Landlords warned over risks of new Airbnb sub-letting scheme

An estate agent is warning landlords of a new Airbnb scheme that allows tenants to sub-let their rental properties.

Knight Frank says the scheme could be open to abuse by tenants, allowing them to list properties without the landlord’s permission.

Airbnb says the scheme is meant to make it easier for tenants to host on the platform and help renters earn extra income.

Initiative risks landlords being exposed to unauthorised property listings

The property portal launched the scheme this week with 1,500 flats in three buildings owned by developer and commercial landlord Greystar.

According to the Financial Times, prospective tenants will have to sign a contract with their landlord, establishing hosting rules such as limits on the number of nights that the property can be let out. They also have to agree to share about 10% to 25% of the revenue with landlords.

Airbnb says it is in talks with other landlords to add more properties and is looking to expand outside of London.

However, Gary Hall, head of lettings at Knight Frank has warned the scheme could be prone to exploitation.

He said: “Without proper verification, this initiative risks landlords being exposed to unauthorised property listings by tenants who do not have approval. To prevent potential abuse of the system, more robust security measures will be essential, extending beyond a simple landlord signature.

“While most tenancy agreements prohibit sub-letting, it remains an issue and this initiative may inadvertently highlight it as an opportunity for some to exploit.”

Landlords and renters to mutually benefit

Airbnb has faced criticism for causing “misery” and becoming an “enforcement nightmare,” with Westminster Council calling for new powers to tackle short-term lets, including a mandatory registration scheme.

The council claims to have more Airbnb listings than any other London borough, with 11,800 properties rented between January and July last year.

An Airbnb spokesman told The Telegraph that the new scheme will make it easier for tenants and landlords to work together.

The spokesman said: “Airbnb-friendly apartments enable landlords and renters to mutually benefit from clear and permitted part-time home sharing in accordance with their rental agreement.

“With rental prices remaining elevated, 79% of UK renters are seeking ways to supplement their income, and 55% would consider home-sharing to earn extra money.

“Airbnb-Friendly apartments offers a solution, providing landlords with oversight to help them share in the benefits of responsible home-sharing while empowering renters to earn extra income.”

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