The growing risk of unauthorised subletting

Subletting occurs when a tenant rents out all or part of the property they’re renting to someone else, making that person a subtenant. While subletting can be legal, it must be approved by the landlord and clearly outlined in the tenancy agreement.

However, there has been a noticeable rise in unauthorised subletting in recent years, and it’s becoming a serious concern for landlords. It can lead to unexpected financial losses, legal issues, and even damage to your property.

One of the main problems is that landlords often don’t find out about subtenants until it’s too late. Evicting someone who isn’t listed on the tenancy agreement can be both difficult and time-consuming. And, many landlord insurance policies won’t cover any damage or issues caused by an unauthorised subtenant, leaving landlords financially exposed.

Paul Shamplina, founder of Landlord Action, recently sat down with Vanessa Warwick to discuss this growing trend and expressed his concerns about subletting, referring to it as the ‘wild west’.

He expressed that property management is the most difficult thing, and that absent landlords are very common. “As a landlord myself, if I’ve got twenty-five illegal immigrants living in a two-bed flat, I want to know about it.”

He went on to say that with the introduction of the Renters’ Rights Bill and the shift to periodic tenancies, we’re likely to see fewer rent-to-rent operators in the market. While there are reputable guaranteed rent organisations like Elliot Leigh and Northwoods that manage things properly, the rent-to-rent silo businesses and those that don’t follow best practices could face significant challenges.

Our partner, Landlord Action continues to see a rise in subletting cases, particularly in London. One recent case involved a landlord in Central London who faced significant financial loss and legal complications after discovering a double subletting arrangement, with unauthorised occupants living in a property let under an Assured Shorthold Tenancy (AST). The tenant had accumulated almost £17,000 in rent arrears, prompting legal action and highlighting the growing issue of unlawful subletting in London’s highly pressured rental market.

To stay ahead of potential issues, landlords can use valuable educational tools like Title Guardian. This tool continuously monitors properties through trusted databases and online platforms, providing real-time alerts if any suspicious activity is detected. By acting quickly on these alerts, landlords can take immediate steps to protect their properties and investments.

Beyond just monitoring, these tools offer valuable insights into trends and potential threats in the rental market, empowering landlords with the knowledge needed to make informed decisions. With the right resources in place, landlords can significantly reduce their risks and ensure their properties are being used responsibly and for their intended purpose.

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