When to Consider Allowing a Sublet

Is your tenant looking to move out, but still has some time left on their lease? Or are you looking to take on a new tenant while the existing one is away for a few months? If so, then a sublet might be the answer.

The question is, when should the landlord consider allowing a sublet? Let’s take a look.

What is a Sublet?

Before we dive deeper, let’s start with a brief look at what a sublet is. Put simply, a sublet (or subleasing) involves the original tenant signing a new agreement with another tenant to take over the rental property for a specific period of time. Then both the original tenant and the subtenant sign a legally-binding agreement with the landlord for the period.

So, what are the benefits of a sublet for the landlord?

Benefits of Allowing Sublets

There are a few advantages to allowing sublets in your rental property.

• The tenant’s original lease is fulfilled – The subletting tenant pays the original renter a fee to move in and cover their rent. This ensures the original tenant’s lease is honored and your rental income is safeguarded.
• No downtime – Your property is in use for the entire term of the lease.
• Affordability – Subtenants often benefit from lower rents than they would pay for other available units due to the shorter length of tenancy.
• No void periods – Your property doesn’t have to wait to find a new tenant when the current one leaves.

What to Consider When Allowing a Sublet

If a sublet is on the table, there are a few things the landlord needs to consider.

1. Check Your Lease Agreement

It’s important to check both your lease agreement with the original tenant and the local landlord-tenant laws before allowing a sublet. As the landlord, it’s your responsibility to ensure the sublet is legal and approved by you.

2. Review the New Tenant

Just as you would with any other new tenant, it’s important to review the subtenant thoroughly. Get references, check credit history and inquire about employment status and rental history to make sure they are a suitable tenant.

3. Update the Lease

You’ll need to update the lease and the rental agreement accordingly. A few changes that need to be included are:

• Update the list of tenants
• Term of tenancy
• Security deposit
• Acceptance order
• Furnishings
• Lease assignment and subletting rules

4. Set the Rent

Setting the rent can be a tricky task. You may need to adjust the rent according to the market rate and the length of stay for the subtenant. Make sure you set a rent that would be fair to the originally renting tenant, too.

5. Check the Terms of the Sublease

You’ll want to check that all of the terms and conditions of the sublease – such as repairs, yard maintenance, and parking – are fair to both parties. Agree on the terms in writing before the tenant moves in.

6. Collect Evidence of Subletting

Finally, you should take evidence of the subletting process, including photos of the property and copies of documents, so that either party can settle any disputes in the future. That’s especially important when the relationship between the two parties isn’t as strong.

The Final Word

In conclusion, when considering allowing a sublet for your rental property, make sure to review your lease agreement, both the original tenant and the subtenant, agree on the terms and conditions of the sublease and collect proof of subletting. Doing this will help ensure your rights as a landlord are protected and minimize the potential for disputes.

When done properly, a sublet can be incredibly beneficial for landlords and tenants alike. It’s a great way to attract higher-quality tenants and increase a landlord’s income. So it’s worth taking the time to understand the process and manage it properly.

How long does a tenant have to be subletting before their landlord needs to be aware?

In most cases, a tenant must inform their landlord of any intent to sublet before taking action. Depending on the terms of the lease agreement, a tenant may be required to get the landlord’s written consent prior to subletting. If a tenant does not abide by the terms of the lease or applicable state and local laws, they may be subject to legal action taken by the landlord.

“What restrictions exist for subletting rental properties?”

1. Most rental agreements include a clause with rules and regulations that pertain to subletting. In general, landlords must give tenants written permission before they can sublet a rental property. This permission generally includes a form for the tenant to submit to the landlord for approval.

2. Many cities and states have specific laws on the books that deal with subletting, which may be more restrictive than the conditions of a rental agreement. For example, certain jurisdictions require that a tenant notify the landlord or real estate agency of any sublets 30 days in advance.

3. Tenants may also be required to provide the landlord with proof that the tenant has obtained appropriate insurance to protect their rental property while it is sublet.

4. Landlords usually reserve the right to reject any subletting request based on any grounds they deem to be reasonable. Generally, this means that the tenant seeking to sublet must have an income that is sufficient to pay rent, an adequate credit score, and a history of no rental landlord disputes.