The process of subletting appears to be quite simple: you move out temporarily and somebody else will be paying the rent – a win-win situation for both parties. But in fact, things are never that easy and if the details aren’t taken care of correctly from the beginning, the original tenant can be left in a bad position legally.
You’re Not Just A Tenant Anymore
When you sublet your rental you become a master tenant. But master sounds so official, commanding even.
The term master tenant, however, is really just a shorthand meaning the current tenant becomes the landlord to a new tenant. And really, it’s a bit of a misnomer since you actually have more responsibilities when you sublet than a typical tenant.
Consent Isn’t Optional
Subletting without obtaining written consent from the landlord is often regarded as a material breach of the lease. This allows the landlord to immediately terminate the master lease, which would put both you and your subtenants out on the street. The landlord is not required to grant any warnings in advance of taking such peremptory action – all it takes is a single violation of the covenant.
Other leases simply include a blanket prohibition against subletting. Still more leases stipulate that the landlord’s advance written consent is required before adding any secondary occupants. Given all the potential legal landmines, remember the first general rule: check your lease before you take any actions. If your lease makes no mention of subleases, there are no grounds for assuming that permission is implied, so seek out your landlord in writing and have it properly documented.
The bet-your-bacon mandate from homeowner association rules or body corporate bylaws is another twist you’ll have to watch out for because even if your landlord says it’s okay, a prohibition in the building’s rules can automatically override the acknowledgment of the property owner.
Subletting Versus Assignment – They’re Not The Same Thing
Subletting is relevant if you want to come back to the home. Essentially, you’re giving up the property temporarily, but your position under the head lease is still running. On the other hand, an assignment means you’re transferring the entire lease to someone else and you’ll be leaving that obligation.
In the case of an assignment, once the landlord agrees, you won’t have any more responsibility.
The Sublease Agreement Protects You Too
An oral agreement with your subtenant won’t cut it. You must create a written sublease agreement that reflects the fundamental terms of the head lease – the rent amount, payment timetable, regulations regarding guests, pets, noise, for maintenance responsibilities, and procedures if something needs repairs.
Otherwise, there’s no legal recourse available to you to penalize your subtenant or recoup expenses if they cause harm. Imagine you are a property manager. Consulting tenancy dispute lawyers can be valuable in this case as well when the relationship breaks down between landlord, head tenant, and subtenant, and it goes before the board, because casual agreements are not worth the paper they’re not written on.
You are likely also required to ensure the bond is lodged correctly. Similar to renting, in most jurisdictions, the bond you collect from your subtenant must be lodged through the official government-approved system – you can’t just retain it in your account.
Vetting Your Subtenant Like A Professional
The biggest mistake most tenants make is subletting to a pal and waiving the kind of vetting you’d hope any landlord with a rental relationship would impose on you. They’re your friend’s friend, not some random off the street. Except, sometimes this stuff happens.
Your financial exposure is real. Approximately 33% of renters are currently living in share houses or subletting arrangements, yet many fail to update their formal lease agreements, leaving them without legal protection in the event of a dispute. That gap between informal practice and formal documentation is where most subletting disputes originate.
A vetting checklist doesn’t need to be complicated. Previous rental history, identity verification, income verification, and a signed sublease agreement before keys change hands – these four steps eliminate most of the foreseeable risk.
Getting The Structure Right From The Start
Subletting might be a solution. It’s a good way to handle a short-term move without ending a lease early and forking out for breach penalties. But it’s only an answer if you treat it like the legally binding process it is, and not like an easy hand-between-friends when there’s trust involved.
The paperwork, the permission, the checks – it’s not there as red tape. It’s what stands between you and an arrangement that falls apart and leaves you at risk after one missed cheque or a trashed living room.
