It's all the rage - but you could face a tax bill and invalidate your insurance
Homeowners hoping to join a boom in letting out their properties online risk being hit with huge fines, a tax investigation and even having their mortgages revoked. Tens of thousands of property owners are signing up to websites that let them make extra cash by renting out a room or their whole home to tourists for a day. This is done through new websites, such as Airbnb and HouseTrip, which act as middlemen between home-owners and travellers. It has proved such a success that the number of properties being put up for rent on Airbnb has increased by 66 per cent in the past year. There are an estimated 60,000 spare bedrooms, granny flats and holiday homes in places from Newcastle to Newquay for rent, as well as many more overseas. But experts fear owners have no idea that renting out their homes like this can put them in peril of having their mortgage revoked and their home insurance cancelled, as well as being hit with a huge tax bill and even an investigation. That’s because short-term rents are against the terms and conditions of many mortgage and insurance contracts......Read More Here