Is the Property You Rent Out in the UK Really as Safe as You Think?

For many landlords, especially those living overseas, renting out a UK property feels like a safe, largely passive investment. The rent comes in, the managing agent sends occasional updates, and everything appears to be running smoothly.

But behind closed doors, a growing number of UK rental properties are being quietly turned into illegal Airbnb-style businesses - without the landlord’s knowledge, consent, or protection.

And the scale of the problem is far larger than most landlords realise.

The uncomfortable truth for UK landlords

Surveys of UK landlords suggest that around 68 percent have encountered unauthorised subletting, while approximately 20 percent have discovered their property listed online on short-term rental platforms such as Airbnb. At the same time, there are an estimated 450,000 short-term rental listings across Great Britain, with experts estimating that 5–15 per cent may be operating without the landlord’s permission.

That means tens of thousands of landlords may already have been affected - many without ever knowing it.

This isn’t a niche issue. It’s a structural weakness in the UK rental market.

Not a scam - until it is.

Most cases don’t start with criminal intent. A tenant rents a property on a standard long-term agreement, then quietly lists it online to “cover costs” or “make some extra income”. One guest becomes ten. One weekend becomes a full-time operation.

Before long, the landlord’s asset has become a revolving door of strangers.

In more serious cases, organised fraudsters use false or stolen identities to secure tenancies, immediately convert the property into a short-stay rental, and vanish once problems surface. Because short-term guests change constantly, these properties can operate undetected for months or even years.

Case study: the landlord who didn’t know for years

Consider the case of a UK landlord living overseas in the UAE.

The property - a two-bed flat in a major English city - had been rented out through a local managing agent. Rent arrived on time. There were no complaints passed on. Inspections were described as “satisfactory”.

What the landlord didn’t know was that the tenant had been subletting the flat on Airbnb almost continuously.

For more than three years, the property functioned as an unlicensed short-term rental. Hundreds of guests stayed there. Furniture was replaced cheaply when damaged. Neighbours complained - but not to the landlord. The managing agent rarely attended in person.

The truth only emerged when the local council contacted the landlord directly about breaches of short-term letting rules.

By that point:

• The property showed extensive wear and tear
• Insurance cover was invalid due to unauthorised use
• The landlord faced potential enforcement action
• Thousands of pounds in income had been earned by someone else

The tenant disappeared. The landlord paid the price.

The risks most landlords underestimate

The consequences of unauthorised short-term letting go far beyond lost control.

• Insurance may be void if a property is used as a holiday let without disclosure
• Legal limits apply, such as London’s 90-night rule
• Fines can reach tens of thousands of pounds
• Damage is often higher due to frequent guest turnover
• Mortgage and lease terms may be breached

Crucially, none of this requires the landlord to have done anything wrong.

Why overseas landlords are especially vulnerable

Landlords living abroad are at significantly higher risk. Distance limits oversight, inspections may be infrequent or superficial, and reliance on third parties creates blind spots.

Scammers and opportunistic tenants know this.

A property can look compliant on paper while operating as a full-scale short-term rental in reality.

“It won’t happen to me” is no longer a safe assumption

The growth of short-term rental platforms has outpaced regulation, enforcement, and landlord awareness. What once required complex arrangements can now be done with a smartphone and a lockbox.

With over two-thirds of landlords reporting experience of unauthorised subletting, the idea that this is a rare or unlikely risk no longer holds.

The uncomfortable question every UK landlord should now ask is simple:

Is the property you rent out really as safe as you think - or are you just lucky so far?

Speak to me about how other investments can yield better returns without the fear of being scammed.