Subletting is when a tenant rents all or part of a landlord’s property to someone else, who’s known as a subtenant. The subtenant pays rent directly to the original tenant, instead of the landlord.
Anyone living permanently in a rental property who isn’t named on the tenancy agreement is a subtenant. However, someone staying in the property on a short-term basis (with your permission) isn’t considered a subtenant.
Tenants sublet in different ways – they may rent out an extra room in the property while they’re still living there, or rent out the whole property while they live at a different address. The reasons for subletting also vary. For example, an existing tenant may need to move away for a few months, or they may need more tenants to help pay the rent.
If you’re renting a property, then it’s more than likely you’re renting directly from a landlord who owns the property. In some cases though, you may find that you’re renting from a tenant who rents your home from the owner. This is what’s known as subletting. If you’re considering subletting, here are the answers to two common questions.
The difference between subletting and lodging
Lodging is different from subletting as the lodger doesn’t have exclusive use of the property. This means that the landlord or another tenant could go into their room.
On the other hand, a subtenant will have exclusive use of the property or a specific room. This means that, as with normal tenants, landlords will need to ask for permission to enter the subtenant’s space.
Landlords should make it clear in the tenancy agreement whether they allow tenants to accept lodgers. For example, the tenancy agreement may explain that the landlord allows tenants to accept lodgers under any circumstances, under certain conditions, or not at all.
Is subletting illegally?
Subletting is illegal if a tenant needs their landlord’s permission to sublet and they do so without getting it. It’s also illegal if a tenant sublets a property when their tenancy agreement says they’re not allowed to.
Breaking the tenancy agreement is a fraud, so when this happens landlords can take legal action such as an eviction.
What is legal subletting?
Subletting is legal if tenants have your permission to rent to someone else. You might make it clear in the tenancy agreement that you’re happy for tenants to sublet, or you may say they need to ask your permission.
In some cases, subletting can be beneficial for both parties. For example, if you have a long-term tenant who needs to work away for a few months, subletting a room allows you to keep the tenant and make sure the rent is still being paid.
This solution is less hassle for you as you don’t have to relet the property, and you won’t have a void period.
However, it only tends to work if you have a good relationship with your tenant and are able to vet the subtenant before they move in. It’s also worthwhile to have a subletting agreement in place before the new tenant starts paying rent.
Can landlords refuse to sublet?
If you don’t want tenants to sublet your property, you’ll need to make it clear with a clause in the tenancy agreement. The clause can say that you won’t accept any subletting, or that you’d allow it if certain conditions are met.
If the tenancy agreement allows subletting in some cases and the tenant wants to sublet, they’ll need to ask your permission.
If a tenant asks your permission to sublet and you want to refuse, you’ll need to have a valid reason, for example, your mortgage lender won’t allow it or it would invalidate your insurance.
It’s important to make any subletting clause in the tenancy agreement clear with no room for interpretation.
If you don’t allow subletting, or provide a valid reason for refusal and the tenant sublets illegally, it’ll be easier for you to take action if the contract is clear and you have a record of any communication about subletting.
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