There are a variety of reasons why your tenant may ask to sub-lease in California. Some landlords are fine with it, while others are not. Learn more about the process in our latest post!
Sublets can work out just fine so long as the tenant has received the permission of the landlord. All contracts need to be comprehensive so that all parties are aware of their roles. When your tenant sublets to someone else, they are entering into a new agreement, however, their lease with you, the landlord, is still in effect. Taking the necessary precautions will ensure your rental property remains a healthy investment.
Legalities
Before you agree to let your tenant sublease the property to someone else, you will need to make sure you are operating by all rules, regulations, and bylaws of your community. You don’t want to find yourself penalized or fined for letting your tenant rent the property to someone else on your behalf. Once you have researched this, you can take the next step to letting your tenant sub-lease the property out to someone else.
Your tenant will need to have permission from the landlord to legally sublet the property. However, there are some cities that allow tenants to sublet under certain circumstances, even if the lease forbids it. As the landlord, you will want to make sure you know what the specific rules are in your city.
Proper Contracts
When you are letting the tenant sublease the property, you’ll need to make sure all contracts are filled out accurately and legally. The contract needs to be written to eliminate your liability should something go wrong. You will want to protect yourself in this situation at all costs. Make sure to have all of the specifics worked out ahead of time. Who will the sublettor send the rent check to? How will utilities be handled? There are a number of things that should be in writing before someone new moves in.
Responsibility
It needs to be made very clear that if the person subletting the house doesn’t pay rent, your original tenant is still on the hook. They are ultimately responsible for fulfilling their role in the lease you have with them. If rent isn’t paid, if the property is damaged, or if the person subletting skips town, they will need to pay the rent and fix the property per the original lease agreement.
Advertising
If your tenant is advertising the house for sale on their own you’ll want to make sure that they are abiding by all fair housing laws. By not doing so, they can put you at risk of violating the law. If you allow them to advertise, make sure that you review what they are saying to make sure everything is done legally.
Tenant Screening
Will they be doing all the screening or will you want to be involved in the process? You should set specific criteria so that your tenant doesn’t end up subletting to someone who will be a nuisance. The person moving in needs to be responsible and able to pay the rent each month. Encourage your tenant to collect a deposit to help cover the loss should anything go wrong with the living arrangement.
Allowing your tenant to sublet the property can be beneficial in many ways. Let’s say you have a great long-term tenant who has taken a position elsewhere for 6 months. Having them sublet the property to someone else is better than a vacant house or having to battle them over a broken lease. When the right subletters move in, the arrangement can beneficial for everyone involved. A short-term renter will find housing, your tenant will be able to return to the house when they are ready, and you will continue to collect your rent check each month.