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

Noblesville Tenant Handing Keys to a SubletterIf you are like most rental property owners, you screen and choose your tenants wisely. But some tenants may try to offset their rent payments by subletting to someone else – with or without your permission. Subletting frequently happens when a tenant has a long-term lease but will be away from home for a lengthy period. Rather than break the lease, they may consider subletting a safer alternative.

Subletting can likewise happen when a tenant decides to rent out a bedroom or other part of the home while you are still living there. Your tenant may not see any possible problems with this composition, but as a property owner, is it a good idea to allow your tenant to sublet? Let’s focus on some of the pros and cons of tenant sublets.

Who is Responsible?

Subletting often occurs in two key ways: a legal sublet, in which the landlord has permitted the tenant to rent all or part of the property to another tenant, and an illegal sublet, in which the tenant does not have permission. In any subletting situation, the original tenant remains responsible for upholding the lease terms they signed and for paying the entire rent. This is true even in legal subletting cases. Even in idyllic situations, subletting demands putting a great deal of trust in your original tenant to keep their subletting tenant in compliance.

Reasons to Say No

Allowing subletting or not is totally up to the Noblesville property manager or landlord. There are a few exceptions where homeowners’ associations or other regulations restrict subletting a property. If subletting would violate such agreements, that may be the only explanation you need to forbid your tenant from subletting your rental property.

One more potential reason not to allow subletting is if your original tenant is away and the subletting tenant stops paying rent, you cannot collect from them. Instead, you’d need to track down and request payment from your original tenant, which could be a time-consuming and challenging process. If the sublet is illegal, it’s important not to accept any payment from a subletting tenant. Accepting money from a tenant, even an illegal one, may give that tenant rights to the property that you can only terminate through an eviction.

Reasons to Say Yes

On the other hand, some property owners may allow subletting to keep the property occupied, especially if a tenant is gone for several months or more. There is value in maintaining a good relationship with your tenant, and allowing them to make arrangements that will meet their needs is another good reason to say yes. Allowing your tenant to sublet may also help you avoid vacancies and turnover costs, as long as the rent continues to be paid each month.

Subletting Agreements

In any subletting situation, it’s important to have a clearly-worded subletting agreement that includes your expectations and your tenant’s responsibilities. In fact, whether you allow subletting or not, you should have a clause in your lease that explains what is allowed and under what circumstances.

If you decide to allow subletting, make sure to screen the subletting tenant the same way you would any other tenant before giving your consent. Then, create and have all parties sign a sublease agreement that outlines the terms and conditions of the subletting arrangement. This may help provide additional protection for you and your property should any problems arise.

Do you still have questions about whether you should allow your tenant to sublet your rental property? Contact Real Property Management Faith to speak to a rental property expert today!

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