Airbnb is a popular short-term rental portal. Owners and landlords can advertise their properties on the site where people looking for a place to stay for one night or more will see the ad and (hopefully) make a booking. In busy tourist areas it is a useful way of making money on the side if you have a spare room or a vacant home for a few weeks, but there are a lot of landlords who use the site to let multiple properties out on a short-term basis.

HMRC on the Warpath
Accountants are now warning landlords that HMRC are about to target anyone making extra money from letting out properties via Airbnb. Any money earned from property is classed as income and must therefore be declared to the tax man. If you are letting out properties via Airbnb, you run the risk of a fine if you don’t declare this income.

“HMRC are under tremendous pressure from the government to increase the tax revenues collected and if they believe that you are deliberately withholding information about a source of income they will look to penalise you,” says Chas Roy-Chowdhury from the Association of Chartered Certified Accountants (ACCA).

Taxable Income from Property
If the rent you receive is a secondary income, you will probably have tax to pay on it, but if you are not sure whether it is taxable or how to go about declaring it to HMRC, it is a good idea to consult with a qualified accountant.

Subletting a property without permission from the landlord is forbidden. Most landlords include a clause in the tenancy agreement to discourage a tenant from doing this, but it doesn’t always stop the practice from happening, particularly in areas of high demand. In the UK subletting a property can cause all kinds of problems, not least property damage, but in the U.S., subletting is often illegal.

A New York City landlord is suing his tenant after she sublet his apartment without permission and he was fined $61,250 by building inspectors for turning the unit into an illegal hotel.

Landlord Liable for fines
According to local law, the landlord is strictly liable even though the tenant has caused the violation and the landlord was unaware of the problem. In his defence, the landlord says he had no idea the tenant was advertising the unit on Airbnb and because the apartment building didn’t have a doorman, it was difficult to monitor who was going in and out of the unit.

Checks Carried out by Building Inspectors
Short-term renters were found in the apartment numerous times when checks were carried out by city inspectors. The tenant claimed they were friends and family, but at least one group of five said they had found the rental on Airbnb.

The landlord is hoping to claim back $300k to cover his fines and legal fees. He also wants a court order in place to stop the tenant renting out the apartment again.

Thames Valley Police are urging landlords to help them tackle the issue of modern slavery. They estimate that there are around 13,000 victims scattered across the UK and very often hidden in plain sight. Anyone trafficked into slavery in the UK has to live somewhere, so landlords and letting agents are in a prime position to be able to spot the signs.

“We know victims of modern slavery are often forced to live in accommodation with others – frequently in large groups which causes overcrowding,” says Victoria Butler from Thames Valley Police Modern Slavery intelligence unit.

Signs of Modern Slavery
• Frightened and withdrawn occupants who show signs of physical abuse
• The occupants of a property are not those who signed the tenancy agreement
• Occupants of the property don’t have identification documents or a passport

Modern slaves tend to be more prevalent within minority communities, but they may also be classed as vulnerable adults or people living on the fringes of society. Children or adults may be trafficked into domestic servitude, sexually exploited, or forced to work for very little money. They will usually have very few personal effects, be unable to travel freely, and be in a poor physical condition.

Contact the Police
Victoria Butler from Thames Valley Police says: “I would ask any landlord or letting agent to ensure they know exactly who is renting their premises. If they have any concerns about the welfare of those living and working there, or suspicions about the financial arrangements, they should contact police.”

A survey carried out by leading insurance provider has revealed that 43% of tenants would be willing to pay more rent if their landlord gave the green light to more personal decorative schemes. On average, tenants said they would pay an extra £149 a year, which equates to £530 million in extra revenue for the private rental sector.

Keeping it Neutral
Currently, only 2% of tenants are allowed to decorate their property how they like, but with so many living in rental accommodation for more than three years, it is perfectly understandable that they want to be able to personalise their home. In many cases, landlords opt for neutral colours when decorating buy to let properties, so tenants have to settle for boring magnolia and cream.

What Else Can’t Tenants Do?
There is a long list of other things landlords stipulate tenants can’t do, including hanging TVs on the wall, fixing pictures and mirrors using screws, and using blue-tack to stick posters up. Interestingly, although only 28% of tenants ask their landlord if they can redecorate, 76% of landlords agree they can, even when it is explicitly forbidden in the tenancy agreement.

“Landlords who allow tenants to personalise their property could be favoured over those who don’t and may be able to command a higher rental price,” says David Hadden from Endsleigh.

“If tenants feel at home in their property they may also have longer tenancies.”

So, would you let your tenants decorate if they were happy to pay extra rent for the privilege?

Police in Yeovil, Somerset, have raided a series of private rental properties believed to have been used as brothels. So far so good, but one surprising outcome of the raid is that the police apparently think landlords are responsible for what tenants get up to inside their rental homes.

Police Raids on Landlord Properties
Following the raids, which took place on November 2nd and included a full contingent of police riot vehicles, members of the local fire and rescue, environmental health officers, and numerous bodies on the ground, a spokesperson from Avon and Somerset Constabulary released a statement to the local media:

Landlords Responsible for Their Premises
“Landlords need to take a degree of responsibility for insuring that their premises are safe. They’ve got to make sure that their premises are up to a certain standard.

“This means that all appropriate taxes are being paid by tenants. It also means ensuring their premises are being used for the reasons they’re being rented out for. If it’s a domestic property it shouldn’t be used for a business. Landlords need to make sure whatever is happening is legal.

“We’re taking an approach to say that landlords need to take a degree of responsibility for what is happening. This multi-agency response came after events last month. We used those events to gather intelligence, to check other properties and to check they are being used legally.”

So if that statement is taken at face value, landlords are now expected, amongst other things, to check whether their tenants are paying their taxes?