Multifamily data helps landlords make key decisions about their properties. For instance, should you allow your tenants to sublease your property? What are the potential drawbacks of subleases? In addition, how can you protect yourself and your property when tenants sublease? There is no “right” answer for every property, so it’s important to understand your options and weigh the pros and cons. In this article, we’ll discuss some of these, as well as multifamily data research that may help you make a decision.
What is Subleasing?
Subleasing, also known as subletting, is basically where you rent your property to your tenant and that tenant rents it to another person (the subtenant). Generally, tenants may choose to sublet their space to avoid breaking their lease early. In some cases, tenants may sublease to help pay the rent while they’re temporarily living elsewhere. Subleasing typically falls into one of two types: short-term and permanent.
Short-term subleasing involves temporary stays where the tenant plans to return. For instance, if your original tenant plans to travel for a few months, they might want to sublease to help pay rent while they’re out of town. Short-term subleasing can also take the form of vacation rentals through popular sites like Airbnb and VRBO. Essentially, if the tenant is planning to come back at the end of the sublease, this is considered short-term subleasing.
Permanent subleases generally mean that the tenant has moved out. Typically the subtenant will live there for the remainder of the original lease agreement. These arrangements are common when tenants decide to move elsewhere and don’t wish to go to the expense of breaking their lease early.
Pros and Cons of Allowing Subleasing According to Multifamily Data
For landlords and property management companies, there are several advantages and disadvantages to allowing subleasing. Of course, in some cases local and state laws dictate whether subletting is allowed and under what restrictions. In other cases, it’s completely up to the landlord. No matter whether you choose to allow subleasing or not, it’s important to make sure you’re acting within the law. Also, make sure everyone is on the same page by putting the particulars in lease agreements.
There are several benefits to allowing subleasing arrangements according to multifamily data. For instance, subleases allow for fewer vacancies. They also help save time and energy on finding new tenants, as the original tenant typically sources the subtenant for you.
However, there are some downsides as well. One of the main drawbacks is less control over subtenant selection. For example, will they go through your normal screening processes? While you can often add stipulations in the lease agreement for subleases like the ability to screen potential subtenants, to some extent your tenant becomes the middleman in subletting arrangements. Also, evictions are hard enough with one tenant, let alone with subtenants. Therefore, it’s important to consider carefully whether you will allow subleasing for your property.
Apartment Data Services – Your Resource for Quality Data & Reporting
Accurate, up-to-date data is a huge competitive advantage for your property, so make sure you get superior data and multifamily market reports from our team at Apartment Data Services. We help provide local competitor data for landlords and property managers and offer leasing agent data to help agents find properties for their clients. Get in touch to learn more about our services and request a free demo! Call us now at (800) 595-8730.