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

A female subletting tenant carrying boxes with personal belongings.As someone who owns rental property, you probably take great care in choosing the right tenants. Nonetheless, occasionally tenants opt to sublease their unit to others, regardless of your consent. This often occurs if a tenant is bound by a lengthy lease yet plans to be absent from their residence for a significant time. 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. While offering tenants a chance to earn more, this practice can instigate concerns for those owning the property. For landlords, it’s critical to consider the advantages and disadvantages of permitting tenants to sublet. We shall now scrutinize some of these elements in detail.

Who is Responsible?

The act of subletting typically takes one of two paths. The first method involves a legal sublet, with the landlord’s approval for the tenant to sublease the property, in part or in full, to another tenant. Another form is the illegal sublet, where the tenant hands over the property to another tenant without securing the landlord’s approval.

When it comes to subletting, bear in mind that the initial tenant holds legal accountability for upholding the lease terms and paying the rent in full. Therefore, the original tenant remains ultimately responsible, even in situations where subletting is approved. 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

As the landlord or property manager, the choice to authorize subletting rests solely with you. Nonetheless, keep in mind that in some instances, subletting could be limited by homeowners’ associations or various regulations. If agreements like these make subletting impermissible, that could be your only reason to forbid subletting to your tenant.

Refusing subletting might also be prudent if, in the event the subtenant halts rent payments and your initial tenant is gone, you cannot pursue them for payment. Consequently, you would have to seek out your original tenant to request rent, a process that can prove both time-intensive and difficult. In cases of illegal subletting, it is vital not to receive any rent from the subtenant. Collecting rent from a subtenant, even in illegal sublets, could endow them with certain property rights, only removable through eviction.

Reasons to Allow Subletting

Certain landlords permit subletting to ensure their property remains tenanted. This is particularly the case when a tenant plans to be absent for an extended period. Building a strong rapport with your tenant is essential, and allowing them the flexibility to accommodate their needs is a key strategy. 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

The optimal approach is to draft a comprehensive subletting agreement that outlines both your expectations and the obligations of your tenant. Regardless of your stance on subletting, including a clause in your lease that clearly defines the allowances and conditions is crucial. Through open dialogue, it’s possible to sidestep misunderstandings and guarantee a satisfying and relaxed renting situation for everyone involved.

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. The creation and signing of a sublease agreement, itemizing every clause and condition of the subletting contract, achieve this. A sublease agreement can serve as a preventative measure against possible future conflicts or problems.

Seeking clarity on enabling your tenant to sublease your rental space? No worries, Real Property Management Performance has got you covered! Contact us online or call 732-289-9337 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 Eatontown or nearby.


Originally Published on April 1, 2022

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