Airbnb is a letting website where property owners rent out their properties on a short-term let basis.
A short-term letting is potentially anything falling short of an assured shorthold tenancy agreement. Such a letting is often used when a property is vacant for a brief period, such as your home or holiday flat.
Are short-term lettings allowed in a block of flats?
Whilst each case will rest on its own merits, and more than likely come down to the interpretation of the flat lease, the answer has been an almost resounding no – it is not permitted.
The majority of residential flat leases will contain wording in them preventing the leaseholder from doing the following:
- Running a business from their property;
- Diminishing the nature and character of the block;
- Causing a nuisance or annoyance to their neighbours or neighbouring properties;
- Letting their property on a short-term basis.
Short-term lettings breach most, if not all, of the above clauses found in many leases, as well as potentially breaching the buildings insurance or the mortgage terms.
If a leaseholder is breaching their lease by permitting a short-term letting, the freeholder or management company for the block can commence forfeiture proceedings against the offending leaseholder.
If the practice of short-term letting is not stopped without delay by the offending leaseholder, the courts could provide a forfeiture Order. The leaseholder may also have to bear any legal costs incurred.
Will Bartley, Property Litigation Lawyer, says: “Court action should be the last resort, and early legal assistance and correspondence can often be the difference between a negotiated settlement and a drawn-out and costly Court Application process.”
This column is taken from Will Bartley’s Property Litigation Q&A, which can be read at length here: https://www.frettens.co.uk/site/blog/litigation-blog/property-litigation-qa-july-2021-airbnb-short-term-lettings
Contact Information: Phone: 01202 499255 Email: wbartley@frettens.co.uk
This article is featured in the August edition of the Dorset Business Focus magazine. Read on the online version here.