As a landlord, it’s important to consider all possible scenarios when drafting your leases. If your tenant is going on a three-month trip or needs to go take care of a sick family member, they may come to you asking to sublet. Whatever the situation, it’s almost guaranteed that at some point a tenant will come to you wanting to sublet their unit. It’s best to anticipate this and account for subletting in your rental agreements. Keep reading to find out everything you need to know about subletting.
What is a Sublease?
A sublease is a common agreement that transfers a tenant’s interest in a unit to a subtenant for a period of time. In a legal sense, your tenant then becomes the “landlord” to the subtenant, and you remain in contract with the original tenant. Typically, if any rents go unpaid you will still be able to recover from your original tenant. Sublets can be entered into unless they are expressly forbidden in the original lease. Sublets are a way to offer flexibility to a tenant while they remain liable under their original lease.
What are the Risks of Subletting?
Subletting can be risky for landlords for a variety of reasons. These agreements can sometimes leave landlords in the dark with respect to what’s going on at their property. If you don’t have the proper protections in place you may have little or no control over the subtenant and their ability to pay the rent and or maintain the property. Another aspect to keep in mind is that in the event any legal issues arise it becomes even more complicated trying to recover from a subtenant.
As a landlord it’s important to become informed so that you can weigh the risks and benefits to allowing your tenants to sublet their units, but whatever you decide, the best practice is to establish a sublease policy up front.
Disclaimer: The material and information contained in this article are for informational purposes only. You should not rely on the material or information for making business, legal, tax, or any other decisions.Follow Us