What Happens if You Sublet?

Written By PropertyLoop
February 16, 2021

Although the occupants of a rental property may choose to sublet after hearing it could turn their time away from their main residence into a way of generating passive income, to fill a space left by a previous tenant or to simply supplement their current earnings; landlords can sometimes be left in the dark about their new residents. 

What Happens if You Sublet? PropertyLoop

What Does Subletting Mean?

Subletting is a process that sees the occupant of a property welcome additional tenants into the accommodation, sometimes without the permission or knowledge of the owner.  For the new occupants of the rental to be considered a subtenant, they must have been granted exclusive use of an area of the property in exchange for a rental fee.  

Is Subletting Illegal?

It is essential for renters to understand that before they try and sublet their home it is often the case that they will need the explicit permission of their landlord before they create a new tenancy with their subletter.  

The individual terms of the tenancy agreement may be considered broken if the existing tenant introduced a subletter to the rental property. In most cases the landlords will have reasonable grounds to pursue the repossession of the rental property through the eviction process, seeing the tenant be served with a section 8 notice.  

With this being said the owner of the rental property may also choose to issue a section 21 notice, this means that they do not have to offer justification for the repossession, simply that they will reclaim the property once the fixed term comes to an end.  

What to Do if a Tenant Is Subletting?

Of course, it goes without saying that as the owner of the rental property there is no legal obligation to accept a tenancy with the new occupant.  However, whether or not it is possible for the landlord to refuse the sublet will be largely dependent on the details of the tenancy agreement held with the existing tenant. 

Providing that the terms of this agreement stipulate that the occupants must first gain the permission of the landlord before subletting, then the owner will have sufficient reasoning for refusing the new occupant.   

With this being said, if the tenancy agreement that is held with the existing tenant stipulates that they able to sublet with the owner’s permission, the landlord must provide a valid reason for the refusal. This refusal will typically come on the back of the subtenant failing their referencing checks, or the affordability screening.  

Can Landlords Amend the Tenancy Agreement?  

Can Landlords Amend the Tenancy Agreement? Providing that the terms of the tenancy agreement must be amended to accommodate the renewed living arrangements, the landlord may be able to pass on the associated costs to their tenant. Amendments to the tenancy agreement are one of a few remaining charges that were not outlawed with the introduction of the Tenant Fees Act in 2019.  

These charges must be valid, with the landlord being required to show evidence of the incurred costs before charging the tenant. These amends could add the new tenant to the agreement, allowing both the landlord and all occupants of their rental property to enjoy the full legislative protection they are entitled to.  

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With PropertyLoop landlords will have everything they need to let out their rental from start to finish, with no hidden fees, financial barriers or catches; only a revolutionary new way to let.

Landlord RegulationsSub-LettingTenancy Agreement

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