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

A female subletting tenant carrying boxes with personal belongings.For rental property owners, finding the right tenants typically involves a lot of work. Nonetheless, occasionally tenants opt to sublease their unit to others, regardless of your consent. Usually, this is the case when a tenant, under a long-term agreement, expects to leave their home for an extended duration. Rather than terminating the lease, they often view subleasing as a preferable alternative. Through this article, we will explore ways to address this challenge and achieve a resolution agreeable to all involved.

The term subletting denotes when a tenant leases out a section of their dwelling, such as a bedroom, and remains living there. Although this arrangement might appear beneficial for tenants seeking additional income, it can provoke worries among landlords. For landlords, it’s critical to consider the advantages and disadvantages of permitting tenants to sublet. It’s time to explore these factors more thoroughly.

Who is Responsible?

Subletting, a frequent occurrence, manifests in two distinct forms. In the first scenario, a legal sublet, the landlord authorizes the tenant to lease out either the entire property or a portion of it to another tenant. Conversely, an illegal sublet occurs when the tenant leases the property to someone else without gaining the landlord’s consent.

It’s crucial to note that in subletting, the original tenant remains legally obliged to adhere to their lease agreement and ensure payment of the total rent. Thus, regardless of whether subletting is authorized, the original tenant continues to hold final accountability. Despite a trouble-free process, subletting necessitates entrusting the original tenant with the responsibility to ensure the subtenant abides by the lease terms.

Reasons Not to Allow Subletting

You hold the complete authority to decide on allowing subletting as the property manager or landlord. However, it’s significant to acknowledge that sometimes, due to homeowners’ associations or certain rules, subletting can be restricted. Should such agreements forbid subletting, this might constitute the sole basis for you to deny your tenant the option to sublet your rental unit.

Additionally, the risk of not being able to collect rent from a subtenant—who stops making payments while the original tenant is away—might dissuade you from allowing subletting. Consequently, you would have to seek out your original tenant to request rent, a process that can prove both time-intensive and difficult. Should the sublet prove to be illegal, accepting rent from a subtenant is crucially something to avoid. Receiving payments from a subtenant, even one subletting illegally, may unintentionally grant them rights to your property, with eviction being the only recourse to revoke these rights.

Reasons to Allow Subletting

A number of property owners authorize subletting as a strategy to maintain occupancy. This is particularly the case when a tenant plans to be absent for an extended period. Keeping a healthy relationship with your tenant is vital, and enabling them to arrange what best fits their needs is an effective approach. Authorizing your tenant to sublet is beneficial in dodging vacancies and the costs of tenant turnover, as long as rent payment is punctual monthly.

Subletting Agreements

A specific subletting agreement detailing your expectations and the responsibilities of your tenant is invariably beneficial. Regardless of your stance on subletting, including a clause in your lease that clearly defines the allowances and conditions is crucial. Engaging in straightforward communication can help avert confusion and foster a joyful and smooth rental journey for all parties.

Contemplating permitting subletting necessitates taking essential steps to safeguard both yourself and your property. The first measure to undertake is the meticulous screening of the subletting tenant, just as one would with any potential tenant. Having selected a fitting tenant, it becomes crucial to define explicit expectations and regulations for the subletting deal. This involves drafting and executing a sublease contract that comprehensively details the terms and conditions of the subletting deal. A sublease agreement can serve as a preventative measure against possible future conflicts or problems.

Wondering about the implications of letting your tenant sublet your property? No worries, Real Property Management Piedmont has got you covered! Contact us online or call 404-480-4820 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 Atlanta or nearby.

 

Originally Published on April 1, 2022

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