Short let comfort but management company pain?
Hi all, I’m seeking advice on an issue regarding my short-let/Airbnb property.
Last month, I listed my purpose-built flat as a short-let. While I’ve only received about five bookings so far, along with some upcoming reservations, I find comfort in having control over the flat compared to traditional renting. The decision to pursue short-lets stems from ongoing challenges with tenants failing to pay rent, which has led to a financial loss exceeding £16K. My intention is to continue with short lets until I can exit my fixed mortgage product, after which I’m considering selling the property.
However, I recently received an email from the service charge management company, prompted by a complaint from someone in the flat. They stated that subletting of this nature is not permitted without prior permission and have instructed me to remove the listing within seven days. Failure to comply, they warned, will result in legal action, with any associated costs being billed to me. This is particularly troubling, as I took out a loan to prepare the property for short-let purposes.
I also recall the management company requesting permission last year to charge landlords for letting-related matters, and this was declined by one of the leasehold directors. Given this situation, I’m seeking guidance on the best way to proceed. Is there an alternative approach I can take to address this issue with the management company as I’m not sure if they would even grant permmision or whether they want extra money for this?
Many thanks
James
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Member Since March 2023 - Comments: 1506
10:15 AM, 14th January 2025, About 1 year ago
I don’t blame the resident(s) for complaining. Airbnb has decimated many neighbourhoods. Have you told your insurance company you are using Airbnb for letting –
Member Since October 2022 - Comments: 410
10:37 AM, 14th January 2025, About 1 year ago
Another thread regarding insurance implications resulting in leaseholders not complying with their lease.
The Man Co advice to you is correct. Letting in breach of lease, a legally binding contract between you and the management company, means block insurance invalidated.
This allows the man co to take legal action against you and serve a section 168 Commonhold & Leasehold Reform Act notice as a preface to forfeiture of your lease.
You do not own the physical flat. You own the right of occupation in accordance with the covenants in your lease which you appear to have breached
Member Since January 2020 - Comments: 559
10:38 AM, 14th January 2025, About 1 year ago
You will have to read your lease. Many flat leases require occupation by a family and forbid letting, so you need to read carefully. It may be worded so that the management company has to give consent, for which they will usually make a charge.
You’ve put the cart before the horse so need to go back to basics with this I’m afraid.
Member Since January 2015 - Comments: 1450 - Articles: 1
3:26 PM, 14th January 2025, About 1 year ago
I hope you checked that your buildings insurance allows short lets – many don’t.
Should there be a claim by any flat/the block then the building might not be covered and you would be 100% liable for all the repairs etc and the real possibility that the insurers no longer insure the building.
Member Since January 2025 - Comments: 13
5:51 PM, 14th January 2025, About 1 year ago
100% agree with checking that your buildings insurance permits short lets (airbnb, vrbo etc), sub-lets to Housing Associations/Local Authorities etc. You risk having your building insurance voided, if not allowed – I’m living this nightmare situation right now. As others have advised, you should also check your lease for same.
Member Since July 2013 - Comments: 1266 - Articles: 1
7:13 AM, 18th January 2025, About 1 year ago
And even if they do permit, have you cleared it with your lender? if it’s a B2L it will not necessarily be permitted to have short lets