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A Property Manager’s Guide To Subleasing

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Subleasing is a hot topic in today’s rental market, and you may be wondering whether it’s the right move for your multifamily property. In fact, we don’t blame you–there are a myriad of pros and cons to consider when evaluating whether or not you should allow your residents to sublet. We’ll guide you through what a sublease is, its advantages and disadvantages, and help you decide whether or not it makes sense for your property.

Subleasing Explained

So what exactly is subleasing? In short, subleasing is when a resident rents out their space to another renter during their lease. Sublets can be short or long-term, and the lease remains in your original resident’s name. This has the potential to be either great for your business or detrimental to your investments. 


1) No vacancies

This is likely the biggest advantage to allowing your residents to sublet. By allowing sublets, you’re avoiding a vacancy at your property if your resident would break their lease otherwise. This means uninterrupted income and steady cash flow for your business.

2) Residents do the heavy lifting

When your resident decides to sublet, they are agreeing to do the work of finding a subletter. This saves you serious time and resources it would require to find a replacement resident in the case of an early lease termination. It’s important to note that whoever your resident does choose, it’s still a smart idea to perform a routine background check as a safeguard.

3) Original resident remains responsible

Ultimately, should the subletter cause any issues at your property, your original resident is the one who remains responsible. This gives you peace of mind if you’re worried about a nightmare subletter damaging your property or missing rent payments.


1) Unreliable subletters

Although your original resident bears the final responsibility, you still risk dealing with the repercussions of an unreliable subletter. If the new tenant is often late making payments, makes excessive noise, or is generally an unpleasant resident, you’ll be the one to have to deal with it. Do keep in mind that a bothersome short-term resident could spoil the experience of your other residents, and those relationships are valuable.

2) Increased risk of property damage

Simply put, the more people in and out of your property, the higher the chance of damage occurring. You should be especially wary of short-term renters who have less to lose.

3) Lease violations

Subletters often skip important move-in procedures that you require of your normal residents, and this could result in unawareness of your property rules. Lease violations are a real concern–whether it’s noise, pet, or parking related–and could result in eviction.

Is It Right For Your Property?

The most important thing to consider when addressing the question of subleasing is the laws of your area. Once you’ve done this research, it’s up to you to weigh the advantages and disadvantages and create sublease terms that align with your business needs and safeguard it against potential liabilities. Keep in mind your current residents, the property, the location, and your finances to make the most informed decision possible.

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