When you find the perfect rental unit, the last thing you want is to let it go. Sadly, circumstances sometimes require you to move away, but it doesn’t necessarily mean you have to terminate your lease agreement. Subletting has been a common practice among tenants who plan to return to the rental unit in the future or don’t want to pay fines for early lease termination.
Key Highlights:
- Subletting allows tenants to rent out all or part of their unit while keeping the original lease active, making it a useful option for avoiding early termination penalties.
- Benefits include avoiding fines, keeping a desirable rental unit, and in some cases, earning profit by charging higher rent for short-term stays.
- Risks involve remaining legally responsible for rent, damages, and violations, along with potential disputes and limited access to the unit if you need to return early.
- Landlords often require written approval for subletting, even if the lease agreement permits it, to ensure all parties are protected.
- A written sublet agreement and clear communication of property rules are essential to avoid conflicts and establish accountability.
How Does It Work?
Subletting, also known as subleasing, occurs when you (the sublessor) rent out all or part of your rental unit to another person (a subtenant). The original lease will still be active during the subletting, which means that you will still be legally responsible for the property.
As you already suspect, this comes with many advantages and disadvantages. You have to weigh whether or not the risks outweigh the benefits, and decide if you should just let the property go and look for a new one when you return to the area.
Benefits of Subletting
Avoiding Penalties for Lease Termination
Depending on the terms you agreed to in your lease agreement, you may have to pay a hefty fine if you end your lease early. Subletting lets you keep the contract active, if only to fulfill the lease term. Of course, you have to inform the subtenant how long you’ll be renting the unit out for.
Keeping the Property
It’s difficult to find good rental properties in some locations, so it’s understandable why you may be reluctant to end your lease. By subletting your rental unit, the lease agreement remains active until you decide to live in the premises again.
Profit from Rent
Unlike other cities, you can profit from a sublet agreement, meaning you can charge more than you typically pay for rent in Austin, TX. Many tenants would agree to these terms, especially if they are only looking for a short-term stay. You are still expected to set a reasonable rental rate, or your potential subtenant will simply look for other options.
Risks of Subletting
Remaining Liable
You are still legally responsible for the rental unit, which means that you will incur penalties if the subtenant doesn’t pay, you’ll cover costs when they cause damage to the property, and you’ll face the consequences of their lease violations. You can prevent this from happening by screening your subtenant carefully, but the risk will always be there.
Unit Won’t Be Available Right Away
If you have an agreed-upon duration of stay on contract, you can’t just kick your subtenant out by the time you need the rental unit. You will have to wait for the availability, so you can either delay your return or cover your subtenant’s costs for the remaining term. With the latter option, you’ll have to convince your subtenant to vacate, and they are entitled to decline.
Potential Disputes
When your subtenant commits any form of lease violation or has any issues with other tenants in the rental property, the problem will extend to you since you are responsible for them and the rental unit. With you likely far from the property, you may find it difficult to resolve these matters, especially if they need to be addressed in person.
Subletting Rules You Should Know
Once you’ve assessed your situation and decided to sublet your rental unit, you need to learn the rules that affect you, your subtenant, and your landlord.
Check the Lease Agreement
Some landlords prohibit subletting arrangements because of the complications that can arise. Doing so can count as a lease violation and could even get you evicted. If you’re set on subleasing your rental unit, you can speak to the landlord and ask if there’s anything you can do to make it happen.
Get the Landlord’s Approval
Even if the lease agreement states that you are allowed to sublet your rental unit, you still need to acquire a written approval from the landlord to make it official. That written consent protects all parties involved, as it is legally binding.
Draft a Written Sublet Agreement
A written sublet or sublease agreement will also serve as a legal document, as well as a guide for your subtenant to follow. It will outline the rental rate, duration of stay, obligations, due dates, and penalties for violating rules. The lease term should not exceed that of the original lease.
Abide by the Property Rules
The rules that applied to you when you were a tenant will also apply to your subtenant. It’s your responsibility to explain what the lease terms are to them so they can follow each one. Outline each rental property rule in the sublet agreement, which also protects you from any claims that you failed to take the necessary steps as a sublessor.
Rental Unit Subletting FAQs
Do I need my landlord’s permission to sublet?
- Yes. Many leases require written approval from the landlord before subletting. Doing it without consent may result in eviction or lease termination.
How is subletting different from assigning a lease?
- With subletting, the original tenant remains on the lease and is responsible for rent and damages. In a lease assignment, the new tenant takes over the lease entirely, and the original tenant is usually released from responsibility.
Who is responsible if the subtenant doesn’t pay rent?
- The original tenant remains legally responsible to the landlord. Even if the subtenant fails to pay, the original tenant is still responsible for covering the rent and any resulting damages.
Can I sublet just one room instead of the whole unit?
- Yes. A partial sublet (like renting out one bedroom) is common, especially in shared housing, but landlord approval is usually still required.
What should be included in a sublease agreement?
- Key details include rent amount, payment method, lease duration, responsibilities for utilities, property rules, and security deposit handling.
You Can Always Find Better Homes
If you don’t want the potential stress that comes with subleasing your rental unit, you have the option to end your lease when you can, and a rental unit will be waiting for you. Austin Property Management offers rentals you can filter by property type, number of beds and baths, and price range to suit your needs.
You can find a similar property, if not better, and you can expect efficient property management once you rent a unit. We take care of our tenants just as much as we do with investment properties, and we are always available to answer your inquiries.
Searching for an ideal rental property for you? Reach out to us!
