Landlords – Sub-letting clause

Landlords – Sub-letting clause could spell trouble for landlords

Many landlords have expressed that they are apprehensive about the new sub-letting rules and worry they will be disastrous for the rental industry.

Following the Chancellor’s budget, tenant eviction company, Landlord Action, has voiced concern over Government plans which will now allow private tenants to sub-let from their tenancies by stopping landlords from using clauses in residential tenancy agreements that specifically rule out sub-letting.

This will undoubtedly raise an enormous amount of issues within the buy-to-let industry, which already has many cases going to court due to dishonest tenants to make a profit from the property they rent.

A number of landlords have already experienced problems with tenants taking out tenancy agreements, and sometimes, not even moving into the property themselves but subletting to as many people possible. This is done by putting partitions up within the property and drawing up separate agreements, giving their sub-tenants the impression that they, themselves, are the landlord. By the time the landlord becomes aware of this, often the damage from overcrowding has already been done and the original tenant is nowhere to be found.

The full details have not yet been disclosed, but many have worries that instead of fixing the housing shortage, this may have the opposite effect. With landlords possibly being exposed to sub-tenants they wouldn’t usually deal with, and by giving them even less control over their own properties by preventing them from using clauses, this could drive many landlords out of the marketplace altogether.

Landlord Action will be revealing the level of the sub-letting problem in a Channel 5 documentary which will air in a few months.

Post courtesy of Property Reporter.