Airbnb: are you breaching the conditions of your lease?

At the beginning of this month (May 2018), an appeal judge continued an injunction preventing a leaseholder of a flat in Bermondsey from letting his flat as Airbnb accommodation, stating that it was a breach of the lease.

Kevin Conway, the leaseholder in Bermondsey Exchange, a former warehouse now transformed into 18 flats, let on 999-year leases, started letting his flat via the increasingly popular Airbnb website back in 2015.

The landlord freeholder was concerned about security issues, extra nuisance and the potential harm to the ‘sense of community’ within the block that casual overnight use could bring.

The freeholder, therefore, sought an injunction to prevent Mr Conway from using the flat for such activity. 

Lambeth County Court duly issued an injunction to stop temporary lettings, stating that the Airbnb listing indicated the flat had been used for temporary lets; the landlord had not given consent for the flat to be used in such a manner and that temporary lettings were a clear breach of the terms within the lease.

On appeal, the Central London County Court, rejected all grounds, and upheld the injunction, confirming that:

• Airbnb lettings amounted to a subletting or licence in breach of the prohibition in the lease on parting with or sharing possession or permitting any company or person to share occupation of the flat except by means of an assignment or underlease with the consent of the landlord; and
   
• the flat was not being used as a residential flat but for a commercial hire use as short-term temporary accommodation for paying transient visitors – that was a breach of the user covenant restricting its use to a residential flat with the occupation of one family only.

It is standard for residential leases to contain a clause such as “the leaseholder is not permitted to use the property for any purposes whatsoever other than as a private residence”.

Other important factors to consider are the impact on other lessees and whether a clause exists in the lease that prevents sub-letting. If that’s so, then the chances of an Airbnb letting being in breach are increased.

Before signing up to Airbnb or any similar providers, leaseholders should carefully check the terms of their lease to avoid the risk of a breach of lease and possible court proceedings if the landlord or other tenants object.

SO Legal has solicitors in Brighton, Eastbourne, Hastings, London and Uckfield, and we work with clients across the UK.