Do you charge a sublet fee?

Question

I have university tenants that want to sublet for the summer (two months). I'm open to the idea but really have nothing to gain but lots of headaches. How have you approached this. There is additional wear and tear on the apartment and new people I don't know renting the unit meanwhile my tenants are off on vacation somewhere. I'd be more agreeable if I could raise the rent during this period to coincide with my increased risk.

What works for you?

Bill S. · Answer

@Shawn M. my state law requires that I allow subletting. I charge $250 to process a new applicant plus their screening fee. I tell the main tenants, you are 100% responsible for this tenant, if they trash the place, cause problems, etc, it's on you. My lease remains in place with the original tenant and I do an addendum that lists the sublet tenants as occupants. My rent is collected from the original tenants. It's their job to get paid by the sublet. This is how a real sublet works legally. If they don't want the risk of the sublets then they will pay and leave it empty. If they have people they trust then it's save them some money.

I have to do it. I don't like it but in the one or two times tenants have gone that route the sublets were excellent (just like the original tenants).

Jasmine Bennett · Answer

I agree with Rick. Most leases that I have seen/worked with forbid subletting to avoid the headaches you are about to encounter. First and foremost you will have complete strangers living in your home. These subletters have not been properly screened and the increased risk of having college aged subletters is substantial. Whose to say these people won't make off with the appliances while your current tenants are away on vacation? If you have already agreed to the idea and cannot back out now I would suggest two things: 1. Request an additional security deposit for the duration of sublet. I would suggest one month's rent but the amount can be of your choosing. This protects you in the event that the subletters are less than wonderful and cause damage to the unit. Your current renters can decided figure out where this amount will come from. I believe this is your best bet. Your other option would be to raise the rent. You may want to check local laws however as this may not be an option if a binding lease is in place.

Good luck!

Jasmine

Good luck!

Jasmine

Kimberly T. · Answer

I'm generally not a fan of anyone who would be so transient that they would want to just rent a place for a couple of months, so just on its face, I wouldn't allow subletting to someone who claimed they'd just want to stay there for the summer.  I honestly see no upside in allowing subletting, all the time you'd spend dealing with screening new short-term tenants, dealing with claims of who did what damage (how would you assess costs for damage when you eventually do get the unit back?), etc., is just not worth the extra few hundred bucks you might get.

Shawn M. · Answer

@Jasmine Bennett Rick C. I agree with your posts, there is nothing in it for me.

I guess I am trying to figure out a way to create an upside for me, either by a sublet application fee or increased rent.

If I say no subleting is allowed the tenant is out $1600/mo rent for the summer. So even if I charge a $500 sublet fee, they would only be out $1100 the first month.

What do you think would be reasonable?

Shawn M. · Answer

@Bill S. Thanks Bill. I think I will go that route, The tenants are students in a Yale phd program, super responsible, and the sublettee? would be as well, so i'm not concerned with trashing the apt, I just want to get reimburesed for my extra time.

Andy Luick · Answer

My leases forbid it but in the few cases where I've done it, I keep the main tenant personally liable for damages or lost rents for the unit...and then I sign a short term sublet agreement with all parties this time holding the sublet tenant liable for lost rent or damages if they hold over.  With shared housing, it doesn't come up as often and you'll see more of this with students who are gone for summer or winter breaks.  More often, I will let my original tenant out with a 1-month penalty and sign a new lease with the new renter.....

Elizabeth Colegrove · Answer

I agree with @Bill S.  if you want to go the subletting form. I would charge a $500 fee and  add them as an "occupant" with the requirement of the tenant being 100% respsonible for all damage, etc. This way you get both sides. Just a thought.

Rick C. · Answer

If you want to help them, why not offer to just let them let them send person to you to apply and be approved by you.  If the person passes your screening you could terminate their lease and write a new lease at whatever term you need with the new person.  This way would you could do inspections in between and minimize headaches.

Don't be surprised if the summer student doesn't want to move out in the fall though.....that would be the chance your current tenants would be taking vs letting them secure your place at no cost at your risk.

Aaron Junck · Answer

How are you going to handle it if the tenants come back from summer vacation and the place is trashed and they say "we are going to stay here its trashed"?

Sounds like the cons outweigh the pros here

Kimberly T. · Answer

I'm with @Rick Crabtree , we don't allow subletting at all.  There is no upside.  If your tenants didn't want to pay rent for the summer, they should not have signed a rental agreement.

Do you charge a sublet fee?

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