"According to Gocompare.com, one landlord, Nigel Broome, ended up with a damage bill of £12,000"
The organisation says that landlords who let via traditional methods have more opportunities to reduce their chances of being hit with hefty repairs bills when tenants turn over.
In the last year there have been a number of high profile cases reported where people who let through short-term lets sites saw their properties trashed by unruly tenants.
According to Gocompare.com, one landlord, Nigel Broome, ended up with a damage bill of £12,000 after letting his South East London flat through Airbnb. Broome alleged that the renters held a New Year's party in his property which led to holes punched in the walls, broken furniture and ruined floors.
Patricia Barber, Chair of the AIIC, says: “No one can deny the success of outlets like Airbnb and there is clearly a strong demand for this type of accommodation. However, there seems to be an increasing number of rental horror stories surrounding this type of let being reported and those who choose to offer their properties through these sites on a regular basis could be leaving themselves open to hefty bills.”
Barber says she knows of a tenant who rented a four-bedroom house for £3,000 a month through a short-term lets website.
She says the tenant was horrified to find out on moving in that the oven and fridge were not working, the garden was overgrown, the conservatory had no glazing and the property was in a generally poor condition. Barber argues that the checks and procedures people letting through short-term lets websites have to carry out are minimal, leading to some properties being let which are clearly not fit for purpose.
Home owners who decide to let through sites like Airbnb are required to check their mortgage contract and ask the permission of their lender before doing so.
Prospective short-term landlords are also required to check their insurance policy to make sure they're covered. They're also required to carry out a fire risk assessment and have gas safety checks every 12 months.
The majority of these websites have extensive terms, information and guidance for prospective landlords but make it clear that users must take it upon themselves to make sure they're not breaking any laws within their country, city or district.
Barber continues: “When you compare the required checks, legislation and measures short-term landlords are required to adhere to with those carried out by someone letting through traditional channels, it's clear there is a big difference. Tenants booking short-term lets through the internet may benefit from more flexible terms and potentially cheaper rents, but there's no guarantee they'll be as well protected.”
Those who let through sites like Airbnb do not have to comply with mandatory deposit protection and tenancy agreement rules and are highly unlikely to reference tenants before letting their properties.
It is measures like these, says the AIIC, which combine to protect landlords and tenants when issues arise at the end of a tenancy.
Barber says: “It's clear that the traditional lettings route offers more security and stability for landlords, although that's not to say there are no risks of property damage when letting this way."
The AIIC also states that the significant bills received by landlords letting property through short-term lets websites reinforces the value of an inventory for those who chose to go down the conventional lettings path.
Barber concluded: “Some level of damage or wear and tear is always likely to occur during a tenancy but a professionally-compiled inventory helps to cover landlords against damage caused by tenants. An inventory can also help to provide landlords with peace of mind throughout the duration of the tenancy.”
