Posts with tag: subletting

BBC Inside Out (London) uncovers opportunistic tenants subletting via Airbnb

Published On: October 30, 2019 at 9:54 am

This week, the BBC aired a regional show in London highlighting the growing number of tenants subletting via short-term rental platforms without their landlords’ permission.

The show shared the story of a landlord who ended up £10,000 out of pocket after his tenants ‘professionally’ sublet his property in Bloomsbury on Airbnb.

Despite the tenants having a 22-month assured shorthold tenancy (AST), it was discovered during a periodic inspection that they were subletting the property. The tenants had consented to the inspection by letting agency Base Property Specialists ltd. The agent arrived early to find them checking a family into a property.

After looking further into the situation, the agent found the property on Airbnb, listed as a single dwelling and as two separate bedroom rooms. There were also more than 70 booking reviews for the property.

Base Property contacted the tenants to inform them that they were breaching a number of licensing laws and instructing them to remove all listings. This included any other sites they may have been using to advertise the property. They were told to remove the key safe they had installed and made good any damage that had been caused.

Two courses of action were provided to the tenants: to re-occupy the property themselves or surrender under the contractual Early Termination Agreement, which at that point came to £4295.

The tenants decided to stay, removing the key safe and repairing the damage, but neighbours were still reporting people coming and going. When the agent arranged for a plumber to fix a maintenance issue, he was told by the occupants, a Russian family, that they did not speak English and were renting the property.

Commenting on the case, Kristjan Byfield of Base Property, said: “One thing I found extremely disappointing was Airbnb’s refusal to take any action whatsoever. When we contacted them and provided evidence that the “hosts” were not the legal owners of the property and were in breach of the landlord’s mortgage and buildings insurance terms, local licensing laws, and both short-term let and HMO licensing, their response was take it up with the tenants.”

It was at this point that the tenants were refusing to communicate with their agent. Despite continuing to host on Airbnb and using a professional laundry service to prepare beds, they denied their actions. Contractors hired to fix a leak were refused access, causing further damage to the property.

Kristjan Byfield called in the help of Paul Shamplina of Landlord Action who served the tenants with a Section 8 notice and thereafter, the Landlord Action solicitors issued possession proceedings.

Paul comments: “Kristjan and his team had done everything correctly. They had obtained thorough references, carried out regular property inspections and even given the tenants the opportunity to put the situation right when they were caught out.

“Unfortunately, unauthorised use for short lets is a growing problem, as the Westminster Planning Enforcement team will discuss on the show, and councils are struggling to cope with the volume of cases.

“At Landlord Action, we always have a number of sub-letting cases at any one time, particularly from landlords whose tenants have sub-let via Airbnb without consent.”

Both Paul and Kristjan agree that there are lots of Airbnb hosts that do a fantastic job, do not cause disruption to neighbours and comply with all necessary licences. However, they do feel that Airbnb should be doing much more to prevent unauthorised hosts.

Kristjan said: “We have had a number of cases where the landlords agree for the tenants to sub-let, and with proper communication and agreements, it can work very well.

“However, 95% of issues such as this case could be eradicated if Airbnb invested in some simple technology to cross-reference the name of the host with the owner’s name, via the Land Registry, and then simply obtained proof of consent to sub-let if those names do not match.”

Paul added: “Their unwillingness to take responsibility and make improvements is damaging to the private rented sector.”

Some Grenfell Tower Victims May Never be Identified due to Subletting

Published On: June 21, 2017 at 8:12 am

Author: Em Morley

Categories: Property News

Tags: Grenfell Tower,Health and safety,London,subletting

It’s been one week since the devastating Grenfell Tower fire shook North Kensington. But some victims of the blaze may never be identified due to subletting, believes a lawyer.

Some victims of last week’s fire were living in flats that were sublet without permission by the original tenants, according to the local North Kensington Law Centre.

At the time of writing, Scotland Yard has confirmed that the death toll stands at 79.

Some Grenfell Tower Victims May Never be Identified due to Subletting

Some of those that survived the blaze were reluctant to seek help from the authorities, as they feared being detained over their unresolved immigration status, says Victoria Vasey, the Director of North Kensington Law Centre.

A further problem for survivors, she explains, is that those sent by the Kensington and Chelsea authority to hotels for emergency accommodation last week were all informed that they would have to leave by Tuesday (yesterday).

“They were told last Friday and spent all weekend stressing because there was no one available to answer questions,” Vasey states. “It affected scores of people, but they have now been reassured and allowed to stay where they are.”

Vasey also adds that the problem of identifying victims was being complicated by the fact that “a lot of people were irregular in their tenancies and some were subletting. Some of them were illegal sub-tenancies”.

Those who died in the fire may not be those recorded as the official tenants of the flats.

Vasey welcomes the large number of lawyers who have volunteered to help provide free legal advice.

Daily legal clinics have been set up to advise displaced tenants on housing problems.

“Many people were concerned about their immigration status,” Vasey reports. “Some were in the middle of applications [to be naturalised] and have lost all their papers. We are offering support to them.”

She continues: “Some of the people feel they can’t seek help because they are terrified they will be carted off to immigration detention. It’s a big problem. We are trying to get the word out to get them to come and see us. We can give them advice on the basis of client/lawyer confidentiality.”

While survivors may, at a later stage, consider bringing compensation claims or seek other ways to obtain justice, Vasey claims that families are at the moment focused on more immediate needs.

One issue that may become more important once the inquiry is launched is whether the cladding added to the exterior of Grenfell Tower was primarily for insulation purposes, or because it made the building more attractive. There have been allegations that the tower had been renovated to attract more upmarket tenants.

Vasey wrote to the Home Office on Friday, calling on officials to provide emergency help for those who have lost all of their documents.

“There has been nothing to suggest there will be a waiver of the fees,” she says. “Which would be important given the circumstances they are left in.”

Landlords, Check Your Properties for Illegal Subletting

Published On: December 16, 2016 at 9:24 am

Author: Em Morley

Categories: Landlord News

Tags: Airbnb,illegal subletting,rental property,subletting,tenants

Airbnb is Backing Sadiq Khan’s Call for Short-Term Lets Register

Imfuna, the digital inventories and inspections specialist, is urging all landlords and letting agents to check their properties for illegal subletting, as Airbnb continues to expand rapidly in the UK.

Landlords, Check Your Properties for Illegal Subletting

Established in 2008 in San Francisco, Airbnb now has over two million homes and rooms available to rent around the world. It is estimated that 80,000 British property owners are earning income from Airbnb – and the number is doubling by the year. More than 33,000 of these homes are in London.

While it is not known how many Airbnb hosts take part in illegal subletting, landlords and agents are reminded that it’s a growing problem. Many tenants do not seek approval from their landlord or agent before subletting, and therefore breach the terms of their lease.

If you find that your tenants are subletting illegally online, here is what you can do: /property-sublet-online/

The Founder and CEO of Imfuna, Jax Kneppers, says: “When there is multiple occupancy in a property, wear and tear is dramatically accelerated. The most common damages we see in rental properties are iron burns on carpets, cigarette burns, soiled marks on baths and UPVC windowsills and frames, heat damage to polished wooden furniture, and stiletto heel imprints on wooden floors and vinyl.

“It is vital that landlords and agents make regular inspections of their properties to check that the tenants who are listed on the tenancy agreement are the only residents. At the end of the tenancy, landlords should always change the locks if the property has been sublet. Landlords can also do regular checks on Airbnb’s website to see if their property has been listed there.”

Howard Lester, the Director of Balgores Property Group, also comments: “Over the last 12 months, we have seen a growth of illegal subletting and this is causing a host of problems for landlords. Many of these subletting tenants are not known to the landlord and have not undergone the rigorous reference checks. Inevitably, the property gets damaged with more occupants and there is the major issue of excessive wear and tear.

“We conduct regular inspections on our properties and are able to assess quite quickly if there is illegal subletting. The tell tale signs are excessive rubbish in the bins, extra clothes and bags, and additional toothbrushes and bedding.”

What to do if Your Property has been Sublet Online

Published On: December 9, 2016 at 10:15 am

Author: Em Morley

Categories: Landlord News

Tags: illegal subletting,student landlords,student tenants,subletting,tenants

As the Christmas season approaches, online student lettings platform StudentTenant.com highlights the growing problem of tenants – particularly students – subletting their homes through websites like Airbnb. So what can you do if your property has been sublet online?

With the high expenses of the Christmas period and students returning home to their families, many tenants are taking the opportunity to sublet their accommodation online to make up the costs of this expensive time of year.

What to do if Your Property has been Sublet Online

While this might seem the perfect solution, there are many problems with subletting a property that you don’t own. The majority of tenancy agreements do not permit subletting without the consent of the landlord. As a result, the landlord must be notified and it becomes their decision.

However, many students will still sublet online without speaking to their landlord. Over the past year, StudentTenant has detected an increase among landlords that have seen their property on Airbnb or a similar platform, or found that the tenant has sublet online without any prior knowledge or discussion.

Tenants are reminded that it can be extremely dangerous to let a stranger into your home, despite the simple verification process involved in setting up an Airbnb account. Your roommates, neighbours and belongings must all be considered.

In addition, there are liabilities with insurance as well, particularly if the landlord is unaware that a person who is not on the lease is staying in the property.

Airbnb gives tenants advice on how to speak to their landlord about becoming a host, and what issues need to be addressed before putting the property online. It recommends looking at the lease, speaking with neighbours, and learning the rules of the building. Although the site does offer a £600,000 Host Guarantee, it does not act as homeowner’s or tenant’s insurance, and has a list of limitations depending on what country the home is located in.

The Managing Director of StudentTenant, Danielle Cullen, comments: “Students can be strapped for cash, and it doesn’t help during this busy season, but subletting a rental property is not the solution. Not only can it be a liability for your roommates and your belongings, but it can lead to serious insurance problems for your landlord, especially if they don’t know about the person renting. It also goes against most leases, which is a breach of a legal document.

“Of course, we can sympathise with the students, but we must emphasise that it is neither a safe nor legal route to take when trying to make a few extra pounds.”

So what can landlords do if their property has been sublet online?

“In the case of a landlord discovering that a tenant is subletting their rented space, there is a three-step process that needs to be addressed,” she explains.

“The first is to speak directly with the tenant. It could be as simple as not understanding that the tenancy terms are being broken. If the advertisement remains active, the next step is to speak with the sub-tenants or the subletting platform in order to seek further action. Finally, if nothing changes, the landlord may only be left with legal action against the tenant, and should seek advice.”

Half of subletting occurs with landlord consent

Published On: November 18, 2015 at 11:53 am

Author: Em Morley

Categories: Landlord News

Tags: landlords,rental market,subletting,subletting property,tenants

Alarming new research suggests that nearly half of tenants that sublet their property do so without the knowledge or consent of their landlord.

Findings from the report by the National Landlords Association come as the Government recently proposed the introduction of minimum room sizes in order to clamp down on problems with rented accommodation, such as unauthorised subletting.

Permissions

11% of tenants admitted that they have sublet all or part of their property in the past. Of these, just 5% did so with the permission of their landlord.

26% said that they have approached their landlord over the possibility of subletting, but had their request turned down. 22% of requests were permitted. 63% said they hadn’t or wouldn’t approach their property owner about this.

‘These findings indicate that subletting is not common in private rented homes, but worryingly that where it does happen, much of it takes place behind landlords’ backs, without their knowledge or permission,’ said Carolyn Uphill, Chairman of the NLA. ‘This isn’t something apparently harmless, like putting your flat on AirBnb while you are on holiday.’[1]

‘We are talking about individuals looking to deceive their landlord and maximise their personal gains at the expense of proper property management standards and the risk of others. It not only increases the cost of renting for the unwitting sub-tenants, it affects their rights and can reduce security of tenure,’ she added.[1]

Half of subletting occurs with landlord consent

Problems

Uphill went on to say that, ‘subletting can also breach a landlord’s mortgage terms, the conditions attached to licenses granted for letting out shared homes and invalidate existing insurance products-so they must be aware of the problems it presents.’[1]

‘The NLA advises all landlords to insert a clause into new tenancy agreements that makes clear sub-letting is only allowed with the landlords’ permission, which should not be unreasonably withheld. This would reduce their exposure to a whole host of unnecessary risks, including hefty fines and even a prison sentence,’ she concluded.[1]

[1] http://www.landlords.org.uk/news-campaigns/news/half-tenant-subletting-occurs-behind-landlords%E2%80%99-backs

Proposals to tackle rogue subletting criticised

Published On: November 11, 2015 at 10:54 am

Author: Em Morley

Categories: Landlord News

Tags: landlords,rogue landlords,subletting,tenants

A tenant eviction specialist has poured scorn over latest Government proposals designed to prevent subletting scams that ultimately lead to tenants being placed in unsuitable and cramped accommodation.

Founder of Landlord Action, Paul Shamplina said that the proposals would require a larger scale of enforcement resources in order to ultimately be effective.

Alterations

The Government plans to alter the scope of mandatory licensing of HMO’s to smaller and medium-sized properties. It believes that by expanding the number of properties to which the rules apply, this will make it easier for local authorities to bring standards up in properties used as shared houses.

While welcoming the ideology behind the plans, Shamplina said that some landlords will continue to abuse the system. He notes that these landlords, ‘are guilty of exploiting the vulnerable whilst profiting from the housing crisis, particularly in the capital. Therefore, anything which helps to eliminate this problem and impose proper sanctions in the case of violation is a positive step forward.’[1]

Hindrances

Shamplina feels that, ‘one of the biggest problems with implementing any new legislation is enforcement.’ He said that, ‘local councils do not have enough resources as it is, with environmental health officers already responsible for monitoring overcrowding, subletting, poor conditions, and most recently retaliation eviction.’[1]

‘There is no room in our sector for rogue landlords, but to tackle the problem properly, legislation needs to be backed up by more boots on the ground,’ he added.[1]

Proposals to tackle rogue subletting criticised

Culprits

Continuing, Mr Shamplina said that the leading instigators responsible of setting up uninhabitable rooms are not just rogue landlords, but also tenants posing as landlords.

‘Landlord Action has never seen so many subletting cases as it has over the last two years, with an 18% increase. This has been fuelled by sky high rents preventing some tenants from being able to afford even single-unit accommodation, forcing many to resort to bedsits or shared accommodation,’ he noted.[1]

A recent North London subletting case handled by Landlord Action uncovered a home where partition walls were erected in order to create more bedrooms.. Most rooms were just large enough to fit a single mattress in, with the rogue tenant subletting each room for £750 per calendar month.

‘Cases like this are not only damaging to the property and financially devastating for landlords, but are also extremely unsafe, creating untold health and safety issues, particularly relating to fire safety and sanitation issues,’ said Shamplina, ‘They should also act as a reminder to landlords of the importance of carrying out thorough tenant referencing checks, as well as regular property inspections,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/11/eviction-specialist-warns-about-subletting-scams