Ruling on use of rented flat for AirBnB

The Upper Tribunal (Lands Chamber) has held that a tenant breached a covenant in their long lease of a flat that prohibited use of the flat for any purpose whatsoever other than as a private residence. The tenant had advertised the flat on the internet for short-term lettings and granted a series of such lettings.

Although this decision turns on its facts and the construction of the lease in question, residential landlords may find the decision interesting given the increasing popularity for residential property owners to advertise their properties on the internet and elsewhere, as alternatives to hotels, to produce an income stream.

Nemcova v Fairfield Rents Ltd