Subletting scams – don’t get stung

If you think that Airbnb is just a great way to find inexpensive accommodation for your next city break, think again. Airbnb and similar platforms are widely used to advertise rooms for subletting –  a nasty business that can get private landlords into a lot of trouble.

You should have a clause prohibiting subletting in your tenancy agreement because sure as eggs are eggs it won’t be you who feels the benefit. If your tenant lets rooms in your property to third parties – pocketing the rent, of course – you could end up in breach of all sorts of rules and regulations even though you had no idea that it was happening.

As an example, you’re responsible for Right to Rent checks for everyone living in your property, and that applies even if you’re unaware of their existence. Similarly, your tenant’s secret property empire – the one they’re hiding in your property – could mean the building becomes a House of Multiple Occupation and needs licensing by the council.  You’ll probably find your insurance is invalidated and you’ve contravened the terms of your buy-to-let mortgage. If you’re not worried enough by this catalogue of potential problems, imagine what will happen when you try to start eviction proceedings … It could be very messy indeed.

Subletting is increasingly common and prevalent where housing demand is at its highest. Cities, London in particular, are blighted by the practice even though it’s not technically illegal. Few tenants who sublet are doing so for the benefit of their tenants – there’s a large rogue element at work here. Unfortunately, it’s the property owner – the landlord who foots the bill for repairing damage and removing hastily erected partition walls.

Prevention is always better than a cure

Just like in life there are no guarantees, but be vigilant and do the right things before you rent your property and you’ll have some chance of avoiding the scam. Firstly, make sure you have a clause prohibiting subletting in the contract. Make sure the tenant knows about it and that they understand it. Secondly, choose thorough referencing. It’s possible the potential tenant is a serial “offender” with “form”. Watch out for people wanting to rent properties much bigger than their apparent needs and be wary of IDs that don’t look right. If someone offers you a pile of cash upfront, ask yourself why they would do that. If in doubt, don’t hand over the keys.

Once the tenancy is underway, use your eyes and ears. Carry out your inspections, listen to neighbours, check online to see if rooms are being advertised. If you suspect problems, talk to the council and get some legal advice as soon as possible.

LegalforLandlords have a free legal advice line. If you need help call us on 0800 840 7133.