What is Subletting? A Guide for Tenants and Landlords (Atlanta Edition)
There are so many different types of living arrangements. From small apartments to duplexes, from living within a large family to having multiple roommates. It creates a number of variables when it comes to leases. One topic that comes up often (especially in Atlanta) is subletting. What is subletting in Atlanta, what does it mean for landlords as well as tenants, and why would some people go down that route?
As one of the premiere Atlanta property management companies available, we have seen just about every type of living arrangement and lease addendum to account for it. Subleasing is a common situation that landlords (and tenants) need to address. So let’s dive into this particular circumstance and explore all the considerations people need to have.
Table of Contents
- What is Subletting Exactly?
- Considerations for Tenants
- Considerations for Landlords
- For Landlords: Trust in BMG to Help
What is Subletting Exactly?
Subleasing means adding someone new to an existing lease. Oftentimes it entails the new person (the subletter) replacing someone who is moving out (sublessor or sublessee) but it can also happen with any new person being added to a lease (for example, a roommate). A sublease is a binding contract and so all of the same lease rules and rental laws apply to all people within that lease. In Georgia, rental leases can be verbal, but a sublease needs to be in writing.
You can think of subletting as “sub-leasing.” When a tenant rents out a portion of the rental property to another party — that’s considered a sublet. If the tenant decides – and gets permission – to have someone new take over the rental lease, it can also be considered a sublease. To ask the question what is subletting in Atlanta means getting into the various situations a tenant would want to go down that path. It also can create various issues if not done in ideal situations. If the original tenant is still on the lease, they will still be responsible for paying the rent even if the subletter pays the rent in exchange for staying in the space. While the arrangement may work out, there are plenty of times then it causes friction.
Considerations for Tenants
Subletting can be risky. It comes with many of the same risks as taking on a roommate. If a tenant’s subletter disappears or causes damage to the rental unit, you as the tenant are still liable and could get stuck with the responsibility. If you are the new person moving in, it can feel just like a regular rental… only it may feel like you have two landlords rather than just one. Maybe that is a recipe for disaster. While subletting in Atlanta may be needed because of all kinds of situations, in Georgia and elsewhere it is important to note that there are often other – neater – options for these various scenarios.
If you do think you are interested in subletting, make sure you check your lease for rules about subletting – sometimes called an “assignment”. You often need permission from your landlord to make any change to a lease (subletting constitutes as a change). If you have a month-to-month lease or are a tenant-at-will, you are not allowed to sublease without your landlord’s permission. However, even if you’re allowed to sublease without notifying your landlord, it is a bad idea to sublease and move someone in without the landlord’s knowledge. The landlord may not respect that person’s rights the way they should any tenant if they don’t know they are a tenant there.
You always need permission from other tenants to add someone to a lease. Remember, a lease is a contract. You cannot change the essential terms of a contract if the other parties do not agree to them. This means adding people to a lease. While you may want to do things informally, you are setting yourself up for problems if you do not treat a lease like a contract that needs to be formally discussed and agreed upon by all involved.
Considerations for Landlords
Some landlords view subletting as something that maybe isn’t ideal but necessary in some circumstances. It is better than losing a tenant altogether. As a landlord, look a little more carefully at how to best build your lease terms in cases of subletting. You might create a better lease in the long term that deals with subletting head-on.
We could go so far as to say that every lease should address subletting. The terms of subletting should be spelled out in every rental lease, even if as a landlord you are prohibiting it. With a well-tailored paragraph or two, you can create a subletting policy that fits your business needs while making things clear to all future renters.
One thing to consider: include a fee. It’s a good idea to include a clause that charges the tenant a fee for subletting since it often comes with additional costs such as more tenant screening and background checks. Requiring that the subletter undergo the same vetting process as the original tenant means that you will be able to scrutinize the new tenant. And that is the right of landlords.
You can also require that the subletter get their own renter’s policy. If the original tenant moves out, they likely will cancel their renter’s policy, ultimately leaving your rental space at risk. You can add a clause to the lease that requires the subletter to purchase their own renter’s insurance policy.
For Landlords: Trust in BMG to Help
As landlords or property owners, allowing tenants to sublease your rental property has some benefits. We understand why it remains an option for many. At the same time, it is still a significant decision for landlords to make and does come with risks. Subletting in Atlanta, Georgia can increase your profits and improve vacancy rates, but it can also pose liability and compliance risks for landlords. Why not call the experts? Bay Property Management Group can help protect your rental.
If you are looking to further protect your property management in Atlanta, Boston, Baltimore, Philadelphia, Northern Virginia, or other areas, contact us today.
