You may have heard the term subletting flown around pretty often and while it is a familiar word the subletting definition is often not known or misunderstood by people. So in this article we want to make it clear on exactly what subletting is and some of the pros and cons of subletting a rental property. Chances are if you are reading this article, you are interested in subletting your property so we want to give you the best information on this topic so you can make the best and informed decisions when it comes to subletting.
Let’s start off with a subletting definition because a lot of people get this wrong. Subletting by definition is to allow someone to rent all or part of a house or other building that you are renting from someone else. Subletting or sometimes referred to as a sublease is a legal contract and the sub lease will state that another individual will be staying in the rental property and that the original tenants name will still be on this sublease. That is the best way to describe subletting in our opinion and now that you have a clear understanding on what exactly it is, we can now dive into some of the pros and cons of subletting to see if it is actually something that can benefit you or not.
Some of the Subletting Pros
Helps Avoid Breaking Your Lease Early
This is probably one of the best pro of subletting, because as you know terminating your lease early is not the most ideal situation to be in and doing so can severely damage your renting history and can even in some situations result in a fine if you terminate/break your lease before it’s actual due date.
You may be going on a long vacation and having the option of subletting can help you out greatly in this situation as you will not have to break your lease/rental agreement and will be freely able to come back to your rental home/apartment at the end of your extended vacation.
Subletting Saves You Money
It’s common knowledge that if you are not actively staying in your home and you are still paying rent then you are wasting a tremendous amount of money in this situation. Subletting will allow you to move away from that specific home or travel for an extended period of time without having to pay the monthly rent for your home yourself. This in itself is a massive pro and one of the reasons we think that you should take subletting into consideration if you are the type of person who likes to go on vacation or somebody that doesn’t like to be tied down to one specific home for an extended period of time.
Some of the Subletting Cons
Can Be Difficult To Find The Most Ideal Tenant
It’s no secret that finding a good tenant to rent out your home/apartment or to sublet it can be a time consuming and stressful process. That is why it is worth mentioning this as a con of subletting a home. In the process of trying to find the most ideal tenant you may run into many obstacles like people not showing up for the meetings and then if they do show up you find out through the interview process that they are not a good fit for the rental unit.
This can be a very time consuming process and you may want to consider hiring someone to do this screening process for you. With that being said hiring someone to do this work will add to your costs which you may or may not be able to afford. So that is why in our opinion this is a con of subletting.
Your Subtenant Could Break The Lease Agreement
You may have been able to secure a subtenant in the situation that you need to move away from your current rental unit or go on a vacation. But that doesn’t 100% safely guarantee that the tenant that you got to rent out the rental unit as a subtenant will stick around until you are able to move back in.
The subtenant may have some life situation come up that will force them to move away from the rental unit and in that situation the lease agreement between you and the landlord would have been broken. The responsibility of this doesn’t necessarily fall into the hands of the subtenant but rather into your hands, because after all it is your name on the lease/rental agreement.
Now that you have a clear understanding on the definition of subletting as well as some of the pros and cons we can dig deeper into subletting and uncover some of the key aspects of this form of renting so that you have the best knowledge available on this subject.
The Tenants Right To Sublet Their Home
A tenant has every legal right to sublet their home, provided that they have written permission from the landlord. We must emphasize that without the proper written permission form the landlord you will be in breach of your lease agreement and if the landlord comes to find out then you can be evicted for breaching the lease and you may be subjected to a fine and any other legal action on top of that. So always get permission before you decide to sublet your home.
Take note that when it comes to getting permission from the landlord, they cannot withhold their permission without a clear and valid reason as to why they do not want you to sublet your rental home. If for any reason a landlord does refuse to give your written permission to sublet then they have to give you clear written reasons why.
When it comes to subletting letting, know that legally you are not allowed to sublet your entire home. Doing so will breach your status as a secure and reliable tenant and you may face an eviction notice.
How Does Subletting Work?
Make Sure That Subletting Is Allowed
As a tenant you may or may not know about all the different things that go into subletting and all the laws revolving if subletting your current home is allowed. We are referring to state as well as municipal laws that go into effect regarding subletting so you will want to make sure that you are well educated on these laws before you make the decision to sublet and take on a subtenant in your rental home.
There are a number of ways you can determine if you are actually allowed to sublet or not and the first answer to your question will be written in your lease/rental agreement. You will want to read through your lease agreement thoroughly and you may even decide to take your lease agreement to a legal professional to understand everything that is allowed and not allowed in your lease agreement.
We always advise that if you are unsure of anything that is of legal nature to seek the help of a legal professional to assist you. This article does not fall under legal advice and is for educational purposes only even though the information contained in this article is accurate and practical. Always seek legal advice from a professional before you make any legal decisions when it comes to your rental property.
Advertise Your Sublet And Do Some Marketing
So you have made sure that you are in fact allowed to sublet your home and have made all the necessary preparations in order to do so. Now comes the time to put your sublet on the real estate market to try and get some sub tenants so that you can have the freedom to move away from your rental home or go on that much needed vacation for a few weeks.
There are many ways that you can go about listing your sublet and then marketing it. You can do it 100% on your own or seek the help of a team of professionals that do it for a living. The choice is entirely up to you and what steps you decide to take will all depend on your available marketing budget.
If you do not get the help of a marketing team then what you can do is list your sublet on various websites that will allow you to do so for free. And you can also head on over to your social media accounts and start posting about it there. It just takes one qualified tenant to successfully sublet your home so it’s worth it to get as much exposure for your home as possible. The important thing to remember when marketing your sublet on social media is to never come across as spammy. If you constantly spam your sublet without giving any real value to the people that are following you then you will never land a subtenant and your efforts will be going to waste. Always provide value. Let them know everything there is to know about the home and make it attractive so that people will actually want to become your subtenant
Interview and Screen Some Potential Subtenants
Once you have put your sublet on the market and advertised it on the various social media platforms then you will start to get some responses trickling in. Now depending on how well you marketed will determine how many responses that you actually get. But if you put in a few hours per day in marketing then you will have potential subtenants coming to you on a daily basis through text and phone calls.
Once you have determined a couple of highly qualified potential subtenants, you will now need to begin the process of interviewing each individual and performing a screening process to make sure that they are a good fit for your sublet and don’t have a bad renting history. The last thing you will want to happen is to take on a sublet tenant only for them to breach your lease agreement with your landlord and then you will find yourself in a sticky situation.
If you do not have any experience with interviewing or screening tenants then you can seek the help of trained professionals who do interviewing and screening of potential tenants for a living. This does come at a cost, but if you ask us it is well worth it to put in the money upfront to pretty much secure the best possible tenant who will give you the least amount of headaches and frustration in the long term.
We have covered the A-Z and everything that you need to know with regards to subletting a home or apartment. We tried to be as thorough and detailed as possible so that you leave reading this article having got all the information you set out to get.
If for any reason you still have further questions or are a little bit unsure about anything that we spoke about in this article then feel free to get in touch with us here and we would be more than happy to assist. With many years of experience in the rental property industry, we are more than qualified to assist you with any questions or concerns that you may have. Feel free to also browse the rest of our website, we cover a wide variety of topics in the rental space so be sure to check those out, I’m sure you will get great value out of this information.
We pride ourselves on helping people get the most out of their real estate experience and we have tons of happy clients and we would be more than happy to help you too. If you would like a free rental analysis then feel free to head over to visit us here, scroll to about the middle of the page and you will be able to request your free rental analysis.