If you’re a property owner or manager, you know how expensive it is to find new tenants. There’s the cost of cleaning the unit, marketing it, and the loss of rent while it sits unoccupied. So, keeping it occupied is always the ultimate goal.
But, is it worth it to the extent you’d allow a subletting contract to occur? Say, for instance, a tenant must go away on business for 6 months, doesn’t want to lose the unit, and has a viable option for a friend to assume the lease in his absence. Do you allow it? The choice is yours, with these considerations in mind:
Reasons to allow a sublease:
- The original tenant assumes full responsibility for the continuation of the lease, leaving little to no risk on your shoulders for the subletting tenant.
- The original tenant pays the rent and the subletting tenant pays him back. This way, you are not the one who is ‘out’ the money.
- You retain right of approval/refusal for any subletting tenant. This is a given. Every person residing on your property for any length of time is subject to screening.
- The unit is occupied and continues to generate revenue instead of sitting vacant.
Reasons not to allow a sublease:
- If your original tenant has already proven to be difficult and unreliable, the situation may worsen when he or she is off the premises.
- While you can refuse any proposed subtenant, the screening process is out of your hands.
- In the event legal problems should arise, coordinating with the original tenant and the subtenant could prove to be a logistical nightmare.
The question of whether or not to allow a tenant to sublet one of your units is one that should be answered carefully and with a great deal of thought. For more information or to hire a team who can help you deal with issues like this, contact Class A Management at 817-295-5959 or .