The idea of Airbnb is simple. Create a quick listing, prepare your home and allow visitors to pay for your room or flat per night. Airbnb is a hugely popular platform to find and let rooms for travellers all over the world. There were over 25,000 Airbnb listing in the UK in 2017 alone! But be aware, Airbnb may cause problems for block of flats property management. With the increasing popularity of Airbnb, we advise block management companies to discuss and understand the potential issues below:
Subletting your flat, even for a night or two, may be breaching the rules of your lease agreement. Many lease covenants include restrictions such as:
• The property must only be used as a ‘private residence’
• You must receive permission from the freeholder before the flat is rented
• If you can rent the flat out, there may be minimum / maximum rental period restrictions.
• Noise restrictions
Be sure all tenants review all areas of their lease before signing up.
Allowing unknown guests to stay in the property may increase the risk of the whole block. This risk may impact your block of flats insurance policy. Also, your policy may not cover unknown tenants or guests. If you are unsure, speak to your block buildings insurance providers for more information.
To put listers minds at ease, Airbnb offers the reassuring £600,000 host guarantee. If the rented property is damaged, Airbnb promise to reimburse their hosts up to £600,000 to cover the damage. However, this cover is not the same as renters insurance and does not cover any damage to shared or communal areas of the block of flats property.
Want to know more about flat insurance or directors and officer's liability insurance? Call Flats Direct today on 0800 7316242 or 01202 862660, or go online to receive your free block of flats insurance online quote now!