Airbnb is an extremely popular online platform linking up property owners with spare rooms with travellers and holiday makers looking for accommodation. Going away for a week? You can earn the money back that you spent on holiday by letting out your flat while you’re away.
However, Airbnb users who own leasehold properties could find themselves in breach of the terms of their lease. If you own a flat in a large building it is likely you own it under leasehold which will almost certainly include a ‘user covenant’ reading something along the lines of “not to use the demised premises for any purpose whatsoever other than as a private residence”. The Upper Tribunal (Lands Chamber) held in a recent case that occupation by travellers/holiday makers and other short term lets through Airbnb cannot be regarded as falling within the definition of ‘private residence’ due to the lack of permanency. If you’re letting out your flat or a spare room through Airbnb you may just find yourself in a bit of trouble.
And to throw another spanner in the works from 1st January 2017 London homeowners using Airbnb for short term lets are required to apply to the council for planning permission for a ‘material change of use’ if they wish to rent out their property for more than 90 days per year.
Airbnb is a convenient idea that has clearly proven successful for millions of people, just ensure you read the terms of your lease and Airbnb terms and conditions carefully before continuing.
Contact any of our offices for further advice.
