To AirBnB or not to AirBnB? A Guide for Homeowners and Renters in Jersey – Real Estate & Construction

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The JEP reported earlier this month that Jersey has seen an explosion in the number of Airbnb properties listed on the island with an increase of over 800% over the past four years. For those unfamiliar with the website, Airbnb allows people to offer short-term accommodation or homestays for an amount of 3% of the booking subtotal.

At the time of writing, 166 Jersey homes are listed on Airbnb with a diverse range of accommodations, from panoramic views of 1930s Jessica’s house over St Aubins Bay to a private bedroom in the traditional property granite from Chris and Kate to Trinity.

While the stats are great news for tourism, it is essential that any homeowner looking to register with Airbnb to host short-term accommodation complies with all applicable restrictions.

Title restrictions

When the ownership is a transfer of shares or a flying freehold apartment, it is necessary to ensure that the relevant statutes / declaration of co-ownership and that the rules and regulations of the house do not have any restrictions on rentals. Airbnb. With Airbnb growing in popularity in recent years, these restrictions are starting to appear more often in apartment building legal documents.

Purchase assistance programs

For those who have purchased their home using an assisted buying program, it is highly likely that your program documents prohibit any form of rental or sharing of occupancy without first obtaining consent under the terms of the program, which may or may not be granted.

Loan restrictions

Another consideration for homeowners is whether a mortgage or loan in place on the property contains restrictions on any form of leasing or sharing the occupation of the property without the consent of the lender. These restrictions are very common when a buyer mortgage has been entered into (rather than a buy to rent).

Failure to comply with the mortgage conditions and obtaining the lender’s agreement could trigger an event of default which could result in the lender being able to recall the loan.

Rental restrictions

If you are renting out your property, it is essential to determine whether you have the authority to sublet the house or a room within the property. Often residential leases in Jersey contain restrictions on subletting, either absolutely or without obtaining the prior written consent of your landlord.

Listing your property on Airbnb in violation of the terms of your lease can have serious consequences that could potentially cause the landlord to seek a court order for early termination of the lease, recovery of the property and a claim for damages and interest to compensate for any loss. they suffered.

Insurance Considerations

In addition to the restrictions set out above, it is necessary to inform your home and content insurer that you are considering signing up with Airbnb to accommodate paying travelers. Failure to seek the insurer’s prior consent can lead to the risk that the insurance company will refuse to pay if the property is used against the terms of the insurance policy.

Tourist restrictions

Jersey law also seeks to regulate the tourism industry and therefore legislative restrictions are in place for those who intend to make accommodation available to tourists on the island. In Jersey, any accommodation provided as a reward must be registered for tourism, except in cases where the property is to be sublet to 5 people or less. Therefore, the current Tourism Act would restrict short-term accommodation at Jersey properties for more than 5 people through Airbnb, except when registered under the Tourism Act.

If you want to register with Airbnb, we recommend that you review all contracts and legal documents related to your property before doing so to understand what rules and restrictions may affect your ability to host. When there are no restrictions preventing you from hosting guests through Airbnb, it’s also worth remembering that any money you earn as a host is taxable income and must be reported.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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