They say ignorance is bliss and that’s never been so true as when your tenant’s been subletting your property on the sly.

But what do you do if such naughty behaviour does come to your attention? How are you going to handle the situation, keep rental income ticking over and stay on the right side of the law if you need to make an eviction?

Keep reading to find out what the legal implications are for you as the landlord, and what you can do to get rid of the subtenant, if that’s what you’re aiming at.

Is there really anything wrong with subletting?

In a word, yes! If your mortgage lender finds out, they could have the right to withdraw your loan. Similarly, if your insurance provider learns of the situation, you might find yourself unable to make a claim should the need ever arise.

Most mortgage and insurance providers’ contracts include clauses that forbid subletting, so your tenant could be putting you in an extremely risky position by taking rent from a lodger without your permission – even if you don’t know it’s happening.

While there are plenty of precautions you can take to minimise the risk of your tenant subletting your property click here to read them, it will still happen from time to time. So what should you do if that’s the case?

What should you do if your tenant asks for permission to sublet?

While there’s no obligation whatsoever on you to say yes (you’re not Social Services after all), it might be something you could consider. If they’re a good tenant and it would make no difference to you, why not?!

Obviously, if you did want to allow it for your tenant’s benefit, you’d need to square everything up with your mortgage lender and insurance provider first. Allowing subletting in breach of your insurance or mortgage contracts is an absolute no-no, after all.

But ultimately, there seem to be a lot more cons than pros.

For example, what would you do when your tenant leaves but the subtenant doesn’t want to?

Or if you decide to sell the property, but you’ve got no contract with the subtenant that allows you to serve an eviction notice?

There’s every chance you could end up with a messy eviction case to deal with (and to pay for). So the question is, would it really be worth it?

Hopefully you’re catching my vibe that it’s never really a good idea to allow subletting in your property. And if you agree, you’d just need to respond to your tenant’s request with a simple “sorry but no”. Wouldn’t hurt to tell them about the insurance and mortgage risks and point them in the direction of the clause in their tenancy agreement that forbids subletting too.

What do you do if you catch your tenant subletting without permission?

First things first, you need to talk to your tenant. They’re the ones who’ve put you in this awkward situation, and you should let them know how you feel.

Once they know you’ve found out what’s going on, they may well throw in the towel and move their lodger on. But if they don’t? It’s time to talk to the lodger yourself.

Fairly frequently, lodgers aren’t even aware that your tenant’s breached their contract by subletting to them. And after a friendly conversation they could willingly pack their bags and head to pastures new.

But if they’re not budging, go back to your tenant to remind them that they’re in breach of contract and that you’ll be forced to serve a Section 21 if they don’t remove the lodger themselves.

Of course, if you’re happy for the lodger to stay, there’s no reason why you shouldn’t simply draw up a new tenancy for them and get things moving forward with no risks. Just make sure you don’t accept any rent payment until new contracts have been signed.

It’s all about relationship

As with all things in property, the better your relationship with your tenant, the less likely things are to go wrong. At the start of every tenancy, make sure you always have an open, honest conversation about your expectations and let your tenants know they can come to you if they’re ever worried about keeping up with the rent.

Check in from time to time to make sure they’re getting on ok and remind them you’re there to help should they need it. The friendlier terms you’re on, the less likely your tenant is to sublet your property without your permission.

If you’d like help maintaining the relationship with your tenants, minimising the risk of subletting and resolving a situation where it’s already happening without your knowledge, please don’t hesitate to get in touch. That’s what we’re here for at Hello Owl!

Give us a call on 020 3432 3888 and we’ll get the ball rolling!