Nov 2016
Author: Caroline Walton
With an increase in the current trend of people advertising their residential properties as alternatives to hotels, on the internet or elsewhere, as a way to earn money, tenants need to tread carefully as they could be in breach of a covenant in their lease.
In the recent case of Nemcova v Fairfield Rents Ltd [2016] UKUT 303 (LC) the Upper Tribunal (Lands Chamber) held that the 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 for which they were paid.
If you are a residential tenant and considering advertising your private residence for short term lettings, contact a member of our Property department who can check the terms of your lease before you enter into such an arrangement.
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