Subletting can sometimes be tempting when life changes unexpectedly during your lease agreement period.
And while this can be a useful option when undertaken correctly, subletting can also be incredibly risky, especially when the right procedures are not followed, says Adrian Goslett, regional director and chief executive of RE/MAX of Southern Africa.
He explains that subletting might offer a solution to those who do not want to lose their leases because, for example, they might have short-term overseas job opportunities or perhaps they find themselves unable to keep up with rental payments.
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“However, not all lease agreements will allow a tenant to sublet the property. Tenants need to check their rental agreement before considering this as an option.”
Even if you are permitted to do this, Goslett adds that subletting can be a risky undertaking because all responsibility ultimately remains with the primary tenant.
“If the person you are subletting to skips a payment or damages the property, you will still be held liable for it. That is why it is so important to screen potential sub-letters thoroughly and to set up a comprehensive subletting agreement before going ahead with this arrangement.”
There are several subletting arrangements, including:
- A room-by-room agreement where the primary tenant sublets one or two rooms of the home while he/she continues to live on the property. Essentially, the primary tenant is sharing the space with a sub-letter, usually to help him/her afford the rental payments.
- A short-term agreement where the whole home is sub-let for a limited period only with the understanding that the primary tenant will return to the property to finish the original lease term. This is usually done when the tenant needs to be away from home for a period of time but plans to return thereafter.
- A long-term agreement where the primary tenant essentially moves out of the property and allows a sub-letter to live in the home for the remaining period of the original rental agreement. Once the original lease expires, the primary tenant needs to either renew or the sub-letter will need to vacate the premises.
Although subletting can be useful in certain instances, Goslett says it can also be challenging to manage, and could pose risks to both the landlord as well as the primary tenant – which is why many lease agreements do not allow it.
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