The Rise of Short-Term Lets

Short-term lets have become a popular way for homeowners to generate extra income. However, if you're renting a property, listing it on Airbnb without permission could lead to serious consequences.

A Costly Mistake: The Toby Harman Case

London tenant Toby Harman was taken to court by Westminster City Council and his landlord for illegally subletting his social housing flat on Airbnb. Using a fake name, ‘Lara,’ he had been renting out his property for years, despite his tenancy agreement strictly prohibiting subletting. Once discovered, he was evicted and fined £100,974 for unlawful profits.

Eviction Is Highly Likely If You’re Caught

If your landlord finds out you are subletting without permission, eviction is highly likely. Most lease agreements prohibit short-term lets, often requiring a minimum six-month rental period. Some leases do not allow subletting at all. Before listing your property on Airbnb, review your lease agreement carefully.

The Airbnb Ruling: Nemcova v Fairfield Rents Ltd

In 2016, the case of Nemcova v Fairfield Rents Ltd established that most leases only permit flats to be used as private dwellings. Short-term lets typically don’t meet this definition, making them a legal risk for leaseholder

Why Freeholders Can Block Airbnb Lets

Another key case, Bermondsey Exchange Freeholders Ltd v Ninos Koumetto, confirmed that lease agreements usually prevent property owners from sharing possession or occupation of their flats without freeholder consent. Additionally, many leases prohibit commercial use, which includes Airbnb rentals.

Short-Term Lets Can Be a Legal Minefield

These legal cases highlight the risks of listing a leasehold property on Airbnb. If you rent or own a leasehold flat, you should be extremely cautious before offering short-term lets. Always check your lease terms and seek legal advice to avoid eviction, fines, or legal action.