Using a leasehold flat for Airbnb can cause problems if the lease prohibits short-term lets. It can also lead to issues if guests cause noise, nuisance or disruption for other residents.
For freeholders, the main questions are whether the Lease has been broken, what evidence is available and what can be done to stop the problem.
In this article, Property Litigation expert, Anna Curtis, explains when Airbnb use may breach a lease and what options a freeholder may have.
Can a leasehold flat be used as an Airbnb?
Potentially, but the first step is to check the terms of the Lease.
A Lease may restrict or prohibit short-term letting, subletting, business use or particular uses of the property.
Even if short-term letting is permitted by the lease, the leaseholder may also need to consider other requirements, such as the terms of their mortgage and insurance and any relevant planning requirements.
Is short-term letting a breach of a lease?
It can be. Whether using a leasehold flat for Airbnb or another form of short-term letting breaches the Lease will depend on the wording of the individual Lease.
For example, a Lease might:
- Restrict short-term letting or subletting
- Require the property to be used as a private residence
- Prohibit business use
- Prohibit nuisance to other residents
The wording of the Lease is therefore important. If there is any doubt about whether short-term letting is permitted, the Lease should be reviewed before the property is advertised for short-term lets. You can get in touch with our expert team by calling 01202 499255.
Can a freeholder stop a leaseholder using their flat for Airbnb?
A freeholder may be able to take action if using a leasehold flat for Airbnb or other short-term lets breaches the terms of the lease.
Action may also be possible where Airbnb guests are causing noise, nuisance or another breach of the lease.
What a freeholder can do will depend on the wording of the lease, the nature of the breach and the evidence available. You can read our previous article on Airbnb’s causing problems for neighbours here.
If you are a freeholder and believe a leaseholder is using their property for unauthorised short-term letting, our Property Litigation team can review the Lease and help you understand your options. To discuss your options, get in touch with a member of our team on 01202 499255.
How can a freeholder prove a leaseholder is using Airbnb?
If a freeholder suspects that a flat is being used for Airbnb in breach of the Lease, it is important to obtain evidence showing how the property is being used.
Evidence might include:
- Copies or screenshots of Airbnb or other short-term letting listings
- Booking information or reviews that are publicly available
- Evidence or complaints from neighbours or other residents
- Evidence of repeated short-term occupation
As a freeholder, keeping a clear record can be important if formal enforcement action later becomes necessary.
What can a freeholder do if a leaseholder breaches their Lease?
The appropriate action will depend on the breach and the terms of the Lease.
The first step may be to contact the leaseholder, explain the suspected breach and ask them to stop the unauthorised short-term letting.
If the breach continues, the freeholder may be able to take further enforcement action. Depending on the circumstances, this could include seeking an injunction to prevent the prohibited use from continuing.
Before beginning formal proceedings, freeholders should get legal advice to consider the terms of the lease, available evidence and appropriate procedures. You can contact our team of experts on 01202 499255.
Can a freeholder forfeit a lease for Airbnb use?
A freeholder can potentially forfeit a Lease for AirBnb use if this use continues after the freeholder requests that it stops and after the appropriate court or tribunal process has been followed.
When should a freeholder seek legal advice?
It is sensible to seek legal advice at an early stage if you believe a leaseholder is using a flat for Airbnb or other short-term lets in breach of their Lease.
Getting advice early can help establish:
- What the Lease allows or prohibits
- Whether there is evidence of a breach
- What further evidence may be required
- Whether the issue can be resolved without formal proceedings
- What enforcement options may be available if the Airbnb use continues
Taking advice before contacting the leaseholder or beginning enforcement proceedings can also help ensure that the correct process is followed.
Specialist solicitors for Airbnb lease breaches
If you are a freeholder, management company or leaseholder dealing with an Airbnb or short-term letting dispute, and have any questions after reading this article or would like to discuss your situation, our Property Litigation team can help.
We can review the terms of the Lease, consider whether short-term letting amounts to a breach and advice you on your options.
We offer all new clients a free initial chat. Get in touch with our team on 01202 499255 or by filling out the form.
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