Sublease Protection and Tips

[Collyn Chipera]

Hi all,

I am currently in a lease by myself for a 2br/2br apartment and have noticed the complex is leasing the same unit for $300 more a month today than what I am locked in at. I still have 10 months remaining on my lease and I do not need all of this space and am considering subletting. I have never done this before and am looking for some tips on liability protection or any other useful tips you may have for me regarding this. I looked in my lease and subletting is allowed with written consent from management. My idea is to get a sublessee to sign for a rental rate under what they are currently leasing out this unit for but more than what I am locked in at. Then, go rent a room out from a friend and in turn make a huge reduction in my living expenses. Any and all tips are appreciated.

Thanks!

[Chris Seveney]

@Collyn Chipera

1. Get management approval

2. Realize you are still responsible for the tenant and any costs or damages they do.

Is the arbitrage savings worth the risk is the question I would be asking myself. For example what if you sublease and they move out in two months - chances of recourse are slim and you would be stuck paying two rents

[Chris B.]

That's a lot of work, hassle, and risk for a up to $300 savings over 10 months.  (but more likely near zero savings)

Work: you will need to pack up and move.  You will need to collect and pay rent on time every month as well as with utilities.

Hassle: you will need to move, and find someone who will be a good tenant, and perform due diligence background checks and screening, and have them sign a good quality sub-lease lease contract with you, and trust them to not screw up with payments or destroy the unit, and you will need the consent of the owner.  To do this properly, and with presumably no prior experience, its not going to realistically happen.

Risk:  Who will you let move in?  Are you certain they will be crime free, pay rent and utilities on time, and take care of the place?  If they were this good of a tenant, they would rent from the owner directly and skip the hassle of a sublease with you.  The only incentive for them is that a) they are are a problem tenant and have a history and cant find housing elsewhere, or b) you are willing to sublease at a rent rate that is significantly cheaper than the current going rent thus incentivizing them to go through you.  

This is rental arbitrage and not worth it.  Your best bet is to stick it out for the next 10 months and then move out to your cheaper option.  I think you are better off if you have a roommate move in with you.  You can split your rent and utilities 50/50 while you still manage everything and probably be a lot better off.