Subletting
The term 'subletting' refers to an existing tenant who lets all, or part of, a property to another party (referred to as a subtenant).
Subletting is a complicated legal area, but typically, whether subletting is permissible or not will depend on the tenancy agreement between the existing tenant and the landlord. Even if it is permissible, the tenant may need to obtain permission from the landlord.
The subtenant will pay rent to the tenant (often termed the mesne landlord), and they in turn will pay rent to the ‘head’ landlord. The tenant may charge a higher rent than they are paying to the landlord, thereby earning a profit margin. However, subletting means that the tenant is forfeiting their right to possession as the subtenant would have use of the property (or part of it) and would only be able to enter the property (or part of it) with permission of the subtenant.
The original tenancy agreement may also set conditions for any sublet. For example, if a tenant’s contract expires it may mean that the sublet also expires.
If permission to sublet is not sought or given, but the tenant proceeds, the landlord may be entitled to take legal action such as eviction proceedings. It may also be a criminal offence if a social housing tenant sublets a property unlawfully.
In recent years, increasing numbers of landlords have pursued possession proceedings against tenants after finding that they have sublet the property through sites such as Airbnb without permission.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
This CIOB article explores the concept of value in building design and construction.
BREEAM and Measurabl announce integration to improve the financial performance of commercial real estate.
Rogers Stirk Harbour + Partners' release new images of soon-to-open 3WTC tower in New York.
A document can be called a bond or a guarantee. Does the name matter and what is the difference between them?
New briefing note is launched focusing on increasing knowledge of housing that promotes health and wellbeing.
Arbitration is a private, contractual form of dispute resolution used in the construction industry.
The European Parliament has approved a revised Energy Performance of Buildings directive.
One in six MPs supports the ring-fencing of retentions as proposed in the 'Aldous Bill'.
A stakeholder is anyone who has an interest in the process or outcome of a construction project.
BRE launches online self-assessment tool for ethical labour sourcing.
Tower refurbishment failed to meet safety standards on several counts, according to leaked report.