A landlord’s nightmare – unauthorised subletting

By Anna Hughes, Consultant Chartered Legal Executive at Woodstock Legal Services

Unauthorised subletting is a big problem for many landlords, and Woodstock Legal Services have seen a 30% rise in subletting cases over the past couple of years.

What is subletting?

Subletting is where a named tenant under a tenancy agreement rents a room in the property or, even more concerning, the full property is sublet to an occupier or multiple occupiers.

What do I do if I discover subletting?

If only a room has been sublet without permission, it is worth talking to the tenant about the situation in the first instance. If the additional occupier is not causing any problems, then sometimes landlords may decide it is not worth the hassle and allow the occupier to remain in the property. If that is the case then it is advised to seek legal advice to ensure that this occupier does not gain any tenancy rights. Also, landlords are advised to check their mortgage and insurance terms beforehand to ensure compliance with their terms. Communication is key between landlord and tenant as there may be a good reason why the occupier cannot remain, for example the property becomes a HMO (House in Multiple Occupation) and would require a licence.

Sadly, on the more extreme end of the scale there are some unscrupulous tenants out there that sublet to multiple occupiers to make a profit. The more occupiers they squeeze in the property the higher their profit. Needless to say, the more occupiers in the property, the higher the chance of damage.

Sometimes the occupiers are not even aware the tenant is not the landlord. A simple land registry search confirming ownership can be sent to the occupiers – some occupiers are very understanding and will just move out. Others will unfortunately completely ignore all communications.

If a landlord or agent discovers that a property is being unlawfully sublet, then it is advised to consult a solicitor and act urgently to terminate the agreement. If a tenant has sub-let a property to this degree where there are multiple occupiers in there, it’s usually where the relationship has already broken down between landlord and tenant and any communications requesting the tenant to remove the occupiers falls on deaf ears.

Key points

  • Landlords/agents should conduct periodic inspections and take photographs of any evidence of subletting (for example additional mattresses in the property etc).
  • Some mortgage lenders do not allow subletting, it could be a breach of the terms of the mortgage.
  • There can be issues with overcrowding or the property can become a House in Multiple Occupation.
  • Subletting could invalidate the terms of the landlord’s insurance policy.
  • Agents should ensure that references are thorough when taking on the named tenant.
  • Speak to neighbours and see if they have noticed multiple people in and out of the property.
  • Make sure there is a clause in the tenancy agreement that prohibits subletting without consent.
  • If a tenant is subletting then consult a solicitor and seek legal advice to recover possession as soon as possible.

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