Skip to Content

Is It Ever a Good Idea to Let Your Tenant Sublet?

Malvern Tenant Handing Keys to a SubletterIf you are like most rental property owners, you screen and choose your tenants cautiously. Yet, some tenants may try to offset their rent payments by subletting to someone else – with or without your permission. Subletting often occurs when a tenant has a long-term lease but will be away from home for an extended period. Rather than break the lease, they could think that subletting is a preferable alternative.

Subletting may also occur when a tenant decides to rent out a bedroom or other part of the home while still dwelling there. Your tenant may not see any potential issues with this setup, but as a property owner, is it a good idea to allow your tenant to sublet? Let’s talk about some of the pros and cons of tenant sublets.

Who is Responsible?

Subletting always occurs in two main ways: a legal sublet, in which the landlord has permitted the tenant to rent all or part of the property to another tenant, and an illegal sublet, in which the tenant does not have permission. In any subletting situation, the original tenant remains responsible for upholding the lease terms they signed and for paying the entire rent. This is relevant in legal subletting cases. Even in the best of conditions, subletting necessitates putting a high level of trust in your original tenant to keep their subletting tenant in compliance.

Reasons to Say No

Enabling subletting or not is almost totally up to the Malvern property manager or landlord. There are a couple of exceptions where homeowners’ associations or other regulations restrict subletting a property. If subletting would violate such agreements, you may be able to ban your tenant from subletting your rental property for that reason alone.

Another potential reason not to allow subletting is if your original tenant is away and the subletting tenant stops paying rent, you cannot collect from them. As an alternative, you’d have to find and request payment from your original tenant, which might be a time-consuming and complicated task. If the sublet is illegal, it’s essential not to accept any payment from a subletting tenant. Taking money from a tenant, even an illegal one, may give that tenant rights to the property that you can only terminate through an eviction.

Reasons to Say Yes

Some property owners, on the other hand, may accept subletting to keep the property occupied, mainly if a tenant is absent for several months or more. There is value in maintaining a strong relationship with your tenant, and allowing them to make arrangements that will meet their needs is another good reason to say yes. Allowing your tenant to sublet may also help you avoid vacancies and turnover costs, as long as the rent continues to be paid each month.

Subletting Agreements

In any subletting scenario, it’s necessary to have a clearly-worded subletting agreement that includes your expectations and your tenant’s responsibilities. In reality, whether you allow subletting or not, you should have a clause in your lease that specifies what is allowed and under what terms.

If you choose to allow subletting, make sure to screen the subletting tenant the same way you would any other tenant before granting permission. At that time, create and have all parties sign a sublease agreement that explains the terms and conditions of the subletting arrangement. This may help provide extra protection for you and your property in the event of a crisis.

Do you still have concerns about whether you should allow your tenant to sublet your rental property? Contact Real Property Management Varanasi to talk with a rental property expert today!

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.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details