Holiday rentals in a block of residential flats

exiled_red

I live in a complex with a number of blocks of flats, and have noticed recently that in some of the owners of other blocks of flats are renting out their properties as holiday lets through websites such as Airbnb. It seems that they have started putting up external key safes next to the main external door of the building with keys to this door and the door of the flat.

I was wondering if/how this might affect the insurance policies of other residences of the building as I am concerned that other owners in my block might start doing similar.

huckster

Would not affect own individual flats Insurance for Buildings or Contents, as you have your own door with a lock.

But whoever owns some of the flats should be interested in the risks that are being taken. Short term letting like this can come with problems. I remember talking to an Insurance client who found that a lady in a flat opposite was having numerous male visitors to her flat on a daily basis. I think he knew what was going on, but was too polite to say so. He just wanted to know what the Insurance implications were for his flat, by having short term letting going on, by leaseholders who just wanted to earn as much as possible.

You need to take this up with freeholders/management company, as this short term letting might be against the leasehold terms. Quite often with flats, there are terms about this short term letting to stop problems happening.

exiled_red

Thanks that is useful to know. The flats are all individually owned and there is a management company employed by all the owners to look after communal areas and costs of this are split equally between the flats. The building insurance is arranged jointly through the management, while contents is bought on an individual basis. Do these type of lets still count the block as resdiential though or by letting out though Airbnb would that make some commercial which could have an impact on building insurance?

While this isn't something that currently affects my block it could easily do so in future and I would not be happy if someone was making a key to the main door so readily available, I would also be concerned about any damage done to communal areas by people staying at the holiday let costing me money to repair.

huckster

Should not affect you as an individual leaseholder, BUT if the risk is different to what the Insurers were told when it was taken out, then if say a incident took place because of a changed residential position, the Insurers might not be very happy. Whether they would refuse to pay out or cancel the Insurance, would depend on what they found. The management company would be legally responsible, if they knew about the situation or should have known about it, but did nothing.

teddysmum

This may be of interest to the local council as I believe some limit the number of permanent or holiday type accommodations in certain districts ,as they wish to preserve their permanent residential or holiday area status.