Is subletting the biggest issue in lettings today?

Time to think again if you assumed subletting was a social housing problem.  The private rental sector is far from immune to unscrupulous or misguided tenants, with subletting fast turning into a silent industry epidemic.

There is a shortage of affordable rental property, especially in cities where recent graduates, young professionals and migrant workers are searching for accommodation on meagre budgets. Until the Build to Rent programme delivers a deluge of rental properties, many tenants are competing to pay the lowest monthly rent. The situation is clear: a house will be more expensive to rent than a flat; a flat will be more expensive to rent than a room; a room will be more expensive to rent than occupying a friend’s sofa.

And that’s where the problem lies. There is a keen and growing audience looking for cheap let accommodation. There is also a growing band of tenants who can see potential in the property they already let. Driven by economics on both sides, sub-letting needs no fuel adding to its fire. A tenant struggling to pay the rent may let a room in the property to cover the bills. A renter on a budget would find it hard to refuse a cheap room in a decent house. It’s easy to advertise on Gumtree or Facebook for an additional occupant or two – and who’s checking?

Subletting is illegal and very damaging. When a tenancy agreement is signed, only those mentioned in the paperwork are legally allowed to inhabit the property. Even a boyfriend moving his girlfriend in without the landlord’s permission will break the tenancy agreement and potentially invalidate any home insurance. More people under one roof will create more wear and tear, more potential for damage and more mould-inducing condensation, presenting the landlord with increased maintenance issues. And what if a brought-in secondary tenant is unhappy with the ‘makeshift’ landlord – i.e. the original tenant? Who do they complain to? Is it unthinkable that your registered tenant might even have taken a deposit from the sub-let renter? Tenants can play letting agents at their own game and it has the potential to get messy in a poacher turned gamekeeper scenario.

If you’ve dropped the ball when it comes to mid-term inspections, now might be the time to schedule some property visits. Tell tale subletting signs include more toothbrushes in the bathroom than the number of tenants specified on the agreement; evidence of sleeping in the living room and increased utility bills for landlords who have provided an ‘all-inclusive’ rental package. Subletting is costing landlords thousands of pounds: don’t let it cost you your client.

* Dave Hunt is the Business Development Director of the ARPM Group, which provides national outsourced lettings and property management services.

ARPM

Simon Duce is the Founder and Managing Director of ARPM Outsourced Lettings Support - a business designed to help small and start-up letting agents/property managers offer a full suite of property management and tenancy administration services through outsourcing.

You May Also Enjoy

Breaking News

Popping the Asking Price Bubble

Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price   New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More
Rightmove logo
Breaking News

Highest demand to lease office space since pre-pandemic

The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More
Planning disputes on new build land
Estate Agent Talk

Planning consultations for major infrastructure to be streamlined

Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More
Breaking News

‘The property ladder pulls further away’ warns Open Property Group

For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More
Estate Agent Talk

How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase

Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More
Love or Hate Rightmove
Breaking News

Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings

Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More