As a landlord, it’s likely you invest considerable time in selecting suitable tenants. There are instances where tenants choose to sublet their living space to reduce expenses, irrespective of your approval. Usually, this is the case when a tenant, under a long-term agreement, expects to leave their home for an extended duration. Choosing not to break the lease, they frequently regard subletting as a more advantageous solution. This document will facilitate your understanding of this matter and assist in finding an agreeable solution for everyone.
Subletting occurs when a tenant leases a segment of their home, like a bedroom, to another individual while continuing to live there. This method might seem advantageous for tenants aiming to make some extra cash, yet it frequently alarms landlords. Property owners must meticulously evaluate the positives and negatives of granting their tenants the right to sublet. Let us examine these aspects more closely.
Who is Responsible?
Subletting is a prevalent method that occurs via two avenues. 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. Conversely, an illegal sublet occurs when the tenant leases the property to someone else without gaining the landlord’s consent.
In matters of subletting, the original tenant carries the legal duty to comply with their lease and guarantee the complete rent payment. Hence, the original tenant retains the ultimate responsibility, even in scenarios where subletting is sanctioned. Smooth operations notwithstanding, subletting demands substantial trust in the original tenant to ensure the subtenant complies with the lease terms.
Reasons Not to Allow Subletting
Allowing subletting is a decision that falls exclusively to you in your role as either landlord or property manager. However, one should note that exceptions exist where subletting is constrained by homeowners’ associations or specific rules. If such agreements preclude subletting, this may serve as the only justification for you to restrict your tenant from subletting the space.
You might also disallow subletting due to the challenge of rent collection if the subtenant fails to pay and your original tenant is not around. In such cases, your recourse would be to chase after the original tenant for payment, a task that can be daunting and time-consuming. When dealing with an illegal sublet, it’s critical to refrain from taking payment from the subletting tenant. Taking rent from a subletting tenant, regardless of legality, might inadvertently afford them rights over the property, which could then only be revoked by eviction.
Reasons to Allow Subletting
Some property managers endorse subletting to avoid vacancy in their properties. Especially so if a tenant is going to be away for a considerable duration. Preserving a positive tenant relationship is important, and facilitating them in tailoring arrangements to their requirements is a significant means to that end. 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
Having a clear subletting agreement that delineates your expectations and the responsibilities of your tenant is always advisable. Whether you endorse subletting or not, it’s fundamental to incorporate a clause in your lease specifying the allowed activities and their respective conditions. Engaging in straightforward communication can help avert confusion and foster a joyful and smooth rental journey for all parties.
Should you be contemplating the approval of subletting, adopting the necessary safeguards for both yourself and your property becomes crucial. Screening the subletting tenant thoroughly, as you would do for any prospective tenant, should be among the initial steps taken. Once a suitable tenant is chosen, it’s necessary to formulate distinct expectations and directives for the subletting setup. The process entails devising and endorsing a sublease agreement that encapsulates the entire terms and conditions governing the subletting setup. Implementing a sublease agreement can forestall any forthcoming dilemmas or disputes.
Do you have queries on permitting your tenant to sublet your property? No worries, Real Property Management Excelled has got you covered! Contact us online or call 253-275-5999 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 Federal Way or nearby.
Originally Published on April 1, 2022
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