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Short Term Lettings in Flats
Short term lettings in flats have become an everyday situation for property managers in recent years. The rise in popularity of online Apps such as Air BnB and the like has made it quick and easy to arrange a short term letting when you're away on holiday or away for the weekend - and this is particularly useful where there's a high tourist demand for "city breaks" etc.
However, in the UK, the use of flats is strictly controlled by the terms of the Lease - resulting in many leaseholders falling foul of the law and running the risk of having their flat repossessed. This article explains the rules and the risks.
Read The Lease
The starting point for this subject and anything else leasehold is ... READ THE LEASE. Short term letting is an activity which comes within the 'use' clauses of the lease - and when you read those clauses you'll find wording similar to one of the following examples:
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The demised premises is not to be used for any purpose other than a private residence in single family occupation.
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To use the premises as a dwelling for one family only.
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To use the demised premises as a residential private dwelling only.
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Not to use the demised premises for any business or commercial activity.
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To use the demised premises for residential purposes only and not for any business activities whatsoever.
Whilst reading the lease to find the 'use clauses', you may also find clauses which relate to letting the flat ... or "underletting' ... because renting out the flat is often recognised as a legitimate activity, in certain circumstances. For example the lease may say:
Not to underlet the whole of the Property unless:
- The underlease is on an Assured Shorthold Tenancy agreement or any other tenancy agreement whereby the tenant does not obtain security of tenure on expiry or earlier termination of the term
- The underlease provides that the under-tenant must not do anything that would or might cause the Tenant to be in breach of the Tenant's Covenants.
The lease may also have a section called "The Regulations". These clauses may contain wording such as:
- Not to use the Property for any purpose other than for the Permitted Use or carry on any trade or business at the Property.
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Not to do anything at the Property which may be or become a nuisance or annoyance, or cause loss, damage or injury, to the Landlord or the Flat Tenants or the occupiers of any neighbouring property.
Leaseholders should note that Short Term Lettings are by their very nature a 'business activity' ... because they rent out the flat in return for money.
Follow The Rules
As mentioned above, there may be circumstances where a flat can be rented out; for example via an Assured Shorthold Tenancy. Not every lease allows this type of letting, however some do. These lettings are usually for six months ... one year ... or sometimes longer. They're not 'short' ... which usually means a day, a few days, a weekend, a week or similar short period.
It's vital to "follow the rules" which are written in the Lease for each specific flat. Don't use general advice provided via social media or property websites. Leases are individual to the flat and the Building - and it's crucial to read the specific rules for your specific situation.
IF IN DOUBT - GET LEGAL ADVICE about short term lettings from a leasehold specialist solicitor. It would probably also be useful to check with the Property Manager for your building, as they will know and understand the leasehold rules for your specific property.
Best wishes,
Paul
Paul Casserly
Casserly Property Management
P.S. If you've found this article interesting, informative or useful in any way, please share it using the following links. And I'd love to hear your thoughts, as well. Just leave your comments below. Thank you.
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