Numerous home owners now use short-term lets as a source of income. You too may be tempted to give it a go. But before you do, and if you are renting your property, rather than owning it, then please think again.
This shows why!
Toby Harman was taken to court by Westminster City Council, his landlord, and was hit with a huge £100,000 fine for renting out his London flat on the Airbnb platform.
His "cosy studio apartment with a hot tub" was available to rent on the short-term lettings website for many years. He was taken to court when his landlord discovered him masquerading as ‘Lara’ on the holiday home website. This sub-letting was in strict breach of his social housing tenancy agreement. Toby lost his case and appealed. The appeal failed, and he was evicted. He was also told to pay back £100,974 in unlawful profits.
Eviction is highly likely if you’re caught by your landlord.
If you are a leaseholder, check your lease before deciding to rent out your property as a short-let. The vast majority of leases state that a flat can only be used as a private dwelling and short-term lets are very unlikely to fit the bill. Usually, six months is the minimum period that you may rent your property out for, but it can be a lot longer than that, or not permitted at all.
The widely reported 2016 case of Nemcova v Fairfield Rents Ltd (now known as the Airbnb ruling) is a clear illustration of this.
The other important point to note was highlighted in another case - Bermondsey Exchange Freeholders Limited v Ninos Koumetto. This case is related to the fact that most residential leases don’t allow owners, without the consent of the freeholder, which is unlikely to be given, to share possession or occupation of their flat nor use it for commercial purposes. This includes Airbnb lettings. These court cases clearly show that short-term lets are a minefield if you live in a leasehold property.
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