Renting a property is a major expense.
It may be challenging to meet your monthly payments.
Lots of people turn to subletting for this reason.
But whether it’s a smart idea depends on several factors.
What is subletting?
Subletting is when a tenant lets out property that they don’t own.
This usually refers to one bedroom in the house, which they allow someone else to stay in. But sometimes, they may let out the entire property and live elsewhere.
The person they sublet to is known as a subtenant (or a subletter).
Subletting is common in the United Kingdom and is legal under certain conditions.
Do I need to create a new contract when I sublet?
Yes. You should always create a new contract when you sublet your property.
To start with, you’ll need a written agreement with the subletter. This explains terms such:
- Payment
- Behaviour
- Length of time.
And more.
You should also speak to your landlord.
If your tenancy agreement already permits subletting, and outlines all the terms, then no changes may be necessary.
But a new contract (or amended terms) is needed if it doesn’t.
Disobeying a contract is problematic behaviour. Landlords can evict tenants who do this.
Am I allowed to sublet?
It depends on your written agreement with your landlord. This contract should answer this question.
Even if it’s forbidden in the contract, you could ask your landlord. But they’ll probably say no unless the contract is seriously outdated.
It could even sour your relationship that you asked.
In some cases, a council can stop you from subletting your home. This may be a reason that your landlord forbids it in the first place.
Overcrowding is a typical explanation, especially in blocks of flats. In some council homes, subletting the entire property is also forbidden. But just one room is fine.
Do I need to tell my landlord when I sublet?
In most cases, yes.
In rare cases, your agreement could say that you have no obligation to inform them about subletting.
What happens if my subletter damages the property?
You are responsible for damage done to a property you’re renting. Even if the subletter does this.
The only exception is if your original rental agreement says otherwise. But this is extremely rare.
Although, in your separate agreement with the subletter, you can specify for them to pay for any damage they cause.
Hopefully, they’ll pay up if this occurs, covering your expenses to the landlord.
But if they refuse, it can go to court. You may then need proof that they did it.
Advantages of subletting
Increase your income
The main reason that people sublet is to increase income. You can rent out a room that you aren’t using.
This is useful for meeting your monthly rental payments. Especially if you don’t mind living with someone else.
Flexibility
Subletting means that you can move out at a moment’s notice without breaking your lease.
Hopefully, your monthly payments will still be met with the support of your subtenant.
This allows you to go on a more extended holiday or temporarily move in with a loved one.
Someone to talk to in the house
Living by yourself can be lonely. Subletting your property gives you company.
Disadvantages of subletting
Legal challenges
There are quite a few legal headaches that come with subletting. You’ll need to get a new contract created with your subtenant.
And problems may come up around lease violations and liability. Failure to pay rent or damages are also common.
Reduced autonomy
You’ll no longer be the only person living on your property.
You may need your roommate’s permission to turn the heating on or bring friends around.
This can sometimes lead to arguments, if it isn’t handled well. Your subtenant may want to branch out in various ways, too.
Potential for increased costs
There’s no guarantee that your subtenant will always make timely payments.
But having them live there will increase your costs, like:
- Electricity
- Heating
- Home nsurance.
You may thus need to cough up the extra money if they don’t pay when they should.
How much money can I make from subletting?
This depends on several factors. The main ones are your location, the size of your house, and how many rooms you’re subletting.
In Central London, you’ll often find one-bedroom sublets for £1,000 per month. This could be higher in the more expensive parts or lower in the affordable areas.
In the north of England, one-bedroom sublets can be found for £400 per month. This also applies to Wales, Scotland and Northern Ireland.
You could use online websites to benchmark what’s currently available in your area.
A local property expert can also advise. Remember to factor in the square footage you’re offering.
