As the owner of residential rental property, you likely screen potential tenants carefully before handing over the keys. But what if you aren’t the one making the decision about a new person (or persons) moving in?
That might not turn out very well for you!
Subletting occurs when someone who is leasing a property rents it to another individual(s), while the original tenant’s name is still on the lease agreement. Some tenants do this if they have to move out of a property before the term of their lease is up, as it could prevent them from having to pay an early termination penalty.
But there are other situations where subletting may be used, too, such as when a new roommate moves in, and the original tenant wants to ensure that everyone follows the rules and pays their share of the rent.
If you don’t want to open the door for potential issues with a new tenant, you could state in your lease that subletting is not allowed, or that the original tenant obtains your consent before bringing anyone else into the property.
You could also place restrictions on how much they can charge the new tenant or tenants. (In some cases, there are rules regarding how much someone can charge for a sublease). In addition, you could also require a security deposit paid directly to you from the new lessee.
While there are both pros and cons to subletting a home or apartment that you own, doing so can require some time to set up and put into place. So, if you would rather hand off these tasks, working with an experienced local property management team can help.
Central Florida Property Management has more than a decade of experience helping real estate investors manage their properties. Just some of our services include finding and screening tenants, collecting rent, responding to emergencies, and taking care of regular ongoing property maintenance.