Airbnb accused of misleading tenants and landlords with sub-letting advice

Airbnb has come under fire for publishing a survey that suggests that many renters who want to sub-let a room in their home to earn extra cash, can do so.

Des Taylor, a casework director with Landlord Licensing & Defence, said that the survey was misleading and irresponsible because sub-letting will breach most private rented sector tenancy agreements.

And the breach will expose a landlord to legal liabilities that could result in massive fines.

The online platform for short-term rentals conducted the survey in response to a debate over tenant finances under the Renters (Reform) Bill proposals.

It revealed that nearly 80% of tenants want to boost their income because of rising bills - and sub-letting a room with Airbnb could provide a solution, the platform claimed.

'Sharing a spare room on a short-term basis'

In the platform's press release, Amanda Cupples, the UK and Northern Europe general manager, said: "Sharing a spare room on a short-term basis can allow renters to boost their income and help them with the increasing cost of living.

"We encourage renters to check the terms of their tenancy agreements and with their landlord to see if home sharing is a possibility."

Airbnb also argued that anyone sub-letting could also benefit the landlord by helping to lower any rent arrears and enhancing tenant satisfaction.

However, Mr Taylor disagreed and pointed out that a tenant sub-letting would potentially turn their home into a house in multiple occupation (HMOs), which come under strict local authority enforcement and regulations.

'Tenants and many landlords do not realise'

He said: "Most tenants and many landlords do not realise that it only takes three people, where one is not related to all the others, to make an HMO.

"In legal terms, it is '3 or more persons from 2 or more households'."

Mr Taylor said that Airbnb's survey was 'an interesting concept which will invite many landlords to curse Airbnb since based on this bad advice'.

He also warned that tenants will not realise they will create an illegal HMO which will have lots of regulations that must be complied with.

Landlord would not have to commit an offence knowingly

Mr Taylor also says that a landlord would not have to commit an offence knowingly to be guilty of the law under 'strict liability'.

He says: "A tenant subletting, and unwittingly creating a house in multiple occupation makes the landlord liable for punitive enforcement from the local housing authority."

He also warns that more than a third of London boroughs have 'additional licensing' schemes to regulate HMO occupancy and a landlord could be hit with a £30,000 fine if they become an HMO manager – even if they didn’t know.

There's also the prospect of a £15,000 fine on average for each offence of having an unlicensed HMO.

Subletting tenants will be the immediate landlord

Mr Taylor also highlights that subletting tenants will be the immediate landlord of a subtenant - and they could be handed a rent repayment order (RRO) by the first-tier tribunal.

He said: "Whatever Airbnb's survey results are, they are not going to assist landlords and are going to drive even more out of the business as they become more insistent that it is impossible to continue while tenants are encouraged by mega-corporations publishing results of surveys without any regard for the underlying law.

"Airbnb must now explain to its hosts and potential hosts the legal consequences of sub-letting rooms in their homes and how legally dangerous this would be."

'Risk their advice puts tenants and landlords at'

He also said: "Airbnb must now take urgent advice on the Housing Act 2004 law on HMOs, HMO licensing, and the Management of Houses in Multiple Occupation (England) Regulations 2006 to understand the massive risk their advice puts tenants and landlords at.

"It must then withdraw this advice and lobby the government for a change in the law to allow this possibility."

He added: "As things stand, this is not responsible marketing; it is marketing to have your name in the press at any price without regard for the safety from prosecution of tenants or landlords."

'One of the biggest fears of landlords today'

Simon Thompson, the managing director of Accommodation for Students, said: "It must be one of the biggest fears of landlords today that a tenant will sublet and get the landlord into lots of trouble.

"And here we have a multi-national company urging tenants to do just that without any consideration of the financial impact on a landlord should the tenant sublet.

"Being a landlord is difficult enough without running the risk of creating an HMO and then getting fined tens of thousands of pounds for something the landlord didn't do."

He added: "Mr Taylor is correct to say that Airbnb needs to clarify the situation and learn the laws that govern the PRS - just like landlords must do."