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what landlords need to know about subletting

What landlords need to know about subletting

Navigating how to draft and sign a lease with a new tenant can be confusing enough, but what if your tenant wants to sublet? Do you have to allow your tenant to sublet? How should you handle the situation? This article will answer all of your questions and more. Here’s everything you need to know:

What is Subletting?

Subletting is when your tenant finds another person to cover the responsibilities of the rental lease. The person who takes over the lease, also known as the subletter, will move into the property and pay you rent. Setting up this transfer is especially easy if you’re allowing tenants to pay rent online.

Tenants often need to sublease if they’re leaving the area due to a job change or relocation.

Subletting is a great way to offer your tenants flexibility if they need to move out, without breaking their obligation to you. That way, you’re offering your tenants flexibility without losing money.

How Should You Address Subletting in Your Rental Lease?

We recommend having a sublet clause that states the tenant is not allowed to sublet without your written permission.

The clause should also state you will not unreasonably deny permission to sublet. This means that you will allow your tenant to sublease if the terms are reasonable.

Are You Legally Required to Allow Your Tenant to Sublet?

This depends on the verbiage in your rental lease. If you have a sublet clause in your lease, then you are obligated to allow your tenant to sublet as long as the terms are reasonable.

If you don’t have a rental lease with your tenant, then you technically do not have to allow sublets. However, it’s good to be accommodating for your tenant, as long as you trust the subletter will pay rent on time and take care of the property.

Does Your Tenant Need Your Permission to Sublet?

If your rental lease has a sublet clause, then the tenant will need your written permission. In general, it’s standard for tenants to be required to ask for permission, since someone new will be living in your property.

Who is Responsible For Finding the Subletter?

It’s the tenant’s responsibility to find a subletter. The tenant should find someone responsible who will pay rent on time, because if the subletter does not pay, then the tenant is still on the hook to pay rent.

How Do You Find a Sublease Agreement?

Rocket Lawyer provides subleases. Click here for a free sublease agreement.

Who Needs to Sign the Sublease?

Every party needs to sign. This includes you (the landlord), the tenant, and the subletter.

What Happens if the Subletter Doesn’t Pay Rent?

Once the sublease begins, the subletter is responsible for upholding every aspect of the lease, including rent payments.

If the subletter doesn’t pay rent, then the tenant is responsible to pay. It’s a good idea to remind your tenant about this responsibility so he or she finds a responsible subletter. You can even educate your tenant on tenant screening.

What If Your Tenant Wants to AirBnB the Property?

AirBnB rentals are similar to sublets because they’re both short-term rentals. This means your tenant needs to ask for your permission before renting the property on AirBnB. You should also sign any agreement that a tenant enters via AirBnB.

Next Steps

Subletting provides your tenants flexibility while ensuring you’ll receive rent for the duration of the lease. Subleases are easy to create and sign. Download Rocket Lawyer’s free sublease here.

About Rentalutions

Rentalutions is the only end-to-end landlord software that helps DIY landlords find tenants, screen tenants, sign leases, collect rent online, and manage maintenance. Thousands of landlords like you use Rentalutions all across the U.S. Access our free landlord guides here.

 

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Avail

Until now, landlords with less than 10 units haven’t had access to online tools designed specifically for them. Avail is an intuitive app that helps you advertise vacant units, request rental applications and credit reports, sign leases, and collect rent — all online. Today, 75,000 landlords use Avail because it’s the only end-to-end platform that helps you scale from beginner to professional with tools, support, and education.
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