Can I Airbnb a leasehold property?
There is no quick answer to this, unfortunately. It may or may not be possible to Airbnb a property that is leasehold and that depends largely on the content of the lease.
Most leases were drawn up before the days of Airbnb and therefore will not make direct reference to it, nor to furnished holiday lets or short term rentals. However, a lease may specify that a flat can only be used for residential purposes in single family occupation,or it may specifically prohibit lets of less than six months. Both of these examples will prohibit Airbnb.
If this is the case, it may be worth discussing the lease and the intention to Airbnb the property with the freeholder and/ or other leaseholders in the building. If there is agreement on the option of Airbnb, it is possible to get a lease updated to reflect this. However, in reality, it's unlikely that all required parties will agree this at the outset.
One option is to suggest to the freeholder and/ or the leaseholders a trial period of six months to a year whereby the property is let on Airbnb and used as a furnished holiday let/ short term rental for an initial agreed period. This can be reviewed on a quarterly basis – or, as agreed, to ensure other residents and neighbours have a formal way to voice any concerns.
To further assure all parties, there are a number of other things that can be considered that will often help to put their minds at rest. For example, having the property fully managed by a professional company. This will ensure that guests are fully vetted so the property is only hosting the very best guests reducing the risk of unruly guests, potential damage and neighbour disturbance. If the management company has 24/7 security this is a great benefit. Interested parties can be provided with both the management company details and the security company’s too giving them two points of contact so should there be any issues these will be addressed within an hour.
If there are no relevant references in the lease that are can be interpreted as prohibiting furnished holiday letting then there should be no reason not to go ahead with this as an option.
Please always take professional legal advice and consider the implications for insurance and mortgage products.
If you need any advice about you property, would like us to manage your property for you, or need help getting started with Airbnb, book a consultation with one of our Brighton property experts.
