If you’re not sure about what subletting really means, here’s the risks of the arrangement and how to know if your tenant is consciously subletting your property.<\/p>\n\n\n\n
Lost rental income and disastrous property damage. This subletting nightmare actually happened to one of our landlords. While SPEEDHOME has helped him and other landlords with similar cases to recover their property, you can avoid the problem altogether by learning how to identify if your property is being sublet without your knowledge.
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Subletting is the practice of an existing tenant renting out the entirety or part of a property to someone else. Rather than paying rent to the landlord, the new subtenant or subletter, pays the tenant.<\/p>\n\n\n\n
This is different from roommates, where every tenant is named in the lease and is jointly responsible. Only the original tenant\u2019s name is registered under the lease agreement when subletting. This can come into play when a termination in the subletter\u2019s lease is separate to the tenant\u2019s, for example. <\/p>\n\n\n\n
Is subletting illegal?<\/p>\n\n\n\n
If your tenant sublets without your permission, they are in breach of their tenancy agreement. Depending on the nature of the sublease, you are entitled to take legal action, but non-escalating solutions should be considered first.<\/p>\n\n\n\n
Related read: What do I do if my tenant sublets the property without telling me?<\/p>\n\n\n\n
It isn\u2019t uncommon for tenants to sublet their rental property: either a bedroom to make extra money; or the whole property for more rent than they are paying. Organised schemes to increase scarcity and pocket the difference also exists, but these are less common.<\/p>\n\n\n\n
Problem is\u2014 subletting leaves you, the landlord, with concerns about your asset. You won\u2019t know who\u2019s staying in the property and it could suffer a lot of wear and tear since the tenants aren\u2019t vetted beforehand. They may as well be squatters if you don\u2019t trust them.<\/p>\n\n\n\n
Some landlords aren\u2019t bothered about who is living in the property as long as the rent is being paid. Since your lease is your first line of defence, the tenant who signed the agreement will be held responsible for any damage caused. But things can happen outside of your control and when they do, it becomes a whole other can of worms for you to deal with.<\/p>\n\n\n\n
A tenant who didn\u2019t just ghost his landlord\u2014 he replaced himself with a destructive mess and pockets the entire rent money. Our runners are ready to knock on some doors to straighten this out.
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It starts with a bad sign\u2013 6 months of missed rental payments and an uncooperative tenant. Our landlord didn\u2019t want to take any action because the tenant was his friend, who promised to pay his dues. That stopped the landlord from sending Letters of Demand as the losses piled up.<\/p>\n\n\n\n
Panic sets in when the tenant completely disappears and becomes uncontactable. SPEEDHOME was sent to investigate the property. What should\u2019ve been a straightforward case of tenant abandonment is complicated when they find someone else living there. Instead of the man listed in the tenancy agreement, they find a woman.<\/p>\n\n\n\n
Who is this woman and where is the original tenant?<\/p>\n\n\n\n
Read also: What do I do if a tenant abandons the property?<\/p>\n\n\n\n
The woman, who we now know is a subtenant, claims that the original tenant had rented the property to her with a legitimate tenancy agreement, which she had been paying. This is an illegal subletting arrangement, with none of the money going to the landlord and an untrustworthy person taking the original tenant\u2019s place. Because the original tenant made this agreement without the landlord\u2019s permission, it breaks the terms of the lease and the sublet is invalid. This is grounds for eviction of both the tenant and subtenant.<\/p>\n\n\n\n
But we have some bigger problems to deal with.
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The subtenant caused disastrous, intentional damage to the property. Not only were the walls painted a hideous colour, the furniture was vandalised, the place was trashed and dirty. This inconvenience would have cost the landlord so much money if it weren\u2019t for the insurance in place.<\/p>\n\n\n\n
SPEEDHOME needed to recover the property, restore it and find a new tenant ASAP to recoup the losses from the sublet. Legal action may be an obvious answer but it would take up time and money.<\/p>\n\n\n\n
Everything was questioned, from the background of the subtenant to her relationship with the original tenant. Furthermore, Police had deemed the sublet as a domestic case and had no jurisdiction to evict the subtenant from the premises. The tenant continues to be uncontactable and the subtenant stubbornly refuses to acknowledge the real landlord. So what now?
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Our Homerunners went to great lengths to resolve the issue.<\/p>\n\n\n\n
To establish contact with the subtenant, they went to the unit pretending to be new tenants viewing the unit to legitimise the landlord\u2019s ownership in the subtenant\u2019s eyes. They took a closer look at the unit and tried to convince the subtenant to leave since her agreement was illegal.<\/p>\n\n\n\n
When that didn\u2019t work, SPEEDHOME gave the subtenant an incentive by offering to help her move out with funds and assistance in the eviction process. It worked, the subtenant was gone and the property was successfully recovered.<\/p>\n\n\n\n
Our robust, SOP-driven eviction process has worked with many similar cases and protects the 6000 properties and landlords under our care. You can stay home with no headaches while the team sorts through the issue, knowing your unit is handled effectively.
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The best way to gather evidence is by conducting regular property inspections<\/strong>. Notify your tenants in writing with a 72-hour notice for inspection. If they refuse access or try to delay, this should raise some suspicions.<\/p>\n\n\n\n Schedule the inspections early in the morning, around 9:00 am, and arrive early to observe any unusual activity. You might even witness multiple people leaving who aren\u2019t included in the number of tenants on the agreement. While you\u2019re there, keep your eyes open for obvious clues:<\/p>\n\n\n\n Property inspections might be hard for landlords who don\u2019t live nearby their property. Alternatively, you can send someone you trust to check the property for you. SPEEDHOME\u2019s homerunners service can offer you the same convenience and follow up if they find any trouble.<\/p>\n\n\n\n Being proactive will benefit you in the long run. In cases where the original tenant is not present at all and whoever lives on the property doesn\u2019t know who their landlord is, it\u2019s good practice to keep in contact. Often subletters who have been deceived by the primary tenant would provide more information when they learn that you are the real landlord. After all, they\u2019re also victims who are tricked into this illegal arrangement. Should your tenants express interest in subletting, they should submit a written request explaining their reasons and give you a reasonable amount of time to consider and respond. If you agree to subletting, a new tenancy agreement should include specific terms. If you decline, respond in writing and inform your managing agent accordingly.<\/p>\n\n\n\n Under any suspicions of subletting, reach out to our operations team for further assistance.<\/p>\n\n\n
<\/p>\n\n\n\nWhat other signs can you spot without visiting the unit?<\/h2>\n\n\n\n