Airbnb and holiday lettings: What to do with the staycation boom

With the upcoming prolonged Easter weekend, people are turning their thoughts towards going away for a few days.

9th May 2024

There has been a huge rise in the number of complaints from local residents over the problem of Airbnbs being used as ‘noisy party houses’.  Residents are demanding tougher rules governing short-term holiday lets to prevent them from being hired out as weekend party venues.

Holiday home lettings and Airbnb have surged in popularity with many holidaymakers choosing to rent ‘homes’ rather than stay in a hotel.  However, for many homeowners, renting their property can mean taking on additional risks with reports of properties being badly damaged by renters who have held ‘wild parties’, leaving hosts with huge repair and cleaning bills.

Anthony Di Palma, Senior Associate Solicitor at DAS Law, answers the most important questions for those thinking of tapping into this growing market.

If my property or belongings are damaged or stolen, will my home and contents insurance cover me?

It is unlikely your standard policy will provide this cover as the insurer will not usually have catered for paying guests when arranging the policy. However, the host would need to clarify with their insurer as to whether their cover would be sufficient to cover these types of losses.

Airbnb does offer ‘AirCover for Hosts’ whereby the firm provides hosts with $3 million in coverage for damage. However, the company adds that hosts should not consider this as a replacement for owners or renters home insurance.

While a host is not required to take out specific landlord insurance, it would be advisable to speak with a specialist broker or insurer to ensure sufficient protection is in place.

Could sharing my rented or leasehold property with Airbnb cost me my tenancy or home?

Millions of Airbnb users may have unknowingly breached the terms of their leases, leaving them vulnerable to legal action or the loss of their tenancy.

The vast majority of tenancy and leasehold agreements are likely to state that the property in question may only be used as a private residence. This would prevent tenants from renting out or ‘sharing’ their flat or home for short periods. Anyone letting their property out through Airbnb should therefore check their tenancy or leasehold agreements first.

It is not just those renting who should be wary of breaking contracts – mortgage companies may also take a dim view of homeowners offering short-term lettings of their property. It would be wise for owners to contact their mortgage company before offering their home out as they may very well be breaking their mortgage contract. Whilst buy-to-let mortgages allow for assured short-term tenancies, ‘short-term’ is often defined as six months; clearly, Airbnb stays are considerably shorter than this.

Further, hosts should check local regulations as different cities in the UK have specific planning regulations restricting short term letting and may impact what you can do for example, whether you need a licence, how many nights you can rent out the property and whether you need to apply for a change of use planning permission.

What precautions do I need to take to comply with health and safety legislation?

If a visitor has suffered an injury at a host’s premises, he/she may seek to pursue a personal injury claim, particularly if the host has breached their duty of care to the visitor, which subsequently has caused foreseeable injury.

Therefore, hosts must ensure that the premises are reasonably safe for all visitors and take steps to eliminate potential hazards. In particular, it would be a good idea for hosts to provide guests with emergency contact information, including local emergency numbers. Ensuring the property has relevant gas safety checks, EPC, working carbon monoxide detectors and smoke alarms.

With regards to fire safety, landlords should inform visitors of a fire evacuation route, they must also provide a fire extinguisher, fire alarm and carbon monoxide detector. The Regulatory Reform (Fire Safety) Order 2005 makes landlords responsible for taking steps to protect the people using your premises from the risk of fire. This means that a host should carry out a fire risk assessment and, if necessary, improve the fire safety measures while keeping the risks, and fire safety measures, under review.

As an Airbnb host, do I need to have public liability insurance?

There is no legal obligation to take out public liability insurance to host via Airbnb. As part of their ‘AirCover for Hosts’ policy, it provides Hosts with $1 million of cover if a host is found legally responsible for injury or damage to belongings. However, it would be advisable to speak with a specialist broker or insurer to ensure sufficient protection is in place for your needs.

Need more help?

DAS UK customers have access to templates and guides on dashouseholdlaw.co.uk. Whether you want to challenge an employment decision, apply for flexible working rights, contest a parking ticket or create a will, DAS Householdlaw can help.

You can access DAS Householdlaw by using the voucher code in your policy provider’s documentation.

Visit DAS Householdlaw

Disclaimer: This information is for general guidance regarding rights and responsibilities and is not formal legal advice as no lawyer-client relationship has been created. Note that the information was accurate at the time of publication but laws may have since changed.

Everybody needs good neighbours. But what can be done if someone refuses to be neighbourly?

Sahib Ullah Raj, a legal adviser at DAS Law, delves into the common quarrels that can arise between neighbours and outlines the legal avenues available for resolution.

May 2024 Learn more
Rent guarantors – what landlords need to know

With landlords increasingly worried about securing their rent income during Covid-19 is requesting a guarantor the answer? Saiful Ahmed, Legal Adviser at DAS Law, tells you what you need to know.

February 2021 Learn more
Property boundaries – how disputes can tip neighbours over the edge

When it comes property boundaries and pruning hedges, neighbourly niggles can occur.

May 2020 Learn more

Read more from the DAS Law blog

General advice , Property disputes Everybody needs good neighbours. But what can be done if someone refuses to be neighbourly?

Sahib Ullah Raj, a legal adviser at DAS Law, delves into the common quarrels that can arise between neighbours and outlines the legal avenues available for resolution.

May 2024
Property disputes Don’t let your private hedge be a hazard to public footpaths

Charlotte Ellis at DAS Law explains how to stay on the right side of the law and avoid being a nuisance when it comes to your garden or driveway.

May 2024
Property disputes Airbnb and holiday lettings: What to do with the staycation boom

Anthony Di Palma, a solicitor at DAS Law, answers the most important questions for existing Airbnb hosts and those thinking of renting out their properties.

May 2024
Property disputes What to do if your neighbour’s Bonfire Night party causes a nuisance

Grace Dutton sheds light on the laws surrounding Bonfire Night and private firework displays.

November 2023
General advice , Property disputes How far you can legally go to stop someone from playing a trick on you this Halloween

Halloween is generally a ‘spooktacular’ time for all but a few bad apples can spoil the fun. So what can you do if someone chooses to play a trick and damages your property?

October 2023
Property disputes How to ensure your relationship with your neighbours doesn’t become hot and bothered

Sahib Ullah Raj from DAS Law explores the various disputes between neighbours and explains the legal options available.

September 2023
Property disputes Renting Homes (Wales) Act – What do landlords need to know

The Renting Homes (Wales) Act amendments simplifies how you rent properties. Here are the key changes for landlords.

January 2023
Property disputes Building Safety Act 2022 – Who is responsible for ensuring new properties are safe?

What are the legal responsibilities of constructors and owners under the Defective Premises Act 1972? Who else can be held responsible? Corey Evans, Paralegal at DAS Law, has the answers.

August 2022
Property disputes Renting to friends and family – make sure you’re still friends by the end of the tenancy

Tom Pertaia, Associate at DAS Law, offers guidance on the issues and questions landlords should consider when renting to friends and family.

August 2022
Property disputes Section 21 notices - what the end of “no-fault evictions” could mean

The Renter’s Reform Bill was proposed to improve protection for private renters in England, including the ending of section 21 notices.

June 2022
Property disputes Struggling to pay your rent? Here’s what you need to know

The eviction ban in England and Wales has now been extended further; landlords are not able to legally enforce an eviction order until after these bans have ended.

July 2021
Property disputes Landlords – what you need to know about increasing your tenant's deposit

It’s hardly surprising that landlords are considering increasing deposits to reduce their Covid-19 risk. Nevertheless, the Tenant Fee Act limits what you can do with deposits so, as a landlord, what are your options?

February 2021
Property disputes Rent guarantors – what landlords need to know

With landlords increasingly worried about securing their rent income during Covid-19 is requesting a guarantor the answer? Saiful Ahmed, Legal Adviser at DAS Law, tells you what you need to know.

February 2021