BBC Inside Out uncovers opportunistic tenants subletting via Airbnb

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On the Monday 28th October at 7.30pm, BBC Inside Out (London) will highlight the growing number of people making a business out of their tenancy via short-term rental platforms, without their landlords’ permission. The show covers the story of a landlord who ended up £10,000 out of pocket after his tenants ‘professionally’ sublet his property in Bloomsbury on Airbnb.

The
tenants had a 22-month AST arranged through Base Property Specialists ltd. During
a periodic inspection, consented to by the tenants, the agent arrived early to witness
the tenants checking a family into the property. On returning to the office,
the agent reviewed Airbnb to find the property listed both as a single dwelling
and as two separate bedroom rooms. Airbnb had more than 70 booking reviews for the
property, with the first being the same month that the tenants’ tenancy
commenced, showing they had been subletting it from the beginning.

Property Base contacted the tenants informing them that they were breaching a number of licensing laws and instructing them to remove all listings from Airbnb (and any other sites they may have used), cancel all bookings, remove the key safe they had installed and make good any damage that had been caused. The tenants were offered two courses of action: to re-occupy the property themselves or surrender under the contractual Early Termination Agreement, which at that point totalled £4295.00

Despite the tenants requesting to stay and subsequently removing the key safe and repairing the damage, Base Property continued to receive reports from neighbours of 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.”

By this point, the tenants were refusing to engage with the agent.  They continued to host on Airbnb despite denying it, even using a professional laundry service to prepare the beds.  They refused access to contractors who were due to fix a leak, 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 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, the feel that Airbnb should be doing much more to prevent unauthorised hosts. “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 owners name, via the Land Registry, and then simply obtained proof of consent to sub-let if those name do not match” says Kristjan.

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

Watch the
whole story on Monday 28^th October, BBC One at 7.30pm.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BBC Inside Out uncovers opportunistic tenants subletting via Airbnb | LandlordZONE.

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Dan Wilson Craw laments the human misery that his demands would increase

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Dan Wilson Craw is Director of the organisation that calls itself Generation Rent. He was quoted yesterday as follows:

“Without a reliable housing benefit system, Londoners on low incomes are getting into debt, going without food and heating or being forced to move out of neighbourhoods they grew up in.

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Camera shop Jessops calls in administrators

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High Street
Retail:

Yet another
struggling retailer is looking to close stores, with a possible loss
of the company’s 500 employees’ jobs if all the shops were to
fold.

Even Dragons Den
star and serial business owner Peter Jones, who owns camera shop
chain, cannot sprinkle the necessary stardust, it would seem, to
make a success of the venture.

Peter Jones bought
the Jessops chain with the well known High Street brand name from the
administrators himself back in 2013 after the then business collapsed
owning creditors around £81m.

Jones has managed to
increase sales revenues in most of the years since his own purchase,
but the firm’s profits remain stubbornly low as rents have risen,
falling to less than £10,000 last year.

It is reported that
Mr Jones will now seek a complex rescue deal for the firm’s property
arm, JR Prop Limited, a company voluntary agreement (CVA) with its
landlords and lenders at a time when empty High Street shops have
reached their highest level in the last four years.

This CVA is an
insolvency process that allows a business to agree with its creditors
how it will pay off its debts, or a part of its debts, and is often
an opportunity to close unprofitable shops while retaining profitable
ones with renegotiated rents.

The BBC has reported
that sources close to the firm think Jones still sees a good future
for the business but has given no indication of which shops may
close.

Jones’ thinking
when taking over was that even though almost every mobile phone
incorporates a camera – some capable of taking better photos than a
dedicated camera – was that there was still a market for the
specialist camera sold through a High Street store and online.
However, sales have not met these expectations.

The second administration of Jessops follows a long line of failed High Street retailers with the likes of Maplin, Poundworld and Toys R Us and Debenhams either going down the tubes completely or going through the pre-pack CVA process. A whole host of others have gone through this CVA restructuring process.

With each High
Street closure, property values are affected and landlords are put
under more pressure to reduce rents.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Camera shop Jessops calls in administrators | LandlordZONE.

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Crisis looming in supply of rented properties

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Landlords are warning of a rented housing supply crisis as a new survey shows more landlords are selling properties than buying whilst demand continues to increase. According to research by the Residential Landlords Association based on a survey of over 2,700 landlords, almost 25 per cent have seen the demand for private rented property increase […]

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Rental supply crisis looming

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The RLA are warning of a rented housing supply crisis as a new survey shows more landlords are selling properties than buying whilst demand continues to increase.

According to research by the Residential Landlords Association based on a survey of over 2,700 landlords

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