Putting your property on Airbnb might seem like an easy way to make some extra cash. This case shows the risks you face and sends out a warning to anyone who might be thinking about supplementing their income in this way.
Whilst this case dealt with a Council tenant we see similar issues arising with private tenants who own both long and short leases. Most leases will have restrictions on sub-letting and a tenant who breaches them could put themselves at risk of enforcement action from the landlord.
There are also planning restrictions to consider which could see the tenant in breach of the Local Authority’s requirements in terms of how the property is used.
At its worst you might find your property being used for an illegal rave or even as a brothel. We have seen both and you can only imagine the clear up costs!
Council tenant Toby Harman, 37, created the fake identity "Lara" on Airbnb to rent out his studio apartment. The flat, in Victoria, had been advertised since 2013 and received more than 300 reviews, Westminster City Council said. Anti-fraud software had found Harman's first name in reviews and connected the listing to him. Harman's bank statements showed he had been receiving payments from Airbnb for a number of years. He had been taken to court and, after a failed appeal, evicted and ordered to pay £100,974 in unlawful profits, the Times reported.