A tenant’s request to let spare room?
10:50 AM, 14th June 2018, 8 years ago
7
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Hi all, I would appreciate some advice. I have a very good tenant who at present is the sole occupant of the property.
He has recently requested our permission to advertise to let out the spare bedroom / share the rent with another person.
I think that his reasoning for the request is both to share the rental cost, but also because he would like some company. I have asked him to let me think about it.
Has anyone had this situation?
Or have any advice on it?
Timothy
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Member Since February 2016 - Comments: 977 - Articles: 1
11:05 AM, 14th June 2018, About 8 years ago
Do you have a non-subletting clause in your AST? I think this is the starting point for consideration.
Member Since June 2014 - Comments: 175 - Articles: 99
11:06 AM, 14th June 2018, About 8 years ago
Hi Timothy
You will need to note the change to your insurer – they may classify as lodger or sub let depending on who they are. Best to let them know though!
Best
Jason
Member Since September 2015 - Comments: 222
12:22 PM, 14th June 2018, About 8 years ago
If you allow sublet you have no control over the quality of the new resident. The current tenant becomes his\her landlord and will have to comply with Right to Rent, referencing etc. etc., all the hurdles we have to routinely deal with. Can you guarantee the current tenant will do it properly? I would think it would get complicated if there were a dramatic falling out and the main tenant leaves. You would be left with a resident you have no formal agreement with. Unlikely, but how often do we read of nightmare scenarios like that?
I would say no, and set up a new tenancy with two names on the AST, with a reduced rent for the extant tenant.
Gunga Din
Member Since July 2013 - Comments: 467 - Articles: 1
2:19 PM, 14th June 2018, About 8 years ago
Close out old AST and issue new one in both their names.
Only accept new tenant if they pass reference checks and can afford the rent on their own.
Send them a link on what joint and several liability mean.
Don’t rent out like you are someone on the soap “Corrie”…. “Our Kev has a spare room going. You could have that”
David Lawrenson
http://www.LettingFocus.com
Private rented sector consultancy
Member Since July 2013 - Comments: 193
5:01 PM, 14th June 2018, About 8 years ago
I think if you do go ahead, it has to be on the basis of a new AST, just for the security of the situations already mentioned. I would be inclined to say ‘yes you can do it providing the new tenant passes the same reference checks you have had to. As you will be sharing the rent and this adds a further risk to the property, I would increase the rent by £150 a month.’ Doing this would mean the current tenant still pays less than he’s paying now, but the extra risk is covered somewhat.
Member Since July 2013 - Comments: 1266 - Articles: 1
11:16 AM, 15th June 2018, About 8 years ago
I would only increase the rent if it’s in line with the market, you normally pay for the property not per person (unlike in a hotel).
Member Since August 2017 - Comments: 3
8:56 AM, 18th June 2018, About 8 years ago
Thanks everyone for the advice. The general consensus seems to be to say “Yes” to the request but to take out a new Tenancy agreement with both names on it. I usually use a local estate agent to carry out the necessary checks and to arrange for the contract to be signed etc and then I manage from then on. I suppose there will always be a risk of getting the wrong tenant and being stuck with them if my good tenant moves on, just trying to minimize that risk if possible.