Subletting can be a convenient way for tenants to save some money when going on holiday. This financially viable option ensures you can move out temporarily and still return to the property after the sublease has ended. When subletting, tenants remain on the tenancy agreement as the original tenant. However, they also simultaneously become the ‘landlord’ to the subtenant.
Before subletting, there are some key factors to consider first:
If you’re looking to sublet, the first thing you should do is review your tenancy agreement. If subletting is prohibited, it will be clearly stated in your contract. If nothing is noted, reach out to the landlord to discuss your situation.
Pro tip: We recommend submitting sublet requests in writing with some information around your plans for filling the vacancy.
Subletting doesn’t come without risks. There is a loss of control when letting out a property to a third party. This means there is a chance of missed rent payments and property damage. Although this is not common, it’s still important to select a trustworthy person.
The most significant risk is for those who go ahead with a sublet without their landlord’s permission. With potential fines up to $1500, this is something that should be avoided at all costs.
When subletting, you will remain on the tenancy agreement as the original tenant. However, you will also simultaneously become the ‘landlord’ to the subtenant. This means that it is your responsibility to ensure that rent payments are made on time and that the property is kept to a reasonable standard of cleanliness. Therefore, finding the right candidate is essential. Finding a responsible and reliable person to take over the lease will give both you and your landlord peace of mind.
When subletting a property, it would be ideal to select someone you know personally and trust. We always recommend that tenants reach out to their personal networks when looking to sublet.
Once the proposed candidate has been selected, a good property manager should complete the necessary tenant checks to ensure the property is in safe hands. These include:
If a landlord has not explicitly stipulated otherwise, they cannot decline a request to sublet. However, they can put forward conditions if they are reasonable. Landlords can face insurance penalties if their property is sublet, which is due to the additional risks associated with subletting. The penalties imposed can be increased insurance premiums. In this instance, it would be reasonable for the landlord to set out a condition for these costs to be recoverable from the tenant through an itemised invoice.
It is also reasonable for the property owner to ask to see the sublet agreement before agreeing to the sublet.
If you have any questions about subletting, ending a lease or finding new tenants, get in touch with your local Quinovic office. We’re a nationwide team of property management experts and have managed over 100,000 tenancies since 1988. When it comes to legislative matters, we have a professional understanding of all new and existing rental property laws. No matter how big or small your question is, we’ll be happy to help. Ask Quinovic today.
