Airbnb And Your Lease

Understanding the Implications of Using Airbnb for Your Lease

Homeowners across the UK are taking advantage of the rise of Airbnb, seeing the online platform as a potentially simple income stream, yet many are unaware that by doing so they may be in breach of their lease and therefore putting themselves at risk of enforcement proceedings and perhaps significant costs consequences.

Prior to listing your property online, the first step is to check the terms of your lease.  There may be a clause contained within it that prohibits using the premises for the purposes of a business, or states that the premises must be used as a private residence.  Additionally, there are likely to be clauses that refer to subletting or “parting with possession” of the property without the consent of the freeholder.  Such clauses may amount to a blanket prohibition on holiday letting or subletting or require that you obtain permission first.  You must abide by the lease terms or risk proceedings being brought against you.

Recent changes to statute may mean that it will be harder for Landlords to withhold consent for subletting in the future.  The Deregulation Act 2015 supercedes the Greater London Council (General Powers) Act 1973 and states that planning permission is no longer required to sublet in the Capital provided that the property is used as temporary sleeping accommodation for no more than 90 nights annually and at least one of the persons providing the accommodation is liable for council tax.

It is said that ripples that start in London will spread to the rest of the country, and with the backing of statute leaseholders may find it easier to argue that their Landlord is unreasonably withholding consent.

If you are a leaseholder who is considering letting your premises as a holiday let or to tenants, please contact our experienced Landlord and Tenant team for advice on your lease and guidance in this growing industry.