Subletting is common among tenants who are looking to temporarily vacate a property. Let’s take a look at what subletting is, the legalities of it, and how to handle it as a landlord.
Contact your local Whitegates branch for expert landlord advice.
What does subletting mean?
Subletting is the process by which a tenant rents out a portion or the entirety of their rented property to another individual while maintaining a tenancy agreement with the landlord.
Typically, this results in the subtenant paying rent to the original tenant rather than directly to the landlord. The original tenant bears responsibility for the tenancy, which includes timely rent payments and property maintenance.
Subletting is slightly different from assigning a tenancy. When a tenancy is assigned, the new tenant takes over the tenancy entirely, assuming all the responsibilities and rights of the original tenant.
Related: How to manage multiple rental properties effectively
Is subletting legal?
Subletting is legal as long as the tenant has obtained written permission from the landlord to do so, or the tenancy agreement states that subletting is permitted. Tenants must ensure that the landlord is aware of and consents to the new occupant.
Some agreements may outright prohibit subletting. In this case, tenants must comply with this rule to avoid breaching their tenancy agreement.
How to prevent unauthorised subletting
As a landlord, it’s important to take preventative measures to ensure unauthorised subletting does not occur in your rental property.
Thoroughly screen tenants
One of the best ways to prevent unauthorised subletting is to conduct thorough tenant screening before renting out your property. Make sure to check references, credit history, and previous rental history to ensure that the tenant is trustworthy and reliable.
Include a clause against subletting
Make sure to include a clause in the tenancy agreement that explicitly prohibits subletting without your written consent. This will make it clear to the tenant that unauthorised subletting is not permitted.
Regularly inspect your property
Conduct regular property inspections to ensure that only the named tenants are on the premises. Look out for any signs of subletting, such as multiple sleeping arrangements or unfamiliar individuals accessing the property.
Related: 3 things to consider when expanding your property portfolio
How to handle unauthorised subletting
If you discover that your tenant has been subletting the property without your permission, there are several steps you can take to handle the situation.
Send a formal notice
Start by sending a formal notice to the tenant informing them that they are in breach of the tenancy agreement by subletting the property. Give them a specific period to rectify the situation or face potential eviction.
Request documentation
Ask the tenant for documentation, such as subletting agreements or communication with the subtenant, to gather evidence of the unauthorised subletting.
Eviction proceedings
If the tenant fails to comply with the notice and continues to sublet the property, you may need to start eviction proceedings. It’s crucial to seek advice from a trusted agent to ensure that you follow the correct procedures.
How to handle subletting requests
Unless the tenancy agreement clearly prohibits it, you cannot refuse a tenant’s subletting request without a valid reason. There are several important considerations you must make after receiving a request of this nature.
What does the tenancy agreement state?
The first step in handling subletting requests is to review the tenancy agreement thoroughly. Most standard agreements explicitly state whether subletting is permitted or not. If subletting is prohibited in the agreement, you have the legal right to reject any subletting requests.
What are their motives?
Open and transparent communication is key when dealing with subletting requests. If a tenant approaches you with a subletting request, take the time to discuss the reasons behind their request and their plans for the sublet. Understanding their motivations can help you make an informed decision and potentially negotiate an alternative solution that satisfies both parties.
Is the subtenant reliable?
Before granting permission for subletting, it’s essential to conduct thorough background checks on the proposed subtenant. Verify their identity, employment status, and rental history to ensure they are a reliable and responsible individual.
Related: Why two-thirds of landlords are moving to a managed let
Pros of subletting
Reduced vacancy periods
By allowing subletting, you can provide your tenants with more flexibility in their living arrangements. Therefore, if a tenant needs to move out temporarily for personal or professional reasons, they can sublet their space instead of leaving their tenancy. This can help prevent vacancies in your property and ensure a steady stream of rental income.
Tenant flexibility
Allowing subletting can enhance tenant satisfaction and retention. Tenants may be more willing to sign long-term tenancy agreements if they know subletting is an option, providing landlords with greater security.
Reduced risk of rent default
Subletting can allow the original tenant to share rental costs with the subtenant, making it easier for the original tenant to afford the rent and reducing the likelihood of late or missed payments. If the subtenant pays a security deposit, it can provide additional financial security for potential damages or unpaid rent.
Cons of subletting
Less knowledge of the subtenant
You may have less information about a subtenant’s behaviour and history. As an individual, they may not align with your standards or the original tenant’s behaviour, potentially leading to conflicts or issues.
Increased risk of property damage
Subtenants may not have the same level of investment in the property as the original tenant, perhaps leading to higher wear and tear or property damage.
Potential rental income issues
If the subtenant fails to pay rent, you must rely on the original tenant to cover the loss, which can be problematic if the original tenant is financially unstable.
Contact your local Whitegates branch for expert lettings guidance.
