If you are a real estate buyer in 2022, how do you discover that your principal tenant would like to sublet the property without your consent. Landlords permit subleases to their rental properties for a variety of reasons.
Many landlords are confused about what to do next after they realize that tenants are subletting rooms without their consent. In this article, we'll discuss options when you discover that your tenant is planning to sublet the room you have not approved.
As always, let's begin with the fundamentals:
What Is Subletting?
Subleasing, also known as subletting, is where the tenant leases their current property to a different tenant. The subletter will also pay a part of the rent or the entire amount and could be liable for the entire amount by the lease agreement.
Suppose the tenant who was originally responsible remains with the responsibility. In that case, they are liable if the subtenant fails to pay rent on time, causes damages to the property, or violates the terms of the sublease agreement.
In terms of laws and rules for subletting, some states do not mention subleases and leave the entire terms to the lease contract. Certain states have rules for subletting rental properties.
Types of Sublets
There are two kinds of sublets:
A short-term sublet happens when a tenant sublets the property during times when they are going to go away for a brief time. The subtenant leases the rental property as long as the tenant who is the primary tenant is away.
In a few situations, the primary tenant is evicted permanently and the subtenant will live in the property during the remaining lease term. If the new subtenant is the principal tenant, we identify them by "assignment" or "assigned lease."
Why Your Tenant Wants to Sublet
We've briefly examined the reasons for subletting an apartment as described above. If you do not intend to sublease, you could assign the lease to a different tenant and later transfer it to the tenants who originally signed it once they return.
This leasing transfer can be much easier to manage because the primary tenant won't have much loss to make when they leave within a few months. In other words, it's not necessary to charge a break lease charge.
How to Handle Subletting
Do you want to do an offer to sublet your property to the tenant who is looking to relocate?
In a perfect world, the primary tenant will move out when their lease ends, and a new tenant is brought in, and you are getting your rental income without any major problems. Here's how to deal with the tenant who would like to sublet their room with other tenants:
Screen Your Subtenants
If you have a contract to let your property sublet, the principal tenant is responsible for screening the subletter. But, like any other tenant living on your property, you are entitled to verify that they're accountable and trustworthy.
Each tenant has to undergo the same screening process as all tenants. Your tenants must understand that you are the sole authority regarding subtenants who wish to sublet.
Tenants Must Seek Your Approval
A tenant looking to sublet your property has to get your approval. The more formal the process is, the more likely your tenants will appreciate the importance of the subletting procedure.
Be Clear on the Payment Process
One of the main elements of subletting is the payment of rent. After we've gone over the basics and discussed scenarios that might lead tenants to sublease their apartments to rent, what should you do if you find that your tenant is planning to sublet the apartment for a year without your approval?
First, if you do not permit subletting of your property in any way, you must prevent this situation by stating it in the lease agreement. In that regard, here are some alternatives for you if you encounter the same situation:
Confirm With the Subtenant
In the first place, please verify that the subtenant isn't providing housekeeping services for the tenant during their absence. If the tenant is subletting, determine when the lease was signed and what terms are included in the contract.
In certain cases, there are instances where the subtenant isn't aware that the principal tenant isn't the landlord. Try as hard as possible to establish an agreement for everyone in the.
Illinois: Sending your primary tenant an official notice that they must comply with the lease contract is a good start. If you discover that your tenant is subletting their spare room for, let's say, three months without any issues, you can permit them to continue the arrangement.
Florida: If you allow this to continue, we advise you to be cautious. In contrast to Illinois laws that allow tenants to sublet Chicago or any other city, they can sublet Chicago regardless of what the lease stipulates. This means that the ability to sublease is contingent on the lease.
Massachusetts: Who are tenants' rights that are interested in subletting in Massachusetts? Tenants are entitled to sublet based on the lease agreement.
New York: Most tenants in New York are allowed to sublet their rental homes. New York also regulates subleasing as you cannot rent out an apartment, a single-family home or space for less than 30 days when the tenant doesn't live on the property.
Texas: Tenants in Texas can sublet their homes only if their lease agreement permits them to do so. If the lease agreement does not contain a clause for subletting, the tenants are not permitted to sublet their properties until they have permission from their landlords.
Damage to Property
Subleasing is permitted in some states and cities. However, the tenant, the primary one, is accountable for rent payments and any damages unless the sublease agreement stipulates the opposite. Suppose the subtenant cannot pay rent on time or causes significant damages to the property. In that case, the landlord can initiate legal action against the tenant, who is the primary.
To avoid this kind of situation, you can request a Security payment from your subtenant.
Final Thoughts
Subletting has both advantages as well as drawbacks for the landlord and tenant. Make sure you include a clause that addresses subleasing in the lease agreement so that it informs you in the event of tenants who want to sublet the rental property.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
