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29th June 2020

I can see flats to rent on Airbnb and - can I rent out my flat?

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Holidaying in the UK is likely to be very popular this year and, with many people under financial strains, it may seem an attractive option for many to rent out their flat. Flats are mainly leasehold properties and, even with a long leasehold interest, most residential leases will contain a covenant that restricts a tenant’s ability to carry out a trade or business from their flat.

In a recent case, a couple relocated and arranged for their flat to be listed on Airbnb and through a company as serviced accommodation for short term lets, although they still regularly stayed at the flat for a few nights a week. The freehold owner of the building objected. The Tribunal confirmed that the couple were in breach of their lease as using the flat for serviced accommodation on a commercial basis was in breach of the requirement to use the flat as a private dwelling. Sub-letting the flat on an AST (which the couple’s lease allowed), would however not breach the lease, as whoever would be in occupation would be using the flat as their dwelling.

Renting out a flat should therefore be approached with caution and a careful consideration of the terms of the lease. Even renting out a house is not without its difficulties as there may be similar restrictions on the legal title to the property. There are many things to consider including whether you are covered by your insurance or will be in breach of mortgage conditions. Careful consideration should therefore always be given to how you rent out your home and for what purpose.

For further information please contact Sarah Baron on 01223 461155 or click here to email her.