Owning rental property often means dedicating significant effort to identify the ideal tenants. Tenants might sometimes sublease their place to save money, with or without the landlord’s approval. This often occurs if a tenant is bound by a lengthy lease yet plans to be absent from their residence for a significant time. Choosing not to break the lease, they frequently regard subletting as a more advantageous solution. This piece intends to guide you through this predicament and help identify a solution that satisfies everyone.
Subletting involves a tenant renting out part of their home, such as a bedroom, while they still reside in the premises. While offering tenants a chance to earn more, this practice can instigate concerns for those owning the property. As the owner of a property, it is vital to deliberate on the pros and cons of letting tenants sublease. Let’s delve deeper into some of these considerations.
Who is Responsible?
Subletting often unfolds through one of two scenarios. The initial method is a legal sublet, involving the landlord’s consent for the tenant to lease some or all of the property to a different tenant. Another form is the illegal sublet, where the tenant hands over the property to another tenant without securing the landlord’s approval.
In matters of subletting, the original tenant carries the legal duty to comply with their lease and guarantee the complete rent payment. Consequently, even when subletting is permitted, the ultimate responsibility rests with the original tenant. Even under the best circumstances, subletting requires placing significant trust in the original tenant to guarantee the subtenant adheres to all terms of the lease agreement.
Reasons Not to Allow Subletting
The decision to permit subletting lies entirely in your hands as the landlord or property manager. However, one should note that exceptions exist where subletting is constrained by homeowners’ associations or specific rules. If agreements like these make subletting impermissible, that could be your only reason to forbid subletting to your tenant.
Refusing subletting might also be prudent if, in the event the subtenant halts rent payments and your initial tenant is gone, you cannot pursue them for payment. In such cases, your recourse would be to chase after the original tenant for payment, a task that can be daunting and time-consuming. If a sublet is unauthorized, it’s imperative to decline any rent payments from the subtenant. Receiving rent from a subtenant, including in illegal situations, could inadvertently grant them rights to the property, necessitating eviction to resolve.
Reasons to Allow Subletting
Some property managers endorse subletting to avoid vacancy in their properties. This holds true especially when a tenant is expected to be away for a significant amount of time. Fostering a positive relationship with your tenant is crucial, and permitting them to make suitable arrangements is an excellent method to achieve this. Granting your tenant the permission to sublet can also serve to prevent vacancies and reduce turnover expenses, assuming timely rent payments each month.
Subletting Agreements
It’s highly recommended to establish a detailed subletting agreement that specifies your expectations and the duties of your tenant. Even if you’re indifferent to subletting, having a section in your lease that clearly describes permitted actions and their applicable times is vital. Through open dialogue, it’s possible to sidestep misunderstandings and guarantee a satisfying and relaxed renting situation for everyone involved.
Should you be contemplating the approval of subletting, adopting the necessary safeguards for both yourself and your property becomes crucial. One of your initial actions should be to diligently screen the subletting tenant, in the same manner as you would assess any potential renter. Upon finding a fitting tenant, it is vital to delineate clear expectations and norms for the subleasing agreement. The creation and signing of a sublease agreement, itemizing every clause and condition of the subletting contract, achieve this. The presence of a sublease agreement is instrumental in mitigating potential future issues or disputes.
Inquiries regarding allowing your tenant to sublease your rental unit? No worries, Real Property Management Ascension has got you covered! Contact us online or call 706-760-7912 to talk to a rental property expert today. Our team of pros is here to help you make the best decision for your property in Lafayette or nearby.
Originally Published on April 1, 2022
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