UK renters handed '25 per cent' of landlord's revenue thanks to legal loophole

Airbnb users in the UK have been handed a welcome boost as the company brings in its long-term rental marketplace that allows tenants to sublet homes on a part-time basis to the UK. The company links potential renters with landlords who are willing to allow tenants to act as hosts for a limited time to earn money when they are not using their property.

Gary Hall, head of lettings at Knight Frank, said: “We currently have the issue of tenants who Airbnb their properties across London without permission. Without proper verification, this initiative risks landlords being exposed to unauthorised property listings by tenants who do not have approval.

“Airbnb needs to do more to make sure it is done with the permission of the landlord. More rigour and proof that it is the landlord who has given permission for this to happen, with extra level of security over just a contact signature. At the moment there is abuse, and we don’t want the problem to get worse.”

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Jesse Stein, Global Head of Real Estate at Airbnb, told Letting Agent Today: “It’s no secret that a lot of tenancy agreements say do not sublet [so] unfortunately, renters have had a challenge historically to become Airbnb hosts. Landlords taking part in the programme were happy as long as they could ensure that [the flats] are people’s primary homes.”

Airbnb has launched its Airbnb-friendly apartments initiative in the UK which links potential renters with landlords who are willing to allow tenants to act as hosts for a limited time when they are not using their property, reports The FT. Tenants in nearly 1,500 flats can sign a contract with their landlord, establishing hosting rules such as limits on the number of nights that the property can be let out, and must agree to share 10%-25% of the revenue with Greystar.

After a successful launch in the US, Airbnb is now “actively discussing” with more landlords about joining the platform and extending the concept to other parts of the UK.