As an experienced landlord, you know how critical it is to thoroughly vet a prospective tenant before agreeing to any lease, long or short term. If you want to cash flow on your properties it helps to have cash coming in the first place, right? Having a good tenant leads to not only a profitable rental but a stress-free one at that.

should you allow sublet

In some markets however, and even in specific incidences, a tenant may need to temporarily vacate the property for a month or two. Even more so if your units are located in a college area where students leave for the summer to return yet again in the fall.

Should you allow your tenant to sublet?

First, why would you allow that in the first place? After all, you performed an employment and credit check and the tenant checked out okay, why would you take the risk of having a new, unknown tenant temporarily change places with your trusted tenant?

Sometimes allowing subletting privileges helps to keep the unit rented, especially when temporary vacancies are relatively common. If allowing a sublet is a marketing piece for your property, then it’s something to consider. And if you do agree to sublet, make sure there are specific guidelines included in the original lease agreement.

The first is to let your primary tenant know that regardless of the person subletting, your tenant is still responsible for the rent, not the temp. If the person subletting pays late, the late payments go to your tenant, not to you. Your agreement should clearly state that your tenant is responsible for paying you each month and should collect the sublet rent from the temporary tenant directly.

Second, a sublet agreement is only valid if you have met and interviewed the new person. There’s no reason to do a credit check or employment, although your agreement should allow you to do so, but you want someone that you feel comfortable occupying your property, even for a short time. Finally, put a limit on the sublet, say no more than 8 weeks out of the year. You don’t want your property turned into a motel with multiple renters.