Sub-letting: what are the dangers? How can you spot it?
Chris Hogan , 6th September 2018, Landlords
No landlord wants their tenants to sub-let, at least not without their full knowledge and agreement. But the dangers of unauthorised sub-letting took a new twist with the introduction of the Right to Rent rules, in England.
The Residential Landlords Association (RLA) researched the effect Airbnb and other 'sharing economy' sites were having over two years ago. But even then, 15% of landlords surveyed said that they had found their tenants sub-letting without permission, nearly half of the properties concerned being in London.
There is also a problem with con-artists renting large properties then splitting the property up into bedsits to rent out. Not only are the property owners left in a tricky legal situation but they can be looking at thousands of pounds' worth of remedial work to do. Often the scammers abscond without paying any rent, apart from the first few months, pocketing all the rent and deposits they have received from their tenants.
How can you spot sub-letting?
In the RLA's survey a third of the landlords who have discovered sub-letting did so when they went to the property. A further 23% were alerted when neighbours complained and 18% found out by checking online.
That's a clear indication that you should make regular inspection visits, probably monthly. Note that you must give tenants 24 hours notice beforehand unless it's to go in and fix an urgent problem.
If there's someone who's not on the tenancy agreement living there, 24 hours will not be enough notice to get rid of all the tell-tale signs. Look for things like extra rubbish inside and out, extra clothing or bedding lying around, suitcases or bags in bedrooms, more toothbrushes than occupants, that sort of thing.
Online detective work
Checking online is clearly worth doing too.
Look at Airbnb, Spareroom, Gumtree and other online sites where you're more likely to find rooms being offered. Property portals like Zoopla, Rightmove and local letting agents and estate agents websites are worth checking if you suspect the property might be sub-let as a whole.
What are the dangers of sub-letting?
Generally if tenants sublet without your permission then they obviously don't have much respect for you or the property. With an unknown number of people in the house, damage is more likely and you'll have to pay to put it right. More noise and disruption may be generated, which could cause problems with neighbours.
There are some specific problems too. Your insurance company may refuse a claim if they discover unofficial tenants and your mortgage conditions might be breached too.
Right to Rent
But if you're in England, the new Right to Rent rules, introduced in 2016, add an extra danger.
It's now a landlords responsibility to check that no adult tenants are illegal immigrants. If your tenant sublets without your consent and don't carry out the relevant checks (and let's face it, they are hardly likely to) then you are liable for the fines.
As the fines can be up to £3,000, that's no laughing matter.
