The upcoming implementation of the Renter’s Rights Act results in many changes to private renting sector, you can read more about them here. Consequently, some landlords are tempted to consider switching from the traditional landlord- tenant model to the Airbnb one.
What is the difference between the traditional landlord-tenant relationship and Airbnb?
The traditional landlord tenant model is governed by residential tenancy laws such as the Renter Rights Act 2025, and the Housing Act 1988. Many believe it reduces flexibility and increases obligation. This model typically involves months or even year long occupancy during which the tenant gains exclusive possession of the property. The contract defines rent, repairs and deposit protection.
In case of Short-Term Letting “Airbnb” model guests do not have exclusive possession but rather license to occupy for a short stay usually for few days or weeks. It is governed by hospitality and short term let regulations.
This model also impacts management of the property. In the traditional model, a landlord collects monthly rent, handles repairs when needed and conduct inspections. While in the Airbnb model there is hospitality style management, which involves much more day-to-day communications, management of check ins and check outs, cleaning between stays as well as other business/ operational services.
Which model to choose?
Despite Airbnb model being focused on the short term lets rather than one consistent tenant it could offer more control over the property as there are no long-term tenant rights attached to guests. The owner can also decide when the property is available and who can stay which can include prohibiting pets. There is no rolling tenancy with two months’ notice and dynamic pricing as opposed to rising rent once a year. Choosing this model also allows to avoid bureaucratic burdens such as complying with National Landlord Registration, Decent Homes Standard or Awaab’s Law.
However, if you are choosing this model to have more control over your property it might be temporary solution as short term lets become increasingly more regulated. Additionally, short-term letting can become tenancies by nature if the stays are long, agreements poorly drafted and the arrangement resembled residential tenancy. Therefore, you will not avoid the duties if it falls into the scope. It is also volatile source of income dependent on tourism, seasonality and demand. It might also lead to high costs of maintenance of such property to be ready for new guest.
However, the Airbnb model is not a substitute for private renting. It must be a genuine BnB style letting, intended for short term use coupled with hospitality – simply trying to privately rent your home, by using Airbnb as a platform to circumvent the new regulations will not be seen favourably by a Court, and could still imply a tenancy being created.
Therefore, if you do intend to switch to a hospitality model, then now may be the time to do so, but it should not be used as a substitute as that could attract fines and penalties.
If you have any queries, please do contact our Property Litigation team on 0345 646 0406 or fill in our online enquiry form and we will be in touch.