5 Things to Consider Before You Allow Your Lessees to Sublet

1. 5 Things to Consider Before You Allow Your Lessees to Sublet However, when it comes to writing up leases, you’ll need to consider something that many first-time landlords aren’t familiar with – subletting. Below are five things you need to know about subletting before you decide to allow it. #1 –Subletting Isn’t That Common The first thing to remember is that subletting isn’t common in any part of the country. Essentially, when you allow subletting, you give your tenants the ability to rent out all or part of their apartment or home to someone else. There are benefits associated with allowing it, but if you aren’t clear with your terms, it can also turn out to be a disaster. Even though it isn’t common, it’s still worth considering. #2 – Your Tenants Need Your Permission Unless you give explicit permission in a tenant’s lease, every single tenant must come to you and obtain your written permission before he or she can sublet part or all of her rental unit. Though there are a few landlords who draw up the terms associated with a sublet in the original lease, others simply include a clause that says subletting requires a secondary contract to be signed by the lessee. The latter option is typically best as it allows for more in-depth rules for subletting. #3 – You Can Make the Ultimate Decision If you choose to allow a tenant to sublet, it is up to you to ultimately approve or deny the person that the tenant has in mind. For example, if your tenant wants to sublet to a friend, you can ask that the friend undergoes the same series of checks as the original tenant. Things like application fees, background checks, credit checks, and employment or income verification are all within your rights. #4 – It Can Benefit You and Your Tenants Everyone falls on hard times now and then, and it can be difficult for people to pay the rent when it happens. Landlords who strictly forbid subletting often find themselves handing out eviction notices and taking people to court for back rent that they simply cannot pay. Subletting allows tenants to move in a roommate who is just as liable for part or all of the rent as the original tenant (depending on the contract), and this can keep your tenants from being evicted and save you the court fees, too. #5 – There May be Local Laws and Regulations Before you decide to allow or disallow subletting, it’s important to read the laws as they apply to your state and local area. Sometimes there are guidelines in place designed to protect renters or landlords that dictate how a lease for a sublet must be written. Failing to adhere to certain guidelines can lead to fines and headaches, so be sure to carefully review the information for your local area. Whether you own one or many multifamily complexes or you simply rent out single-family homes, understanding the nuances, benefits, and potential side effects of allowing subletting can save you time, money, and headaches. Be sure to always check local and state guidelines before making any decisions, as well.