New research has revealed that 17% of UK tenants have admitted to renting out all or part of their property to someone who isn’t on their lease agreement.
Direct Line for Business has revealed that 25% of tenants who sub-let their property didn’t check the terms of their lease to see if it was allowed, and over a third has not informed their landlord of their decision.
However, it’s incredibly difficult for tenants to keep this information from their landlord, and can have damning consequences. A fifth of sub-letters who didn’t inform their landlord got caught out, and 11% of those were evicted as a consequence.
Other repercussions can include increasing rental charges, issuing a fine or issuing a final warning.
Paul Shamplina, Founder of Landlord Action, commented, “Sub-letting is fast becoming one of the leading grounds for eviction, alongside rent arrears and Section 21 for possession only.”
In spite of this, the research has also unearthed that 15% of tenants are considering sub-letting part or all of their rental property.
Sub-letting is most common in the North West and the West Midlands, where more than a quarter of private tenants say that they have sub-let their properties. London and the South East also contain high number of tenants who sub-let.
Nick Breton, Head of Direct Line for Business said: “There could be some serious consequences for tenants who sub-let, but landlords need to be aware that in these circumstances there could also be insurance implications. Sub-letting is not covered under most insurance policies, so it’s really important that landlords make their tenants fully aware of the restrictions on the lease.”
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It's not a surprise having in mind the high rates of the leases in London. Airbnb is a good way to earn some money. But, when it's not allowed in your contract with the landlord, that could be a problem.
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