What you need to know about subletting in the Leicester property market
For landlords in Leicester, subletting is a topic that can bring both risks and opportunities. While tenants may find subletting a convenient option to manage their living arrangements, landlords must stay informed and vigilant about the legal and contractual implications.
Here's a breakdown of what you, as a landlord, need to know about subletting in Leicester.
What is subletting?
Subletting happens when your tenant rents out the property, or a part of it, to another person (a subtenant) while maintaining their original tenancy agreement with you. This means that, legally, the tenant remains responsible to you for the rent and any damages, even if they’re no longer living in the property themselves.
Is subletting legal in Leicester?
Subletting is legal, but it comes with several restrictions and conditions, particularly when it involves protecting the interests of landlords like yourself.
1. Tenancy Agreement clauses: Most landlords include specific clauses in tenancy agreements that address subletting. Often, subletting is either completely forbidden or permitted only with prior written consent from the landlord. It’s crucial to have this clause clearly outlined to protect your property and avoid complications with tenants subletting without your knowledge.
2. Consent requirements: If subletting is not addressed in the tenancy agreement, the tenant is generally required to seek your approval before allowing a subtenant to live on the premises. If they fail to do so, it can be considered a breach of contract, which could give you grounds for eviction.
3. Legal Implications of unauthorised subletting: Without your consent, subletting can result in legal issues. For example, an unknown subtenant may create liabilities in terms of property damage, rent defaults, or even legal challenges. It’s critical to stay aware of who is occupying your property to ensure your rights and obligations as a landlord are upheld.
Why should landlords be concerned about subletting?
- Loss of control over the property: With an unauthorised subtenant, you lose direct control over the tenant selection process. This can lead to tenants who might not meet your original standards for tenancy, such as credit checks, references, and background verification.
- Insurance and liability: Many landlord insurance policies do not cover damages or liability caused by unauthorised occupants. If subletting occurs without your knowledge, it could void your insurance or lead to denied claims in the event of an accident, injury, or damage.
- Risk of overcrowding: Unauthorised subletting may lead to overcrowding, which breaches housing regulations. Overcrowding can result in property wear and tear and may bring legal action against you as a landlord for failing to maintain acceptable living conditions.
How to protect yourself as a landlord
To mitigate the risks of subletting, consider these proactive steps:
- Include a 'no-subletting' clause: Clearly state in the tenancy agreement whether subletting is allowed. If it is, make sure the tenant must obtain your written consent beforehand.
- Conduct regular inspections: Routine inspections are an effective way to ensure that the tenant is abiding by the terms of the agreement and that no unauthorised subletting is taking place.
- Request information: If you suspect subletting, you are within your rights to ask for details on who is living at the property. It’s important to maintain open communication with tenants to avoid misunderstandings.
- Review your insurance: Ensure that your landlord insurance covers issues related to subletting. Some policies may have specific exclusions for unauthorised tenants, so it’s essential to know your coverage.
Conclusion
Subletting can be legal in Leicester, but only under specific conditions. As a landlord, the key is to protect your property by ensuring that subletting is either prohibited or carefully controlled with your consent. By keeping your tenancy agreements clear and maintaining a good relationship with tenants, you can minimise the risks and ensure that your investment remains secure.
