Recently the Upper Tribunal's Land Chamber ruled that a leasehold flat owner was essentially breaking the law by renting out her property through Airbnb. The decision, which has been described by many as a 'landmark ruling', serves as a firm warning for those who currently hold leaseholds and may, therefore, have similar clauses in their contracts.
We have all heard horror stories from hosts and guests renting through Airbnb and similar platforms. These include numerous thefts as well as properties being 'trashed' following drug-fuelled parties and properties being turned into brothels. But it is not just the hosts and guests who have experienced problems. The owners of any neighbouring properties can also experience issues with late night parties, comings and goings throughout the night and general unease at constantly meeting strangers in the corridors. It is perhaps them who suffer the most.
These issues aside, renting your property out through Airbnb and similar websites can pose significant problems for property owners. One particular issue is that of the legality of leasehold property owners who choose to rent out their properties through the likes of Airbnb.