Short let comfort but management company pain?

Short let comfort but management company pain?

0:01 AM, 14th January 2025, About 22 hours ago 5

Text Size

Hi all, I’m seeking advice on an issue regarding my short-let/Airbnb property.

Last month, I listed my purpose-built flat as a short-let. While I’ve only received about five bookings so far, along with some upcoming reservations, I find comfort in having control over the flat compared to traditional renting. The decision to pursue short-lets stems from ongoing challenges with tenants failing to pay rent, which has led to a financial loss exceeding £16K. My intention is to continue with short lets until I can exit my fixed mortgage product, after which I’m considering selling the property.

However, I recently received an email from the service charge management company, prompted by a complaint from someone in the flat. They stated that subletting of this nature is not permitted without prior permission and have instructed me to remove the listing within seven days. Failure to comply, they warned, will result in legal action, with any associated costs being billed to me. This is particularly troubling, as I took out a loan to prepare the property for short-let purposes.

I also recall the management company requesting permission last year to charge landlords for letting-related matters, and this was declined by one of the leasehold directors. Given this situation, I’m seeking guidance on the best way to proceed. Is there an alternative approach I can take to address this issue with the management company as I’m not sure if they would even grant permmision or whether they want extra money for this?

Many thanks

James


Share This Article


Comments

GlanACC

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:15 AM, 14th January 2025, About 12 hours ago

I don't blame the resident(s) for complaining. Airbnb has decimated many neighbourhoods. Have you told your insurance company you are using Airbnb for letting -

Kizzie

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:37 AM, 14th January 2025, About 12 hours ago

Another thread regarding insurance implications resulting in leaseholders not complying with their lease.
The Man Co advice to you is correct. Letting in breach of lease, a legally binding contract between you and the management company, means block insurance invalidated.
This allows the man co to take legal action against you and serve a section 168 Commonhold & Leasehold Reform Act notice as a preface to forfeiture of your lease.
You do not own the physical flat. You own the right of occupation in accordance with the covenants in your lease which you appear to have breached

Graham Bowcock

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:38 AM, 14th January 2025, About 12 hours ago

You will have to read your lease. Many flat leases require occupation by a family and forbid letting, so you need to read carefully. It may be worded so that the management company has to give consent, for which they will usually make a charge.

You've put the cart before the horse so need to go back to basics with this I'm afraid.

Judith Wordsworth

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

15:26 PM, 14th January 2025, About 7 hours ago

I hope you checked that your buildings insurance allows short lets - many don't.
Should there be a claim by any flat/the block then the building might not be covered and you would be 100% liable for all the repairs etc and the real possibility that the insurers no longer insure the building.

EGN

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

17:51 PM, 14th January 2025, About 4 hours ago

100% agree with checking that your buildings insurance permits short lets (airbnb, vrbo etc), sub-lets to Housing Associations/Local Authorities etc. You risk having your building insurance voided, if not allowed - I'm living this nightmare situation right now. As others have advised, you should also check your lease for same.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More