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Making money from short-term lets? Check your lease!

Written by: Mary-Anne Bowring 02/09/2020
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The Risks of Short-Term Lets

  • Renters and leaseholders could face severe legal consequences, including fines and eviction, for renting out properties on platforms like Airbnb without proper authorization.

Case Study: Toby Harman's £100,000 Fine

  • Toby Harman was fined £100,000 and evicted after sub-letting his flat on Airbnb in violation of his social housing agreement.

Check Your Lease Before Listing

  • Leaseholders must ensure their lease agreement permits short-term lets; most leases restrict properties to being used solely as private dwellings.

The "Airbnb Ruling"

  • The 2016 case of Nemcova v Fairfield Rents Ltd clarified that short-term rentals are often not allowed under residential leases.

Commercial Use Restrictions

  • Most leases prohibit using a property for commercial purposes, including Airbnb, without the freeholder’s consent.

Proceed with Caution

  • Before listing a property for short-term let, leaseholders should thoroughly review their lease and consult with their landlord or freeholder to avoid legal issues.




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