As a landlord, there will be situations when you will consider a sublease agreement. It will depend on whether or not you will allow a renter to sublet the property. Subletting is an excellent tool when a current renter to go out of town for an extended period. You will continue to receive rental payments for the same apartment.
Many landlords are strongly against their tenants subletting their properties out. However, there are some instances where a sublease agreement is beneficial. A sublet agreement can offer the following benefits:
Good tenants are difficult to find. Allowing a tenant to sublease your property could be just the thing to keep them for many years. Especially if you have a tenant that travels regularly for work. If you allow them to rent out the space when they leave, they are more likely to stick with you for many years. This is because they know other landlords aren't so open-minded.
Allowing your tenant to rent out your property can also help you avoid eviction or breaking a lease. Instead, someone can cover the costs while you continue collecting monthly rent checks. This is the perfect solution when tenants can no longer meet their obligations. A sublease agreement isn't the right option for every situation. However, it can be a powerful tool for protecting property and staying profitable.
Subleasing comes with obvious perks. Simultaneously, it comes with some definite downsides as well. Allowing your current tenant to sublet the property will ensure money comes in. However, it can also lead to serious property damage or potential legal issues. The first thing you need to think about is the necessary paperwork. You will need to protect your property and make the new person liable for any damage. Take action to protect yourself and your building. A sublease agreement will make sure that this happens. There is also a risk that the new tenant isn't going to care for your property as well as the current tenant has. The new person could do some serious damage to the apartment. If you aren't sure about a sublet candidate, consider screening them. Otherwise, stop the other person from ever moving in to preserve your property.
There is a fair bit of risk when allowing your current tenant to sublet out your property because they are bringing in another person that you don't know very well to your property. That person could bring in pets that damage your floors. They could hold huge house parties and trash your property as well. That's why it's so important to do background checks and credit checks on these people as well. Make sure that you have a clause about sublease agreements in the original lease agreement stating that subletting isn't allowed without prior approval from you. This gives you a chance to evaluate the situation and make sure the proper paperwork is filed.
You should also look into sublease agreements and sublease forms that make your current tenant liable for any issues that the subletter causes. A sublease agreement can be a useful tool to keep money coming in and prevent issues with a current lease, but it's not something that you want to allow to happen without taking some steps of your own. Do all the standard checks on the person that might be moving in, and make sure that a contract is in place protecting you and your property.
Before you consider allowing your tenant to sublet your property, make sure you have a sublease agreement in place and you understand the laws regarding such a situation. If this all seems overwhelming to you, or you are tired of dealing with unreliable tenants, you can alleviate the issue by investing in a property management company like Blueground. We specialize in finding quality tenants, forming reliable lease agreements and leveraging tools like subleasing, fully furnished spaces and regular maintenance to maximize profits for your business. Contact us to get help managing your properties by subletting your property to quality senior business executives.