Quick Answers
Can a leaseholder run an Airbnb in a residential block?
In most cases no. Most long residential leases contain a covenant requiring the flat to be used as a private residence only. Short-term letting through Airbnb or similar platforms breaches this covenant because it constitutes use as a commercial guest house. The RTM company can enforce the covenant through the First-tier Tribunal.
What is the 90-day rule for London properties?
Under the Deregulation Act 2015, residential properties in Greater London can only be used for short-term letting for up to 90 days per calendar year without planning permission. Above 90 days, planning permission is required — and most London councils will not grant it for purpose-built residential blocks. The 90-day rule is a planning restriction; the lease covenant is a separate obligation that may be stricter.
How does the RTM company enforce against an Airbnb leaseholder?
Through the lease covenant. The process goes: written breach notice citing the specific lease clause, then Tribunal application for a breach determination if the leaseholder does not comply, then injunctive proceedings in the county court for persistent breach. Start the formal process promptly — informal letters that are ignored create a pattern that weakens enforcement later.
The legal basis for enforcement: residential leases almost universally contain a covenant requiring the leaseholder to use the flat as a private dwelling house or private residence only. This covenant has been interpreted by the courts to prohibit use as short-term holiday accommodation, because such use converts the flat from a private residence into a commercial hospitality operation. The RTM company, acting in place of the landlord's management functions, can enforce this covenant against the leaseholder. The enforcement route runs through the First-tier Tribunal, which can make a determination that a breach has occurred — and a Tribunal determination of breach opens the door to more serious enforcement measures including injunctions.
The practical challenge: the hardest part of Airbnb enforcement in a residential block is not the law — the legal basis is well-established — it is gathering sufficient evidence before the breach notice is served. A leaseholder who receives a breach notice and denies operating an Airbnb while removing their listing can be difficult to pursue without contemporaneous evidence. The managing agent's enforcement toolkit therefore starts with evidence gathering, before any formal step is taken.
Key Takeaways
Read the specific lease clause — wording varies and matters
The "private residence" covenant takes several forms across different leases. Some say "used as a private dwelling only," others say "not to carry on any business or trade from the premises," and others specifically prohibit subletting or licensing without consent. The precise wording determines how strong the basis for enforcement is and what arguments the leaseholder might raise in response. A lease that says "private residence only" gives a stronger basis for enforcement against Airbnb than one that merely prohibits "business use" — though Tribunals have found Airbnb to breach both. Always read the specific clause before serving any notice.
Gather evidence before sending any formal notice
The worst sequence is: informal complaint received, immediate breach notice sent, leaseholder takes down the listing, RTM company has no evidence of the letting activity. The formal breach notice should only be served once sufficient evidence has been gathered that the short-term letting is occurring. Check the flat's listings on Airbnb, VRBO, and Booking.com, take dated screenshots, and obtain statements from other leaseholders who have observed guests. Once the notice is served, the leaseholder knows enforcement is in train and may remove the evidence.
Insurance invalidation is a significant risk for the whole block
The block's buildings insurance policy insures a building in residential use. Where a flat is being operated as a short-term let — effectively a commercial hospitality operation — this may constitute a material change in the use of the property that should have been disclosed to the insurer. If it was not disclosed, the insurer may be entitled to avoid the policy or reduce any claim settlement. This is not a risk to the Airbnb leaseholder alone — it is a risk to every leaseholder in the block. RTM directors who are aware of short-term letting in the block should notify their insurance broker and ask for a policy endorsement or a confirmation that cover is unaffected.
A Tribunal determination of breach is required before forfeiture is available
Forfeiture — the extreme remedy of terminating the lease — requires a prior Tribunal determination that a breach of the lease has occurred in cases involving service charge or administrative charges, or a court determination of breach in other cases. This is a safeguard for leaseholders, not an obstacle to enforcement. For Airbnb cases, the RTM company must first obtain a Tribunal determination that a breach of the user covenant has occurred, and then — if the breach continues persistently — use that determination as the foundation for further enforcement proceedings. There is no shortcut to forfeiture and attempting to forfeit a lease without the proper prior determination will fail.
The costs of enforcement can potentially be recovered through the service charge
Legal and Tribunal costs incurred by the RTM company in enforcing the lease against a leaseholder may be recoverable through the service charge from all leaseholders, subject to what the lease says about the recovery of enforcement costs. In some cases, costs may also be recoverable directly from the defaulting leaseholder. Taking early, proportionate action — breach notice, Tribunal application — is generally less expensive than allowing the situation to continue unchallenged until a crisis point is reached. RTM directors who delay enforcement because they are worried about the cost of action should weigh that against the compounding cost of inaction.
Long-term subletting (assured tenancy) is treated differently from short-term letting
Subletting on an assured tenancy — where the leaseholder lets their flat to a tenant on a longer-term basis — is a different legal situation from short-term Airbnb letting. Many leases permit subletting with the landlord's consent. Where the lease permits subletting with consent (not to be unreasonably withheld), the RTM company cannot refuse consent without good reason. Where a leaseholder sublets without seeking consent where consent is required, this is a breach — but a different breach from Airbnb, and the enforcement route and outcome may differ. RTM companies should have a clear policy on subletting consents so leaseholders know the process and managing agents can respond consistently.
Why Short-Term Letting Is a Block Management Problem
Short-term letting in a residential block creates a cluster of problems that do not arise with conventional long-term tenancies. They affect every leaseholder in the building, not just the one running the Airbnb.
Security
Guests have no stake in the building and no community relationship with other residents. Main entrance fob codes and key safe codes shared with strangers; unsupervised access to communal areas and amenities.
Insurance risk
A block insurance policy may not cover commercial hospitality use. Undisclosed change of use may entitle the insurer to avoid the policy — affecting every leaseholder's cover, not just the Airbnb operator's.
Noise and disturbance
Guests checking in and out at irregular hours, parties, unfamiliarity with the block's noise norms. Complaints volume increases significantly in blocks with active short-term letting.
Fire safety
The fire risk assessment and the building's fire strategy are designed for occupants who know the building. Short-term guests do not know the escape routes, the assembly points, or the fire procedures. This can affect the adequacy of the existing fire strategy.
Wear and tear
Higher footfall through communal areas accelerates wear on lifts, carpets, entrance systems, and shared facilities. The cost is borne by all leaseholders through the service charge while the benefit accrues to the Airbnb operator alone.
Property values
A block with known Airbnb activity is less attractive to buyers and mortgage lenders. Some lenders specifically decline to lend on flats in blocks where short-term letting is occurring. This affects the saleability and value of every flat in the building.
What the Lease Typically Says
The starting point is always the specific user covenant in the lease. The most common forms seen in East London residential leases are:
| Lease wording | How it applies to short-term letting |
|---|---|
| "Used as a private dwellinghouse only" | The strongest basis for enforcement against Airbnb. Courts and Tribunals have consistently held that operating as short-term holiday accommodation is not use as a private dwellinghouse. This wording leaves little room for argument. |
| "Used as a private residence only" | Similar effect to the above. "Private residence" has been interpreted to exclude commercial hospitality use. The word "private" is key — it distinguishes personal, domestic residential use from commercial transient accommodation. |
| "Not to carry on any business from the premises" | Depending on the specific wording, this may or may not catch Airbnb. Operating a flat as a commercial short-term let is arguably a business use, but some Tribunals have found that where the leaseholder also uses the flat as their home and Airbnb activity is occasional, this covenant is not breached. This wording provides a weaker basis for enforcement than a strict "private residence only" covenant. |
| "Not to sublet without the landlord's consent" | This addresses subletting but may not catch short-term Airbnb letting, which is arguably a licence arrangement rather than a subletting. Where the lease prohibits subletting without consent but does not have a "private residence only" covenant, enforcement against Airbnb may be more difficult depending on the specific Tribunal's interpretation. |
| No restriction on use at all | Uncommon but it occurs, particularly in older leases and some commercial-to-residential conversions. Where the lease has no user covenant, the RTM company has no lease-based remedy against Airbnb. The only available routes are the 90-day planning restriction and, where applicable, nuisance-based remedies for specific incidents. |
The 90-Day Rule in London
The Deregulation Act 2015 gives residential properties in Greater London a permitted development right to be used as temporary sleeping accommodation for up to 90 nights per calendar year. Above 90 nights, planning permission is required for the change of use. Most London borough planning authorities do not grant permission for this change of use in purpose-built residential blocks.
Important points about the 90-day rule:
- It is a planning restriction, not a lease restriction. The two operate independently. A leaseholder may stay under 90 days per year and still breach their lease. Equally, a leaseholder might comply with their lease (where there is no user covenant) but still breach the planning rules above 90 days.
- Monitoring compliance with the 90-day limit is primarily the local planning authority's responsibility, not the RTM company's. Where a leaseholder appears to be exceeding 90 days, the RTM company can report this to the local planning enforcement team — but enforcement against the planning breach lies with the council, not the RTM company.
- Airbnb, under an agreement with the Greater London Authority, automatically caps listings in London at 90 nights per calendar year unless the host can demonstrate they have planning permission. This does not apply to all platforms — other short-term letting websites do not have the same restriction in place.
A common misunderstanding is that the 90-day rule gives leaseholders a right to operate a short-term let for up to 90 nights per year. It does not. The 90-day rule is a planning restriction that limits how many nights short-term letting can occur before planning permission is required. It says nothing about the lease. A leaseholder whose lease contains a "private residence only" covenant breaches that covenant on night one of their first Airbnb booking, regardless of whether they stay under 90 days. The lease obligation and the planning restriction are entirely separate.
Gathering Evidence Before Formal Action
Serve the formal breach notice only after evidence of the short-term letting has been gathered and documented. The evidence most commonly used in Tribunal proceedings:
- Platform listings: search Airbnb, VRBO, Booking.com, and similar platforms for listings at the property's address or showing photographs that match the flat. Take dated screenshots of the listing including the address, photographs, pricing, availability calendar, and any reviews. Reviews that reference the building or area are particularly useful as corroboration.
- Booking history evidence: platforms that show review histories or booking counts provide evidence of the scale and duration of the activity. A leaseholder with 47 reviews on their Airbnb listing over two years cannot credibly claim the letting was occasional or inadvertent.
- Resident statements: obtain written statements from other leaseholders or residents who have observed short-term guests — unfamiliar people in the communal areas asking for directions, guests with luggage arriving and departing at irregular hours, noise complaints that correlate with booking activity. Contemporaneous complaints logged with the managing agent are valuable evidence.
- Building access records: where the building has an electronic access system, records of unusual access patterns — large numbers of access events on the flat's fob over a short period, or access events when the leaseholder is known to be away — can support the evidence base.
The Enforcement Ladder
Enforcement against a lease breach follows a graduated process. Each step builds on the one before and the documentation from each step is relied on in the next.
Written breach notice
A formal letter from the RTM company or managing agent to the leaseholder citing the specific lease clause being breached, describing the nature of the breach, and requiring the leaseholder to cease the short-term letting activity immediately. Give a reasonable deadline for compliance — typically 14 days. This is the first formal step and creates the documented record that the leaseholder was notified of the breach and given an opportunity to remedy it.
Follow-up and evidence monitoring
After the deadline in the breach notice has passed, check whether the listing has been removed and whether evidence of continued activity remains. Continue monitoring the listing platforms. Obtain updated statements from residents if further incidents are reported. This step establishes whether the breach is continuing after formal notice — which is important for the Tribunal application.
First-tier Tribunal application
Where the leaseholder does not comply with the breach notice, apply to the First-tier Tribunal (Property Chamber) for a determination that a breach of the lease user covenant has occurred. The Tribunal considers the evidence and makes a finding. A Tribunal determination of breach is an important step — it establishes the breach legally and is the foundation for more serious enforcement if the leaseholder continues.
County court injunction
Where the leaseholder continues the Airbnb operation after a Tribunal determination of breach, the RTM company can apply to the county court for an injunction requiring the leaseholder to cease and desist. Breach of a court injunction is contempt of court — it is the most powerful enforcement tool available and is taken seriously by the courts. Most leaseholders comply at or before the injunction stage.
Forfeiture proceedings (last resort)
In the most extreme and persistent cases — where a leaseholder continues to operate an Airbnb in defiance of a Tribunal determination and a court injunction — forfeiture proceedings may be available. The court retains discretion to grant the leaseholder relief from forfeiture where they comply, so forfeiture is rarely the actual outcome. But the credible threat of forfeiture is a significant lever. Legal advice is essential at this stage.
Subletting vs Short-Term Letting: Different Rules Apply
Long-term subletting — where a leaseholder lets their flat to a tenant on an assured tenancy — is legally distinct from short-term Airbnb letting. The two are often confused but the legal position is different:
- Long-term subletting with lease consent: many leases permit subletting with the landlord's or RTM company's written consent, not to be unreasonably withheld. Where a leaseholder applies for consent and meets any reasonable conditions (providing the tenant's details, confirming the tenancy term), consent should be granted. Withholding consent without good reason exposes the RTM company to a challenge.
- Long-term subletting without consent where it is required: a breach of the lease, but typically a less urgent and less disruptive breach than Airbnb. The enforcement process is the same — breach notice, Tribunal determination — but the practical problems for other leaseholders are generally less acute.
- Short-term letting (Airbnb): the "private residence only" or "no business use" covenant is the relevant restriction, not the subletting clause. This is a different breach, typically more serious in its practical impact, and the enforcement basis is clearer where the wording of the user covenant is strong.
For how to handle noise complaints that arise from short-term let guests, see Noise Complaints and Nuisance in Blocks of Flats: The RTM Director's Legal Position. For how short-term letting affects the block's buildings insurance, see Block Insurance: What the Policy Must Cover. For the managing agent's general lease enforcement toolkit beyond Airbnb, see Communal Areas in Blocks of Flats: Who Is Responsible?
Frequently Asked Questions
In most cases no. Most long residential leases contain a user covenant requiring the flat to be used as a private residence only. Short-term letting through Airbnb and similar platforms breaches this covenant because it constitutes commercial use as guest accommodation rather than use as a private dwelling. The RTM company can enforce through a formal breach notice and, if needed, a First-tier Tribunal application for a breach determination. In London, short-term letting above 90 nights per year also requires planning permission — which most borough councils will not grant for residential blocks.
Under the Deregulation Act 2015, residential properties in Greater London can be used for short-term letting for up to 90 nights per calendar year without planning permission. Above 90 nights, planning permission for a change of use is required. Most London councils will not grant this for purpose-built residential blocks. Crucially, the 90-day rule is a planning restriction — it does not override the lease. A leaseholder with a "private residence only" covenant in their lease breaches that covenant from the very first Airbnb booking, regardless of whether they stay under 90 days.
Through the lease user covenant. The sequence is: gather evidence of the short-term letting activity before any formal step; serve a written breach notice citing the specific lease clause and requiring cessation within 14 days; if the leaseholder does not comply, apply to the First-tier Tribunal for a determination that a breach has occurred; if the breach continues after a Tribunal determination, apply to the county court for an injunction; and in the most extreme persistent cases, commence forfeiture proceedings. Start formally and early — informal letters that are ignored weaken enforcement later.
Dated screenshots of the flat's listing on Airbnb, VRBO, or Booking.com showing the address, photographs, availability, and reviews; written statements from other leaseholders or residents who have observed short-term guests; building access records showing unusual patterns if available; and any correspondence from guests who have contacted the building management. Gather this before serving the breach notice — once the notice is served, the leaseholder may remove the listing. Establishing that the flat has been listed and used for short-term letting is sufficient; proving every individual booking is not required.
It depends on the lease. Many residential leases permit subletting with the landlord's or RTM company's written consent (not to be unreasonably withheld). Where a leaseholder applies for consent and meets reasonable conditions, consent should be granted. Where a leaseholder sublets without seeking consent in a lease that requires it, this is a breach — but a different breach from Airbnb with a different legal basis. Where the lease absolutely prohibits subletting, any subletting is a breach. Where the lease is silent, subletting is generally permitted under English law. Always read the specific lease clause before advising on subletting.
Dealing with an Airbnb in your block that nobody is acting on?
Neon handles lease covenant enforcement as a standard part of block management — breach notices, Tribunal applications, evidence gathering. If your current agent has received the complaint and nothing has happened, that is a management failure. Talk to us about taking over and dealing with it properly.
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