Subletting is a great option for everyone who needs a place to live without committing to a long-term rental. It allows tenants to rent only part of someone else’s house or apartment rather than the whole property. Offering flexibility, it can be beneficial for tenants and subtenants who are looking for temporary accommodation. However, subletting involves some complexities, so it is important to process it cautiously.
Before getting started, you should get familiarised with the potential risks and determine any feasible measures to mitigate them. So, with this blog post, we’ll try to help you by discussing legal considerations and sharing some valuable subletting tips so you can have a smooth and successful experience.
Table of Contents
What is subletting?
Subletting is when the tenant signed under the tenancy agreement rents a part of the premises or all of the property to another renter. The subtenant owes rent and has to comply with the original lease terms, but the principal tenant remains ultimately responsible before the tenancy agreement. So, if the sub-renter owes back rent, the landlord could sue the principal tenant.
The sublessor (subtenant’s landlord or the primary tenant) is fully responsible for the full rent and any damage caused by the subtenant. The property landlord cannot impose parts of the tenancy agreement against the subtenant. However, if the subtenant refuses to leave at the end of the tenancy, the property landlord can evict both the principal and subtenant.
The difference between Subletting, Reletting and Assigning:
- Reletting: The property landlord relets the housing with a new renter with an entirely new tenancy contract signed by both parties. This way, the original tenancy agreement with the former tenant is voided.
- Assignment: If you want to leave, but the property landlord will not cancel your lease nor allows a sublease, you can assign your lease. An assignment is when the tenant transfers all remaining interests in the lease agreement to another person, called the “assignee” (you’re the “assignor”).
Is subletting illegal?
Whether subletting is illegal or not depends on the terms and conditions of the tenancy agreement and the specific circumstances. That’s why if you consider subletting your rented property, you should first check your tenancy agreement.
As a tenant, the right to sub-rent the rental property or a part of the housing, including new roommates, is defined by the tenancy agreement. If the housing contract does not mention subletting, it is usually allowed. However, most tenancies require the property landlord’s permission as well as the approval of any new renters. Subletting without permission could be a breach of your tenancy agreement. Therefore, you should contact a legal professional or housing advisor who can give you advice according to your specific situation.
Subletting tips about getting your landlord’s permission
Subletting can be quite tricky. It’s always best to approach your landlord in a modest and polite way because you should have all that settled within the tenancy agreement. However, beware if the new landlord has initiated a subletting scam! Some landlords take advantage of people in need of tenancy against high rent.
In case your landlord is okay with sub-renting but there is no housing agreement about it, he simply may take in the full rent, which surpasses the one in the primary agreement. In this situation, it is the tenant who must face the law, while the housing landlord is free of liability and still takes in all the cash.
When it comes to the most important question of subletting, the landlord has to reply within 14 days. If the tenant does not receive a response from the landlord within two weeks, the law says the renter can assume the landlord consents to the request.
What the sublet contract should include?
In order to protect the rights and responsibilities of all parties involved, the sublet contract should include several essential elements. Although some specific requirements may vary depending on local law and regulation, your subletting agreement needs to include the following details:
- How much rent is due, including any increases (called escalations)?
- How long does the tenancy last (also known as the term of the rent, when it begins, and under what conditions can you renew it?
- What is the size, quantity, and location of all signatures needed?
- Does the tenancy include utilities – phones, electricity, water, or if those are to be paid on a separate occasion?
- Who is responsible for all property maintenance expenses, taxes and insurance costs and how they’ll be calculated?
- The amount of tenancy deposit and if a letter of credit is eligible instead of cash
- A detailed description of the housing: square footage, parking spots, and all other amenities
- List all home improvements the landlord will make (if) before you move in as a tenant
- Ensure you issue an independent inventory report for when the time comes for an end of tenancy cleaning. (more after-tenancy tips for tenants)
- A non-disturbance agreement in case the landlord sells the property or his lender forecloses on him.
- Clarify that the premises can be only used for purposes that comply with the master lease.
- Who is responsible for maintenance and repairs?
- The subtenants, at their own expense, carry insurance similar to that required under the master lease. The sub-renter must include the sublandlord and the property landlord as additional insured parties on all insurance policies.
- What is the extent of alterations and improvements the sub-tenant is eligible to carry?
- What “Events of Default” will cause the subtenant to default under the sublease agreement?
- What “remedies” will apply in case of an “Event of Default?
- How and under what circumstances can you break the lease?
Do’s and Don’ts when subletting your property
To ensure a smooth and legally compliant subletting process, you need to follow a few dos and don’ts.
Do’s:
- Sign and double-check the subtenancy agreement in detail!
- Make sure you fully understand your responsibilities under the sublease!
- Request a security deposit!
- Get a professional inventory report!
- Set a list of rules!
- Beware of scams and shenanigans!
- Maintain a polite and friendly relationship with your landlord!
- Negotiate how and when payments are due!
Don’ts:
- Don’t violate the laws and regulations. If necessary, contact a specialist to get some subletting tips before sub·lease your property.
- Don’t think you can simply sublet to strangers!
- Don’t overcharge your subtenants.
- Don’t sublet anyone before meeting in person!
- Do not think your sub-renter won’t use any of your belongings!
Other advice or caution regarding the subleasing process?
Subletting is a great way to earn some extra income, but it is important to understand the process and potential risks. When you sublet your property, you are essentially taking on the role of a landlord, so you must make sure both you and your subtenant are aware of all the legal obligations. Additionally, you should know what protective measures you should take if something goes wrong.
No matter if you are a landlord or tenant, make sure you always do your homework, such as figuring out how much does end of tenancy cleaning costs. If you lack the skill and effort needed to fully elaborate on your duties and responsibilities, you will most certainly end up in an unpleasant mess.
Professional end of tenancy cleaners are available!
Enter your postcode to view our rates and availability in your area.
For questions about the services we offer visit our main site or you can always call us at 020 3404 0145
Leave a Reply