‘How can I sublet my apartment?’ is probably a question that most of us have thought of.
But what is subletting? And how can I sublet my apartment and reduce my rental expenses?
Let us find out all about it below.
Table of Contents
What is Subletting?
Subletting refers to when a tenant lets out the property to another tenant.
Here the original tenant becomes the sublessor and the new tenant becomes the subtenant or the sublessee.
Pros of Subletting
Subletting can be beneficial for tenants as they can earn additional income, reducing the burden of rent. Tenants also sublet when they are required to move around for education or work and they need someone to take care of the property.
Landlords can benefit from subletting by charging tenants a sublet fee. They can also rest assured that their property is being maintained even if the original tenant is not present.
Landlords may typically not allow tenants to sublet, and may include clauses in the rental agreement that prohibit the tenant from subletting. In such a situation, it is best to have a talk with your landlord and explain to them how subletting can be beneficial.
Cons of Subletting
Tenants may find it difficult to find an ideal sublessee. It proves to be a time-consuming process to find someone who meets your as well as the landlord’s conditions. Moreover, the tenant has to keep in mind the risk that he/she faces – they are liable for any damages to the property or any default in payment of rent.
Landlords do not have any control over who their tenant sublets the apartment to, and this can bring about uncertainty over the quality of tenants on the property as well as the state of the property. Furthermore, landlords have to keep in check whether they need to perform any additional procedures to comply with subletting and subleasing regulations.
How to Sublet
If you are planning on subletting your apartment, start by talking to your landlord and flatmates and understand the process of subletting in your region. The rules and process may differ depending on your location.
Step 1: Know your lease and laws
Your state or country might have certain subletting laws that you will need to follow.
It might be compulsory to pay a subletting fee, or you may only be able to sublet if it is permitted under your lease. Hence, you need to go through your lease again to see if your lease stops you from subletting your property.
Step 2: Talk to your Landlord
A subletting/subleasing process will take place smoothly if you inform your landlord of your plan in advance. This is a transition for you and your landlord, and therefore it is important to communicate your decision of subletting. Your landlord may also help you with the process of looking for a new tenant that meets both your requirements.
Step 3: Find your Subtenant
The next step would be to find your subtenant.
You can start by looking amongst your friends, neighbours or co-workers. This is the easiest way of finding qualified tenants whom you can trust.
You can also look for subtenants online – there are multiple subletting platforms that match you with a tenant that agrees to your conditions and the rent payable.
Step 4: Negotiate your agreement
Once you find your subtenant, negotiations will take place regarding the rent payable by the subtenant. You also have to discuss the amount of maintenance charges and utilities’ fees that has to be paid by the subtenant. Once you finalize these details, you can enter into an agreement.
Step 5: Draft your Sublet Agreement
It is crucial to have your sublet agreement be drafted into a formal agreement, as per the laws of your region. This will protect both you and the landlord if your subtenant fails to comply with the agreement.
The agreement will consist of the basic details such as rent, period of occupancy and details of the subtenant. You will also need to add certain other information such as contribution towards utility and maintenance, rules of the apartment, liabilities towards damages and so on.
Documents, Lease Management and Communication – How ADDA can help
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Well, look no further with ADDA’s Property Management Software!
It is the Only Tool you will need to have a well organized property, and make the management of all your properties easy and better!