Hiring your property out can be tasking, as you would have to go through several procedures such as doing a background check, credit check and other necessities on your intending tenants. After all these checks, you finally agree to lease them your property for an agreed time frame only for you to receive a shocking news that your tenant wants to sublet your property to a third party. This would come as a surprise because you never expected it, but it is all up to you to agree with the new development or not. You shouldn’t be shocked because this could be to your favor, as you never can tell.
Subleasing comes with merits and demerits, therefore it is up to you to find out if it would benefit you. The law binding landlords and tenant’s addresses subleasing, so let’s see how it would benefit you and how it wouldn’t.
- You continue to receive income
One obvious advantage of subletting is that your property will keep generating income for you. Whether it is a temporary subleasing where the tenant vacates and then returns after a period or a permanent lease where the tenant wants to leave there completely and gets someone to take over, you will still be getting revenue as your property won’t just stay vacant.
However, since you may not have time to determine who the new guys are in a temporary subleasing arrangement, you might run into unplanned expenses since you don’t know what kind of damage they can do or their criminal records.
- No need going through the hurdles of searching for a new tenant
Since your tenant must have gotten someone to take over, you won’t have to go through the stress of searching for someone to take over and fill the vacant space once they leave. Nevertheless, you should be cautious because the sub letter might not be as nice as your tenant and this might be more harm than good to you.
- You may be shielded against certain problems with subletting.
Your tenant should document an agreement with the subtenant, and you can always use this to your advantage, especially if things go south. Everything should be spelt out clearly, with both the tenant and subtenant knowing clearly what their responsibilities are. For example, if the subtenant refuses to pay up for damages or rent, you as a landlord can always hold the tenant responsible.
But you should be alert because some tenants might use this as an opportunity to make profit, increasing the subtenants rent without your consent.
So, what to do?
From what has been discussed, you will agree with me that subleasing is a nice idea, especially when the tenant has a genuine reason for vacating the property whether temporarily or permanently. It will also benefit you if the subtenant is nice and has no bad records. That being said, always know that as the landlord you have the final say on subleasing your property, and you can kick against it if it doesn’t favor you.