Subletting: What to be aware of and how to stop it as a Landlord

Landlords have many responsibilities, one of which is to prevent subletting. Subletting occurs when a tenant rents out their rental unit to another person without your permission or knowledge. In this blog, we will explore what subletting is, its risks for landlords, and how to prevent it.

Understanding Subletting

Subletting is legal in most places unless the tenancy agreement explicitly prohibits it. There are different types of subletting, including subleasing, where the tenant rents out the entire unit, and roommate situations, where the tenant shares the rental unit with another person. However, landlords can include clauses in their tenancy agreements that limit or prohibit subletting.

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Risks Associated with Subletting for Landlords

Subletting can pose several risks for landlords. Firstly, it can lead to increased wear and tear on the property, as there are more people using it than intended. Secondly, it may be a breach of tenancy agreements and regulations, which can lead to legal issues. Thirdly, it can pose security risks for the property and neighbourhood, as the landlord may not have screened the subtenant or conducted proper background checks. Finally, there is the risk of financial loss due to subtenant default or non-payment.

Is Subletting Allowed under an Assured Shorthold Tenancy Agreement?

The clauses of an Assured Shorthold Tenancy (AST) agreement that address subletting can vary depending on the specific terms of the agreement. However, there are some common clauses that typically address subletting.

One common clause is a prohibition on subletting, which states that the tenant cannot sublet the rental property without the landlord’s written consent. The clause may also require that the tenant obtains the landlord’s consent before subletting.

Another common clause is a restriction on the number of occupants allowed in the rental property. This clause can help to prevent unauthorised occupants from living in the property, including subtenants.

Finally, the agreement may have a clause that states that any unauthorised subletting is a breach of the agreement and can result in the termination of the tenancy. This clause can give the landlord legal grounds to take action against the tenant if they violate the subletting terms of the agreement.

It’s essential to carefully read and understand the subletting clauses in an AST agreement to ensure that both the landlord and the tenant are aware of their respective rights and obligations.

How to Prevent Subletting as a Landlord

Preventing subletting can be achieved through various measures. Firstly, clear and concise subletting clauses should be included in the tenancy agreement, stating that subletting is not allowed or requires the landlord’s permission. 

Secondly, thorough tenant screening should be conducted to identify potential subletting intentions before entering into a tenancy agreement. Thirdly, regularly inspecting the property can help to check for any unauthorised occupants. Finally, strong communication and relationship-building practices with tenants can help to foster a good relationship and encourage them to come to you if any issues arise.

What to Do if Subletting Occurs

If subletting does occur, it’s essential to gather evidence and document any violations. The next step is to initiate legal action as per the tenancy agreement and local laws. Consider mediation or arbitration to resolve the issue amicably, as this may be a quicker and more cost-effective solution. Finally, review and revise tenancy agreement clauses to prevent subletting in the future.

Conclusion

In conclusion, subletting is a common issue for landlords. It’s important to be aware of subletting and take necessary measures to prevent it, including clear and concise subletting clauses, thorough tenant screening, regular property inspections, and strong communication and relationship-building practices. Remember, prevention is key in avoiding potential risks associated with subletting.

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Compliance checklist

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Compliance Guide

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Meet Sam your local Expert

Sam has a wealth of experience across the private landlord and Build to Rent sectors. He has advised a wide range of clients across the whole of London on how to find great tenants, improve their assets and effectively market their properties for the best returns.

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