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. This scenario commonly unfolds for tenants who have entered into long-term leases but will be away from their property for a long time. Opting not to cancel the lease, tenants may see subletting as a more favorable choice. This document will facilitate your understanding of this matter and assist in finding an agreeable solution for everyone.
Subletting is when a tenant lets a portion of their home, for instance, a bedroom, to someone else while they still occupy it. Even though this can be a practical way for tenants to secure additional funds, it tends to cause unease for landlords. Property owners must meticulously evaluate the positives and negatives of granting their tenants the right to sublet. We shall now scrutinize some of these elements in detail.
Who is Responsible?
There are two primary ways in which subletting happens. The first is legally subletting, where the property owner gives the tenant permission to rent out either a section or the entirety of the property to another tenant. The second is an illegal sublet, characterized by the tenant renting out the property to another individual without the permission of the landlord.
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. Therefore, the original tenant remains ultimately responsible, even in situations where subletting is approved. 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
The prerogative to allow or disallow subletting is yours alone as the property manager or landlord. Nonetheless, keep in mind that in some instances, subletting could be limited by homeowners’ associations or various regulations. When agreements specifically ban subletting, this scenario might represent the singular reason to block your tenant from subleasing your 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. In cases of illegal subletting, it is vital not to receive any rent from the subtenant. 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
Various landlords approve of subletting to ensure their units stay occupied. This applies mainly if a tenant anticipates being away for a lengthy period. Preserving a positive tenant relationship is important, and facilitating them in tailoring arrangements to their requirements is a significant means to that end. By permitting your tenant to sublet, you also minimize the risk of vacancies and the associated turnover expenses, provided that the rent is consistently paid on time.
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. With open and clear communication, misunderstandings can be bypassed, ensuring a harmonious and tension-free rental experience for both landlord and tenant.
When thinking about authorizing subletting, it’s critical to implement protective measures for both your interests and your property. Screening the subletting tenant thoroughly, as you would do for any prospective tenant, should be among the initial steps taken. After locating a compatible tenant, establishing unequivocal expectations and guidelines for the subletting agreement is imperative. By formulating and ratifying a sublease agreement, you can enumerate all the stipulations and provisions of the subletting arrangement. Implementing a sublease agreement can forestall any forthcoming dilemmas or disputes.
Seeking clarity on enabling your tenant to sublease your rental space? No worries, Real Property Management Solutions has got you covered! Contact us online or call 503-224-3002 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 Hillsboro or nearby.
Originally Published on April 1, 2022
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