How to Prevent Tenants Secretly Subletting

Despite subletting being reasonably common, many landlords unwittingly allow it, believing it won't happen in their properties because it hasn't happened in the past. But its a risk you shouldn't take. Be confident your tenants aren't subletting, and know what course of action you should take once you realise your tenants are without your permission.

Why is Subletting a Concern?

  • Some insurance policies don’t allow for subletting, making your policy void when you do go to make an insurance claim – a worrying issue if any damage does occur in your investment property.

  • There is the risk that the subletting tenants may not take good care of your investment because they aren't on the lease and so have no liability – plus, keep in mind you didn’t hand pick them, get a chance to check their references or conduct credit checks, so how can you be sure they’re reliable?

  • If the occupant who is subletting causes damage, you must pursue the original tenant for any re-compensation, which can prove difficult if they’re no longer contactable.

How We Prevent Subletting?

  • We put a clause in the tenancy agreement forbidding subletting. During the signing we discuss this clause with the tenants so there is no misunderstanding.

  • Our team carries out quarterly property inspections every 3 months to ensure all is as it should be at the property. We find our regular inspections show tenants a close interest is taken on the property, and so discourages tenants from doing anything not allowed in the tenancy.

  • We keep an eye on listing websites like Vic Deals, Airbnb and other platforms; contacting the tenant immediately if the property is found listed.

What If I’m Okay With My Tenant Subletting?

Subletting can be beneficial to the landlord if the tenant needs help paying their rent on time or wants to get out of a fixed term tenancy without causing a huge issue. However, it’s important to remember that even if the tenant sublets and moves out of the property, the original tenant, not the person subletting, is responsible to the landlord.

If this is this case, best practice is to protect everyone’s rights and responsibilities by asking the new occupant to sign a written tenancy agreement so they become the new tenant. This should be done only if you are prepared to end the agreement with the original tenant.

Final Thoughts

For the most part, subletting can have detrimental consequences for the landlord, so it's best to prevent it. We strongly recommend you ensure your rights are covered and you continue carrying out regular property inspections every 3 months to ensure your property is being well looked after and the tenants are abiding by the agreement. Our Wellington Property Managers make sure none of the properties we manage are sublet.

Interested to hear how we can help you and your investment? Find out how our Wellington Property managers can help you. We manage property in the Wellington and Hutt Valley regions. Feel confident your property and tenants are looked after by our professional Property managers with our property management services .

Discover how our Care & Return System will benefit you. Receive a no-obligation, FREE rental appraisal today for your Wellington investment property!

Call Jordan Atkinson - 027 297 0873

Quinovic Kent Terrace | Wellington

Call Allan Hartley - 027 522 9084

Quinovic Johnsonville | Wellington

Call Helen Vance - 027 487 8103

Quinovic Hutt Valley | Wellington

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Quinovic Kent Terrace Wellington

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