Friday, January 31, 2014
Subleasing property can offer many financial advantages, depending on your rental situation. It can be a good and steady source of income from just parting with one unused area in your home.
Short-term subleasing is also a good way to earn extra cash while you’re away on a long trip or vacation. However, before you sublet your rented home or apartment, it’s important to take these practical steps.
Check with your landlord
Before anything else, check the original lease agreement with your landlord to see if you have permission for subleasing. Some contracts indicate whether subleasing is prohibited or restricted. In any case, you should still discuss subleasing with your landlord personally, to avoid any problems and misunderstandings. Your landlord may want to reserve the right to screen subtenants or have a say in the rent amount you charge. These are details that you need to discuss openly with your landlord.
Inform roommates or neighbors
It is good etiquette to tell your immediate neighbors about your decision to sublease your space. This way, they won’t be surprised to see new faces in their home space. If you have roommates in your home or apartment, it is also necessary to discuss the sublease with them. They may have issues with the setup or may want to take part in the screening process.
Find a good tenant
Screen your potential tenants well. While subleasing can be a great financial advantage, remember that it is also sharing your personal space with a stranger. This may expose you to some risks as well. Ask relevant questions and do a thorough background check. It’s also important to decide on how many people you are comfortable to sublease your space to. Subleasing one bedroom may not mean there will only be one occupant. Make sure this is clear in the interview process. Other points to consider are smoking habits and pets.
Make a clear sublease agreement
To avoid any problems and misunderstandings, create a clear and thorough sublease contract. State all details of the agreement, such as the rental fee, repair and maintenance costs, responsibilities of each party, and penalties for damages and other eventualities. Set clear ground rules on privacy, pets and other concerns.