For rental property owners, finding the right tenants typically involves a lot of work. Tenants might sometimes sublease their place to save money, with or without the landlord’s approval. This scenario commonly unfolds for tenants who have entered into long-term leases but will be away from their property for a long time. Preferring not to dissolve the lease, tenants could find subletting to be a superior option. This guide aims to assist you in maneuvering through this scenario and discovering a mutually beneficial solution.
Subletting involves a tenant renting out part of their home, such as a bedroom, while they still reside in the premises. While tenants might find this approach convenient for generating extra money, it often leads to apprehensions for property owners. 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?
There are two primary ways in which subletting happens. One way is through a legal sublet, where the landlord allows the tenant to sublease part or all of the property to someone else. The other scenario is an illegal sublet, where the tenant subleases the property to another tenant without the landlord’s permission.
With subletting, it’s vital to understand that the original tenant is legally responsible for observing their lease agreement and making sure the full rent is paid. Thus, regardless of whether subletting is authorized, the original tenant continues to hold final accountability. In the smoothest scenarios, subletting still entails a hefty trust in the original tenant to ensure their subtenant observes every term of the lease agreement.
Reasons Not to Allow Subletting
You hold the complete authority to decide on allowing subletting as the property manager or landlord. However, it’s significant to acknowledge that sometimes, due to homeowners’ associations or certain rules, subletting can be restricted. In case these agreements disallow subletting, this could be the exclusive rationale for preventing your tenant from subletting the property.
Another reason you might consider prohibiting subletting is the inability to collect rent if the subtenant ceases payment while your original tenant is absent. Therefore, you would be forced to chase down the original tenant for payment, which can be a lengthy and challenging process. If a sublet is unauthorized, it’s imperative to decline any rent payments from the subtenant. Accepting payments from a subtenant, even under illegal conditions, might confer rights to them on the property, requiring eviction to end such claims.
Reasons to Allow Subletting
Various landlords approve of subletting to ensure their units stay occupied. This applies mainly if a tenant anticipates being away for a lengthy period. Fostering a positive relationship with your tenant is crucial, and permitting them to make suitable arrangements is an excellent method to achieve this. Letting your tenant sublet contributes to avoiding vacancies and turnover costs, contingent upon the rent being paid punctually every month.
Subletting Agreements
A specific subletting agreement detailing your expectations and the responsibilities of your tenant is invariably beneficial. Even if you’re indifferent to subletting, having a section in your lease that clearly describes permitted actions and their applicable times is vital. With open and clear communication, misunderstandings can be bypassed, ensuring a harmonious and tension-free rental experience for both landlord and tenant.
If you’re leaning towards allowing subletting, it’s vital to take crucial precautions to ensure your and your property’s safety. Initially, it’s important to thoroughly screen the subletting tenant, similarly to how you would evaluate any potential tenant. Upon finding a fitting tenant, it is vital to delineate clear expectations and norms for the subleasing agreement. Accomplishing this requires the formulation and signing of a sublease agreement, which specifies every term and condition related to the subletting arrangement. 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 Allegiance has got you covered! Contact us online or call 786-206-8611 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 Hallandale or nearby.
Originally Published on April 1, 2022
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
