fbpx

Renting Out Your Home on Airbnb? Are You Sure You’re Entitled to Do So?

Are You Entitled To Rent Out Your Leased Home on Airbnb

Tenants should take professional advice before renting out their homes to short-term paying guests via Airbnb, Booking.com or other internet booking sites.

In a case on point, a couple who failed to take that sensible step placed themselves in jeopardy by breaching the terms of their lease.

The couple held their flat under a 125-year lease. In common with a great many such properties, the lease contained a covenant that forbade the flat’s use for any purpose other than as a private dwelling house for occupation by one family at any one time. After they advertised the property for short-term lets on internet booking sites, their landlord launched proceedings.

In rejecting the landlord’s complaint, the First-tier Tribunal (FTT) noted that there had been no complaints of nuisance or antisocial behaviour by the couple’s guests. After relocating for work reasons, the couple had rented out the property as a temporary expedient prior to its planned sale. The FTT also noted that their lease permitted them to grant assured shorthold subtenancies of the flat, for up to six months, without obtaining the landlord’s consent.

In upholding the landlord’s appeal against that ruling, however, the Upper Tribunal (UT) noted that the use of a residential property for short-term occupation by a succession of paying guests has always been treated as a breach of a covenant requiring its use only as a private residence or dwelling house. The couple’s entitlement to enter into subtenancies of short duration did not imply that the property could be used by a succession of unconnected strangers who generally only stayed for a weekend.

On a true interpretation of the covenant, short-term letting of the flat to persons who did not use it as their only or principal home would amount to a breach of the lease. Given the requirement that the flat be occupied by one family, the couple were also arguably prohibited from taking in a lodger. The landlord was granted a formal declaration that the couple had breached the covenant.

Contact our team of property experts today if you need advice or help with letting a property. Call now on 0800 3 10 11 12 or contact us online.

Latest COVID-19 Information

WE ARE STILL OPEN FOR BUSINESS HOWEVER, OUR FRONT DOORS WILL BE CLOSED TO THE PUBLIC DURING THIS 2nd LOCKDOWN PERIOD from 5th November until further notice. For us all to be as safe as possible, our preference will be to interact with clients by telephone, email and/or zoom meetings ONLY. We would ask that if you have to drop any papers off at our offices, you use our Post Box unless you need anything copying, in those cases please knock the door and one of our receptionists will deal with you at the front door but only if you are wearing protective face coverings. If you require further assistance then a member from the relevant department will telephone you thereafter to discuss. We hope you understand that this is to safeguard you, our staff and to limit as much contact as possible. We may take a little longer to respond to enquiries and deal with matters. Please bear with us. FOR MORE INFORMATION CLICK THE BUTTON BELOW.