Being a rental property owner in Fishers, Indiana often involves carefully selecting reliable tenants. However, some tenants may attempt to sublet their unit—either a room or the entire property—whether or not you’ve approved it. This often occurs when long-term tenants leave town temporarily but don’t want to break their lease.
While subletting can seem like a good solution for tenants, it raises important questions and potential risks for landlords. This article will help you understand how to approach subletting in Fishers rental properties and protect your investment.
What is Subletting?
Subletting occurs when a tenant rents out a portion or the entirety of their rental property to another person (a “subtenant”) while still holding the lease themselves.
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In Fishers, subletting is legal only if permitted by the landlord.
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A legal sublet involves the landlord’s written consent.
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An illegal sublet happens when a tenant brings in a subtenant without permission, creating potential legal complications.
Even when subletting is authorized, the original tenant remains legally responsible for paying rent and ensuring the subtenant follows all lease terms.
Who is Responsible in a Subletting Arrangement?
Even if you approve the sublease:
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The primary tenant remains responsible for:
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Full rent payments
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Property maintenance
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Lease compliance
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As a landlord, you are not legally bound to the subtenant unless a separate lease agreement is signed.
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In illegal sublet situations, do not accept rent directly from the subtenant. Doing so could establish tenant rights under Indiana law.
Reasons to Avoid Subletting in Fishers
There are several valid reasons Fishers property owners might choose to prohibit subletting:
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Legal restrictions: Homeowners’ associations (HOAs) or local ordinances in Fishers may limit or ban subletting.
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Payment risks: If the subtenant fails to pay rent, collecting from the absent primary tenant can become a legal headache.
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Complications with eviction: Accepting rent from an unauthorized subtenant may require formal eviction proceedings to remove them.
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Lack of control: Without your approval, you have no guarantee the subtenant meets your standards.
Reasons to Allow Subletting in Fishers
In some cases, allowing subletting can be a strategic move for landlords in Fishers:
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Avoid vacancies: Subletting keeps the unit occupied while the original tenant is away.
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Reduce turnover costs: Limits marketing and maintenance between tenants.
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Build goodwill: Granting flexibility can improve tenant satisfaction and long-term retention.
If you choose to allow subletting, take precautions to protect your property and maintain control.
Best Practices for Subletting Agreements in Fishers
If you decide to allow subletting in your Fishers rental property, follow these steps:
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Include subletting terms in the lease: Clearly state whether subletting is permitted, under what conditions, and how the approval process works.
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Screen subtenants: Require the same background checks and screening as you would for any new tenant.
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Draft a sublease agreement: Ensure it outlines:
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Start and end dates
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Rent amount and due date
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Maintenance responsibilities
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Behavior expectations
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Communicate openly: Require the original tenant to notify you of all subletting activity in writing.
A well-written sublease agreement protects both you and your original tenant from misunderstandings.
Protecting Your Fishers Rental Property
Whether you’re managing a single-family home in Fishers or multiple rental units across Hamilton County, subletting policies must be clear, enforceable, and legally sound.
Still unsure about whether to allow your tenant to sublet?
Real Property Management Faith is here to help you navigate tenant policies, lease agreements, and property protection strategies in Fishers, Noblesville, and surrounding areas.
Contact Real Property Management Faith today at 317-219-4363 or contact us online to speak with a local rental property expert.
Have any doubts about authorizing your tenant to sublease your rental premises? No worries, Real Property Management Faith has got you covered! Contact us online or call 317-219-4363 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 Noblesville or nearby.
Originally Published on April 1, 2022
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