In this post, I would like to share with you a true story happened recently. It touches the topic of sublet. Via this story, I will explore the following
01). Why sublet is to be avoided
02). What is a better alternative
03). Lesson learned from this case.
Let’s get right into it.
Back to May 2020, a young couple in their late 20s applied a townhouse from us. They are both engineers, witty, polite, with excellent income, great credits, fantastic references from previous landlords.
In short, they are great tenants any landlord can hope for. They loved the home and we signed in 1 year lease. Things went great after till we receive an email from them in September.
What had happened was due to the economic downturn, they have to relocate. The amazing part of this couple was that they took the ownership of the issue outright – they appreciated how we have treated them in the past (it feels great when your tenants feedbacked in this way!), and proposed the sublet option to have someone taking over the lease from them, and they were fully aware that they shall be responsible for the lease/rents till it is rented out.
I was duly impressed with the maturity demonstrated by the young engineer couple, and the thoughtful initiative they proposed – The sublet. Via the link here, you will find a bit more about the sublet. In essence, it works like this –
the tenants can sublet their home with the writing consent from the landlord.
landlord can not refuse without a good reason (No one knows what “good” really mean)
the tenant who sublets the house is still responsible for the rents.
As a seasoned landlord, I am not a big fan of the sublet. This is because at the first glimpse, it seems a quick and easy fix, but in the long run, this approach can surreptitiously cause many issues that could be troublesome to both landlord and the main/original tenants. I will lead you through these pitfalls in the next section.
Instead of sublet, the so-called “re-renting” option is a much better option. Here is how it works.
First of all, way before any of this happens, we need to have the originally lease clearly stated that there is no sublet option available, instead, we offer what we called “re-renting” option. Here is how it works.
We went over the process with the couple, they were very cooperative. Long story short, this house was rented out in less than 10 days. New lease signed, and everyone moved in, out and on.