Letting your home on Airbnb - does your mortgage lender give permission?

Pixie5740

It sounds like what you are trying to do is what a lot of people in Aberdeen do every two years during Offshore Europe except you've been honest and told your lender.

I wonder if their insurance would pay out if there was a fire, burglary or if someone hurt themselves whilst renting their house?

I actually had a colleague who packed his wife and 4 children into a caravan to live in the lane behind their house during Offshore Europe just so that he could let his house out for the week.

clippy_girl

I rent my spare room out on airbnb. when I got my mortgage they consented to me having a lodger- they were not arsed, just wanted her to sign something about moving out if the house was repossessed. I have not told them I rent on airbnb, the guests have no right to overstay. If they do they will find their stuff on the street and the locks changed. Airbnb have also just changed their terms so now if a guest overstays, they will charge their credit card 2 x the nightly rate per night overstayed. that should get them out.

I am using rent a room scheme although I may have a little tax to pay if I carry on having lots of guests over winter. I already do a self assessment so not concerned about this as it's straightforward.

Insurance is trickier but you can get some that will cover you, I looked on the airbnb forum at the London group and they recommended some policies (yes they are more but nowhere near high enough for it not to be worthwhile).

I am really enjoying it so far

toastiechar

Thank you clippy_girl, it's good to hear from someone having some success!

Brock_and_Roll

As a long time B&B owner, host of student families and host of lodgers the whole situation can be a real pain for those who want to play by all the rules.

However, my advice would be absolutely 100% straight on the tax and the insurance. My wife operates the "rental" business and fills in a self assessment return every year. Secondly, with regards to insurance, it is really hard to find a policy that allows such short term lets and it may be necessary to buy specialised B&B insurance which is comprehensive, but expensive. Alternatively, I have in the past bought separate buildings and contents insurance or even at times "taken a view" and gone without contents insurance - but not worth the risk of going without valid buildings insurance for obvious reasons.

As for the banks and building societies the reality is that there are only likely to be issues if something goes wrong. When we bought the current B&B it had been trading for many years, had a long term lodger in situ and blooming great signs up outside...but neither the surveyor nor the lender mentioned it and have not since.

Rambosmum

When we were with Natwest we had lodgers and also rented the place out from time to time. We were told they didn't grant permission for such things but this was because they didn't care about short term rentals, anything under 30 days was of no concern to them. And lodgers were also of no concern. I spoke with several people at NatWest and got told the same by all of them. When we switched to Halifax they said similar.