Posted by Admin - 01/03/2016
Research has shown that one in 6 tenants have admitted to sub-letting part or all of their rented home to some one who is not on the tenancy agreement.
As a landlord, have you ever considered if your tenant is sub-letting your property?
Sub-letting is most common in the North West and West Midlands, where 27 % of private tenants admit they have sub-let their properties, London at 23 % is 3rd but least likely to sub-let are renters in the South East at 9% and those in Northern Ireland at 7%.
Consequences of sub-letting
Those tenants who are caught subletting face repercussions such as eviction or loss of deposit. According to Direct Line Insurance, 22% of cases had an increase in rent, 14% issued a fine and a further 8% issued formal warnings to the tenants.
Why do tenants sub-let?
Average rent is now approximately one third of income, which means tenants are choosing to sublet their home to offset rent increases. An additional person contributing to the household can be too great a temptation, causing them to break the terms of their agreement. Some only go as far as sub-letting to friends and family which is easier to disguise from an unsuspecting Landlord, however, some have admitted to placing adverts and sub-letting to strangers.
How does Sub-letting affect me as a Landlord?
Sub-letting can affect landlord insurance as it may well be something that is not covered on the policy, therefore, it is important to identify if your tenants are engaging in such behaviour.
Periodic inspections of the property will help provide any clues as to whether you have permanent guests that are not named on the tenancy.