The 90 Day Airbnb Rule and What it Means to YouElizabeth Hunston
Sept. 7, 2018, 3:27 p.m.
What is the 90-day limit?
In January 2017, Airbnb introduced a 90-day limit on ‘entire home’ listings in the Greater London area. This means a property can’t be let out on Airbnb for more than 90 days of occupied nights per year. Once your limit has been reached, Airbnb will automatically close bookings for your property until the end of the calendar year. The 90-day limit applies to both 90 consecutive days or 90 days spread throughout the year. This is commonly referred to as “the 90-day rule”.
In which cities does 90-day rule apply?
The 90-day rule relates just to Greater London. No other city in the UK currently has such a limit in place, but it is an ongoing discussion.
Why does the 90-day limit exist?
The 90-day rule was implemented to legalise short lets in London - before this rule was in place, technically homeowners needed to apply for planning permission to conduct short or holiday lets in their home. This is because of the Greater London Council (General Powers) Act 1973, which implemented a London-specific rule that meant it was not possible to conduct any short lets (any single stay of less than 90 days in duration) in the Greater London area.
Since then, a thriving, global home-sharing industry has emerged through such websites as Airbnb. In recognition of the benefits that the home-sharing industry brings to homeowners, guests and local economies the Deregulation Act 2015, was brought in to relax these rules. Now, homeowners are able to rent out their properties short term for up to 90 nights a year without requiring planning consent from the local council.
Why are people for or against the 90-day limit?
Some people think that limiting the number of days that a property can be “short-let” for is a good thing because it gives councils and communities a sense of control over what’s happening in the area. People are also concerned about the impact short letting has on housing supply. This is a lively debate, but the Institute for Public Policy Research has published research that shows it has little impact.
Other people say that the number of days a property is short-let for should not be limited because that is unfair on homeowners that are away from their property more often than that, and that it’s more important to focus on responsible hosting - ensuring that guests are compliant with rules and respectful of communities etc. This is also a lively debate.
What Airsorted thinks:
Tom Jones, Co-Founder at Airsorted explains "We’re pro regulation - we believe that control and visibility for a community is important. We do feel that 90 days is perhaps a little restrictive - other global cities, like Paris set the threshold at 120 days. Most of our hosts are away from their homes for longer than 90 days but can’t put the properties on the residential market because they need to come and go regularly, or because the total availability is unclear - i.e if they are waiting for the property to sell. We believe that as long as the hosting is done responsibly, the benefits to the community far outweigh any downside, so that’s what we focus on."
How can Airsorted help you manage the 90-day limit?
Airsorted is committed to providing an innovative, responsible and sustainable approach to home sharing. As experts in our field, we recognise the importance of complying with the regulations in each city where we operate – including London.
To help property owners in London manage the Airbnb 90-day limit and whilst maximising their earnings, we optimise the letting cycle by using a combination of long term, short term and holiday lets. We list on multiple platforms to help our hosts make the most of their properties.
This includes holiday lets on Airbnb, Expedia and Booking.com during peak times to maximise earnings in the high season, combined with longer lets through Zoopla or Rightmove for extended periods of 3 or 6 months during quieter periods. We also find long term tenants on classic AST contracts. This provides the ideal solution for hosts looking to rent out their home for longer than 90 days and that want to maximise returns across a year, while complying with the necessary rules and regulations.
Optimising the letting cycle in this way allows hosts to earn more money than traditional long term letting, because it means that they’re able to, fill void periods and take advantage of higher rate holiday lets during the peak seasons.
It's important to be aware and compliant when in comes to 90-day limit, but regulation is a good thing and there is still a lot of opportunity to capitalise through diversification of letting types. This fusion of letting types can be tailored to the hosts requirements of the property and our team will build and manage a cycle that works best for that home.
**This article is intended to highlight just some of the key issues involved with home sharing. It should not be taken as formal advice. If unclear on regulation in your city, you should always read up on the relevant authority websites and/or seek professional advice.**