Real Estate Tips From a New Homeowner

Own Rental Property? Why You Shouldn't Allow Your Tenants To Sublease

Do you have a real estate that you use for rental income, and also use a property management company to help take care of them? If so, the property management company may ask you if it is okay for your tenants to sublease if they need to break their lease early. Here are two reasons to not allow any of your tenants to sublease.

New Tenants Can Be Unreliable

One of the benefits of hiring a property management company is that they are the ones that screen all of your tenants before they start a lease. Their goal is to find the best possible tenant that will ensure that your rental property is in great condition at the end of the lease.  They talk to the tenant, do a background check, and even call references for previous landlords. 

When you let your tenants sublease their rental units, you are essentially putting the screening process in their hands. You do not know where they are finding a new tenant and what kind of background check they are performing. All they are doing is finding the first person that is willing to take over the remainder of their lease so that they can get out of it.

Subleasing Causes Confusion

When you screened the original tenant for the unit, there were many things that were made clear to them when the lease was signed. You're able to verify that they know the rules of living in the unit, what maintenance they are responsible of doing on their own, and even little things like how to get in touch with the property management company if they need assistance.

When a sublease happens, you won't be sure what the new tenant was told when they move into the unit.  They could be given incorrect information or no information at all, leading to confusion about the agreement that comes with renting the unit.  Not allowing a sublease is the easiest way to avoid the problem, because that puts control back in your hands.

If a tenant does need to break their lease early, let your tenants know that they should work with you and your property management company to find a solution.  The property management company can get a head start on finding a replacement tenant to coincide with the date that your old tenant wants to break their lease, which will help create a seamless transition where you are not losing rental income. 

About Me

Real Estate Tips from a New Homeowner

While some people "wing it" when purchasing their first home, I went about the process differently. I put a lot of research into home market trends before even deciding where I would like my new home to be located and learned about all of the steps of the buying process. Once I was ready to start looking at homes, I hired a real estate agent who was very impressed with all the knowledge I had accumulated about the home-buying process before I even owned my first home! I love learning, so I actually greatly enjoyed learning all about real estate, and I am still keeping on top of the latest real estate news and trends since I know they will come in handy when I decide to upgrade into a larger home in the future. I decided to help others by sharing what I have learned on a blog!



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