What Landlords Need to Know About Subleasing
What Landlords Need to Know About Subleasing
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Sep 14,2022

What Landlords Need to Know About Subleasing

The main goal of owning or managing rental property is to ensure they are rented and monthly payments are made on time. However, there are some circumstances that property managers and landlords can’t predict, and tenants move out earlier than expected. This comes down to whether or not you should allow your tenant to sublease. If you are a landlord and you’ve faced a similar situation, it is not always straightforward, and 3 Options Realty can provide pertinent information to help you make an informed decision. Here’s what you need to know before letting your tenant sublease.

Getting the Leasing Process Right

Whether it’s your rental home or apartment, when it comes to subleasing, there are two ways to go about it: assign a lease or subleasing, also known as subletting. Again, it is critical to consult a professional property management company before making up your mind to ensure you do what’s suitable for your rental property.

Subleasing or subletting is a legally binding contract between the previous tenant and the new one. The contract allows the subtenant to take over or share the rented space with the previous tenant. This means the new tenant doesn’t pay rent directly to the property management company or landlord but the original tenant. However, the rental owner still holds the first tenant liable for any damages caused by the subtenant; alternatively, the subtenant pays rent directly to the landlord.

Assigning a lease, on the other hand, means the new tenant takes over the obligations of the original lease. At the same time, this marks the end of the relationship between the landlord and the first tenant, as the subtenant assumes all the responsibilities and rights. Therefore, the first tenant must consult the landlord or property management company before subleasing.

Short-Term Leasing Vs. Long Term Leasing

When it comes to subleasing, you can have short or long-term leasing. If the first tenant intends to vacate for a short time, then a short-term lease is the preferred option. This is often a suitable solution when a student only rents an apartment in the summer or when a tenant decides to travel and doesn’t want to continue paying for an empty apartment.

On the other hand, a long-term lease occurs when a tenant permanently vacates the premises before the lease expires. In most scenarios, the new tenant takes on the responsibilities of the original lease, absolving the first tenant of their legal obligations to the lease.

The Subleasing Process

The first rule of subleasing is that the tenant can’t sublease the rental unit without the written consent before proceeding and compliance with the lease terms. When a tenant decides to sublease the rental unit, it is up to them to find suitable tenants.

Whether an assignment or a sublet, property managers and landlords need to follow basic steps to ensure the success of a lease and high-quality tenant, we believe that subleasing can win the tenant and landlord if the process is done correctly. Contact us at 3 Options Realty and schedule a consultation with our experts to learn more about the subleasing process.

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