Problem with AST when it's an Airbnb?

Problem with AST when it’s an Airbnb?

Pic of woman landlord tearing up an ast contract property118
Readers Question by Readers Question
9:25 AM, 11th September 2023, 3 years ago 17
Categories:
Landlord NewsLandlords QuestionsLettings & Management

Hi, I wrongly used an AST in an agreement to allow someone to use my property as an Airbnb. She is not resident there and signed the agreement as xxx trading as xx – a business.

Does this make the AST void?

I would like to end the agreement as I cannot get her to accept a commercial style contract.

What should I do?

Thank you,

Mo

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Tags: airbnb, Airbnb Subletting, ast agreement, ast contract question, commercial lease

Comments

  • Blodwyn Blodwyn Read Full Bio

    Member Since August 2016 - Comments: 508

    9:53 AM, 11th September 2023, About 3 years ago

    Oh dearie me!
    See a COMPETENT L&T Solicitor TODAY!
    Don’t do it again.

    1 Report Comment Reply
  • Tessa Shepperson Tessa Shepperson Read Full Bio

    Member Since June 2013 - Comments: 238 - Articles: 49

    10:00 AM, 11th September 2023, About 3 years ago

    This can’t be an assured shorthold tenancy (whatever it says on the piece of paper signed) as ASTs are limited to situations where the tenant occupies the property as their only or principal home (Housing Act 1988 s1).

    I think you had better get some legal advice from a solicitor. Whether and how you can recover possession will depend on the terms of your agreement. It sounds to me as if this is a ‘rent to rent’ situation where the occupiers are holiday makers.

    Note that we have a tenancy agreement that people can buy, for rent-to-rent situations. We include a version adapted for use where the property is to be sublet as a holiday let. Find it here: https://landlordlaw.co.uk/sales-the-landlord-law-r2r-tenancy-agreement/

    If you want telephone advice, we have a special solicitors advice service here: https://landlordlaw.co.uk/openaccess_content/the-landlord-law-telephone-advice-service/ I would recommend JMW Solicitors – their David Smith drafted our agreement.

    4 Report Comment Reply
  • Mawddach Mawddach

    Member Since September 2023 - Comments: 7

    10:15 AM, 11th September 2023, About 3 years ago

    thank you for that-

    Report Comment Reply
  • Simon F Simon F

    Member Since October 2020 - Comments: 199

    10:41 AM, 11th September 2023, About 3 years ago

    If the contract is still in the fixed term stage, before you serve notice, ask your solicitor about pros /cons of including a double value rent demand under section 1 of Landlord and Tenant Act 1730 — that should wipe out any profit they are making if they fail to vacant, and make a difference to how beligerant they’ll be.

    2 Report Comment Reply
  • Mawddach Mawddach

    Member Since September 2023 - Comments: 7

    10:47 AM, 11th September 2023, About 3 years ago

    Reply to the comment left by Simon F at 11/09/2023 – 10:41
    The fist 6 month agreement has ended and they are now on what I think is a periodic tenancy and are still paying rent and taking bookings.

    Report Comment Reply
  • Mawddach Mawddach

    Member Since September 2023 - Comments: 7

    11:08 AM, 11th September 2023, About 3 years ago

    sorry – not a periodic tenancy . An at will commercial tenancy

    1 Report Comment Reply
  • Crossed_Swords Crossed_Swords

    Member Since April 2021 - Comments: 189

    11:34 AM, 11th September 2023, About 3 years ago

    Why does she not want a commercial agreement? Presumably there is a termination clause with a notice period, find out when her last booking is and give notice so she does not take any after that. Sounds like it’s not a valid agreement anyway

    1 Report Comment Reply
  • Judith Wordsworth Judith Wordsworth Read Full Bio

    Member Since January 2015 - Comments: 1450 - Articles: 1

    11:48 AM, 11th September 2023, About 3 years ago

    Give her written notice under the “at will commercial tenancy” (does your incorrectly given AST details what happens on the expiry of the fixed tenancy ie state in writing that the tenancy becomes an “at will [commercial] tenancy (Though you have stated the tenant does not want a commercial tenancy, so a little confused). A correctly drafted commercial tenancy will/should be a full insuring and repairing Lease for x years (if more than 7 needs to be registered at HMLR)
    A tenancy-at-will is a tenancy for occupation of premises for a period less than 12 months, where either landlord or tenant may terminate the tenancy at any time.
    AND treble check your buildings insurance as you may not be covered for Air B&B! (If Air B&B/holiday rental is precluded that’s another good reason to service 1 month’s notice to VACATE not serve notice for Possession)

    Report Comment Reply
  • Teessider Teessider Read Full Bio

    Member Since March 2023 - Comments: 144

    11:53 AM, 11th September 2023, About 3 years ago

    How does your insurer and mortgage provider feel about the arrangement? Is the insurance void?

    Contact an eviction specialist .

    1 Report Comment Reply
  • Mawddach Mawddach

    Member Since September 2023 - Comments: 7

    12:01 PM, 11th September 2023, About 3 years ago

    My insurance went sky high – they don’t like subletting . I made them aware of the situation. Don’t have a mortgage. Am in contact with an eviction specialist. I am just trying to find the quickest way to get rid of her as things are getting very confrontational . The property is in my garden but separate

    Report Comment Reply
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