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This series of tweets caught my eye this morning as it shows the reality of some of the strategies that claim you can make huge amounts of money.I wonder if the courses mention what a challenge it will be to undertake illegitimate R2R/SA on leasehold properties - for example? ** See our Serviced accommodation - guide & pitfalls for everything you need to know about this sector.**SEE ALSO - Short term letting strategies - differencesUP NEXT - AirBnB neighbourDON'T MISS - Air B n B of BTL flat in LondonNOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
@DanFareyJones beat me to the obvious question
Problem for London landlords - what if current rents are only sustainable as long as this kind of subterfuge by tenants continues?
It's illegal to sublet any property even freehold within a residential block as it breaks the condition of lease the building leaseholder ( A local council or a private management company) and invalidates their liability insurance. Hence it could be open to civil litigation with unlimited damages claimed against you.
Good point JP, but I was more interested/concerned in the subterfuge of getting a short term tenant into the building under the radar of the management company!
More tweets from this string:
There is a clear demand for AirBnB type services
Is that purely down to price? I don't think it is.
Just like Uber, where there are many happy riders and drivers, but which is facing problems in terms of its costs of 'employing' drivers and VAT, AirBnB has many happy guests and hosts, but problems around the legalities of the offer.
There is work to be done to try to find a way to make sure the service can be offered in a way that is safe, legal and financially acceptable to all parties
Is that possible? I am not sure.
Not to mention the 90 day rule in London.
Someone on FB was offering R2R deals on flats in Canary Wharf for SA recently.
I asked him how would he get round the 90 day limit.
No answer came the stern reply.
Something like this..?
Yes more or less!
So basically the legitimate business model of many BTL LL is being undermined by illegal and fraudulent letting.
Of course some LL nay be participating in such fraud.
But invariably it is the tenant who is abusing the tenancy contract.
There is little a LL can do about this short of camping outside the property front door!!
The reduction in the demand for rental property due to illegal subletting could result in demand softening with LL less inclined to invest due to weaker tenant demand as they are all staying in illegal sub let properties!
This cannot assist affordability and necessarily rent pressures will increase with fewer rental properties being brought to market.
I believe councils need far more access to general data so that they can tie up the location of people as to where and what domestic status they have.
It is clear that many tenants are obtaining an unaffordable tenancy in a very nice part of town and are then sub letting or using Airbnb to make their location affordable.
With demand for London property being seemingly inexhaustible these abuses are destined to continue.
Somehow LL have to be able to control who has access to the property.
The problem is with peaceful enjoyment rights there isn't much a LL can do about it and the tenants know this.
A LL have to give 24 hrs notice of attendance to their rental property.
It is relatively easy for the illegal sub letter to be absent from the property during the inspection timeframe.
The tenant/LL can even pay the sub letter to be absent for a few days and then adjust the flat to reflect who should be occupying.
Not hard to do.
Essentially the poor old LL is up against it.
surely due diligence has to play a part any right minded property management company would ask the landlord the question of short term lets, any restrictions etc etc we do as our investors expect a ROI and want us to ensure the legal side is correct