Lavanda platform to counter subletting breaches

Britain: Start-up Lavanda is to launch Europe’s first short-term rental platform for private rental sector tenants to solve tenancy breaches from subletting.

Lavanda Residential, a service set up by the London-based property management company, is the result of a strategic partnership agreed with industry experts JLL and global asset manager Aberdeen Standard Investments.

Both tenants and landlords using Lavanda’s service can log into an app in which the building managers allocate a number of a days in a year in which a tenant can legally sublet a property.

The recently-launched service aims to provide benefits to both landlords and tenants alike.

Tenants can lower their costs of living by monetising periods of “slack capacity” in their rented homes, and landlords can take a percentage of the revenue generated when a tenant sublets a property.

Trials of the platform are currently taking place across three private rented sector blocks, which are home to more than 470 different properties. Two of the trials are in London, while the other is being carried out in Leicester.

The property industry has experienced growing demand for compliant solutions to short-term rentals in a bid to find solutions to “illegal Airbnbing”, a practice in which tenants at a rented property sublet to others without gaining permission from a landlord.

Lavanda founder Guy Westlake said: “Short-term rentals are shaping the future of residential property, but to date they have been happening under the radar, causing unnecessary risks for both residents and landlord.
Westlake added Lavanda would look to roll out its platform more broadly across the UK and Europe.
 
JLL currently lets and manages over 5,000 residential units in the UK, while Aberdeen Standard Investments oversees £44bn worth of real estate assets across the UK, Europe and Asia.
The company is planning to achieve a 20 per cent increase in yield for landlords while at the same time allowing tenants to have a legitimate source of income from short-term rentals.