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Remus2004
Remus2004, Barrister
Category: Property Law
Satisfied Customers: 70414
Experience:  Over 5 years in practice.
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Hi can I run a B&B under my assured shorthold tenancy with

Customer Question

Hi can I run a B&B under my assured shorthold tenancy with the landlord's consent?
Submitted: 3 years ago.
Category: Property Law
Expert:  Remus2004 replied 3 years ago.
Thank you for your question. My name is Jo and I will try to help with this.
Do you mean can you sublet to lodgers?
Customer: replied 3 years ago.
Thanks Jo

Essentially we are taking an AST on a large house which has a couple of spare bedrooms ideal for a small B&B venture. This would be incidental to the use as a private dwelling and would not require change of use or attract business rates. The landlord has consented however the letting agents don't seem to think it can be regulated by the AST as it is a business use albeit de minimus and akin to working at home.

What advice can you offer to help us get the AST in a shape that allows us to do the B&B?

Thanks

Mark
Expert:  Remus2004 replied 3 years ago.

There is nothing to stop you doing this legally.

However the problem you would have is that if there is a falling out between you and the landlord the agent is correct that you would be unlikely to be able to rely on the AST and nor could the landlord. That would be one for a judge to decide as to whether what is actually happening is so removed from an AST that it strikes to the heart of the agreement and makes the agreement unenforceable by either party.

The only way of knocking this into shape would be to do it in the form of a commercial lease.

There are another couple of potential issues and they are that if the landlord has a mortgage on the property his lender will not usually allow subletting and will not allow a commercial lease. Obviously, if the landlord does not have a mortgage, that is not an issue.

Can I clarify anything for you?