Skip to Content

Is It Ever a Good Idea to Let Your Tenant Sublet?

San Antonio Tenant Handing Keys to a SubletterIf you’re anything like the rest of the rental property owners, you carefully screen and select your tenants. However, some renters may try to reduce their rent payments by subletting to another person — with or without your authorization. When a renter has a long-term lease but will be away from home for an extended period of time, subletting is a common occurrence. They may find that subletting is a better choice than breaking the lease.

When a tenant decides to rent out a bedroom or another area of the house while still living there, this is known as subletting. Your tenant may not see any issues with this arrangement, but as a property owner, is allowing your tenant to sublet a wise idea? Let’s look more closely at some of the upsides and downsides of tenant sublets.

Who is Responsible?

There are two types of subletting: legal subletting, in which the landlord has given the tenant permission to rent all or part of the property to another tenant, and illegal subletting, in which the tenant does not have authorization. In every case of subletting, the original tenant is still responsible for adhering to the lease terms and for paying the full rent. This is true even in circumstances of lawful subletting. Even in ideal conditions, subletting demands a high degree of faith in your original tenant to maintain compliance with their subletting tenant.

Reasons to Say No

Allowing or prohibiting subletting is largely up to the San Antonio property manager or landlord. There are a few exceptions where homeowners’ associations or other rules prevent a property from being sublet. If subletting would contravene such agreements, that may be the only reason you need to ban your tenant from subletting.

Another reason to prohibit subletting is that if your primary tenant is away and the subletting tenant defaults on rent, you will be unable to collect from them. Rather than that, you’d have to locate and collect payment from your original tenant, which may be a lengthy and complicated procedure. It’s critical not to accept any payment from a subletting tenant if the sublease is illegal. Accepting money from a tenant, even if it is illegal, may grant that tenant rights to the property that you can only get rid of by eviction.

Reasons to Say Yes

On the other hand, some property owners may permit subletting in order to maintain occupancy, particularly if a tenant is gone for several months or longer. Maintaining a positive connection with your tenant is beneficial, and allowing them to make arrangements that suit their requirements is another incentive to say yes. Allowing your tenant to sublease may also assist you in avoiding vacancies and turnover expenses, as long as the rent is paid on a monthly basis.

Subletting Agreements

It is critical to have a well-defined subletting agreement in any subletting arrangement that details your expectations and your tenant’s responsibilities. Indeed, whether you permit subletting or not, your lease should include a section outlining what is and is not permitted.

If you choose to allow subletting, ensure that you screen the subletting tenant in the same manner as you would any other tenant before granting consent. Then, create and have all parties sign a sublease agreement that details the subletting arrangement’s terms and conditions. This may assist in providing additional protection for you and your property in the event of a crisis.

Do you still have questions about whether you should allow your tenant to sublet your rental property? Contact Real Property Management Hill Country to speak to a rental property expert today!

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details