British start-up Lavanda is set to launch Europe’s first short-term rental platform for tenants in the private rental sector in an attempt to solve tenancy breaches resulting from subletting.
Lavanda Residential, a new service from the property management company based in London, is the result of a strategic partnership struck with industry experts JLL and global asset manager Aberdeen Standard Investments.
Both tenants and landlords using Lavanda’s service log into an app in which the building managers can allocate a number of a days in a year in which a tenant can sublet a property in a legal way.
The new service promises benefits to both landlords and tenants.
Tenants can reduce their costs of living by monetising periods of “slack capacity” in their rented homes, while landlords can take a portion of the revenue generated from a tenant subletting a property.
Trials of the platform are 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 another is taking place in Leicester.
The property industry has seen growing demand for compliant solutions to short-term rentals in a bid to find solutions to “illegal Airbnbing”, a practice that involves tenants at a rented property leasing subletting to others without permission from a landlord.