Subletting an apt for additional cashflow?

Question

Hi Biggerpockets,

Can someone educate me on how subleasing a single apt works and is it a good idea to generate additional cashflow? This is my general idea of how it works but I could be totally wrong.

1. Find potential tenants for the area you want to sublease
2. Sign a lease a 12 month with the option to sublease
3. Sublease the apt to a tenant for more rent after credit/background check
4. Reacquire initial deposit and collect the difference in rent monthly

I'm from Philadelphia, PA and I'm not sure how the process totally works. I know that since I'm subleasing the property I assume the status of landlord. I am liable to collect rent on time and my original lease is still in affect. However, do I also have to act as the property manager if an issue occurs with the tenant? Do I have to take care of the maintenance? How about the taxes?

Subleasing usually works if you or one of your roommates resides in the apt but needs to move out at an earlier date then you go find a substitute. I want to know if it's possible to sublease an apt if I never intend to live there. I know I'm missing a few things here. Thank you for your help.

Phuc Hoang

Corby Goade · Answer

My lease is very clear that subletting will get you evicted. I would not be happy if I found out a tenant were subletting, making money and expecting me to maintain the property for their new roommate/cash cow. However, I live in Idaho and things could be very different in Philly. I would check your lease, and even if the lease doesn't say that you cannot sublet, you still need to call the landlord and discuss.

Carl C. · Answer

One word of caution with your idea is that many landlords will not be happy with you if they find out you are renting their apartment out for more than you are paying them. This is often written into leases that you may not do exactly what you are proposing. I know every lease I've ever signed has this as a clause. As for who is responsible for maintenance and management, I couldn't say though I would worry that you get stuck with a non paying tenant but you still owe rent to your landlord. IMO, not worth it and not enough flexibility if things go wrong.

Josse Carballo · Answer

Hello Phuc Hoang, really great question.

I too would like information on this subject, so if anyone has insight please reply.

Subletting an apt for additional cashflow?

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