Renting 4-5 rooms on AirBnB – which use permission class?

Renting 4-5 rooms on AirBnB – which use permission class?

9:51 AM, 12th September 2022, About 2 weeks ago 5

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Hi, I’d like to move house but retain my existing property, rented to multiple single occupants using AirBnB for periods of minimum 5 days to maximum 3 months.

The majority of visitors will be international visitors for Mon PhDs (I know this as I have been using the rent a room scheme for two years and 90% of visits are postgrad students on short courses at nearby university).

I’m struggling to find what use class this would be deemed?

HMO / Holiday Let / Hotel / Hostel?

Any ideas or anywhere that I can be pointed for this information as not to get into trouble with HMRC?

Thanks all.

Helen



Comments

Dennis Forrest View Profile

19:03 PM, 12th September 2022, About 2 weeks ago

it can't be a holiday let - maximum stay of 31 days and visitors must be ON HOLIDAY

David

22:39 PM, 12th September 2022, About 2 weeks ago

It will be an AST. The tenants are not on holiday so it can't really be anything else unless youre planning on serviced let's where you provide laundry and cleaning services etc.

Don't be fooled by the fact you're using Airbnb. That has no bearing on the tenancy type.

Rod

11:37 AM, 13th September 2022, About 2 weeks ago

Reply to the comment left by David at 12/09/2022 - 22:39It cannot be an AST - it will not be their main residence.
Effectively a furnished holiday let but stays of over 30 nights will not count for eligibility for FHL tax purposes.
It is likely to be sui generis for planning
Main issue would be whether it is in article 4 area if tenancies were AST.
As you will (presumably) be providing services such as cleaning, and it is not their main residence, they will be staying under licence.

David

18:46 PM, 13th September 2022, About 2 weeks ago

Reply to the comment left by Rod at 13/09/2022 - 11:37
It will be their main home for the time theyre there, just the same as any other students in the PRS are AST tenants. The courts are usually very hot on abuse of holiday let tenancies where its clear that no holiday was ever intended.

Rod

19:58 PM, 13th September 2022, About 2 weeks ago

There are 3 elements here:

1. Use class - I have already answered this

2. Tax : does it qualify as FHL - potentially, but a careful read of HMRC guide and chat with tax advisor recommended

3. Are they staying under licence or if tenancy is it an AST? For stays of under a month, it's clearly not their main residence. Comparing 2-3 month stay with 10-12 month student tenancies is questionable. Instead, why not compare with a contractor who is working away from home, especially if they get cleaning and linen service?

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