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0:10 AM, 26th July 2023, About 9 months ago 7
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A worrying trend among tenants who have been secretly subletting their landlords’ properties has been revealed.
The study from Direct Line business insurance delved into the practices of renters across the country and found that a staggering 48% of subletting tenants had failed to disclose this arrangement to their landlords.
Even more alarming was the fact that a whopping 77% of respondents had not bothered to review their tenancy agreement before engaging in subletting, potentially exposing themselves to serious consequences.
The findings shed light on a growing issue that impacts both landlords and tenants alike.
Direct Line’s landlord product manager, Sarah Casey, said: “With the market having seen an increase in average rents in the last year, it is hardly surprising that a larger number of renters are tempted to offset this expense by subletting their property.
“Landlords and tenants need to be aware that sub-letting has serious insurance implications.”
She added: “Subletting is not covered under most landlord insurance policies, so it’s really important that landlords make tenants fully aware of the restrictions on the lease and maintain that communication to help prevent any breaches.”
The study also reveals that 13% of renters have been renting out parts of their home, ranging from single rooms to the entire property.
The rate of subletting was even higher among younger tenants, with 25% of those aged 18 to 34 admitting to such practices.
Unsurprisingly, the repercussions of these secret subletting arrangements were severe, with 23% of landlords eventually discovering the unauthorised sublets.
Tenants faced harsh consequences, including evictions, non-renewal of their tenancy or receiving negative references for future rent home applications.
Ms Casey said: “Tenants also need to be aware that their contents insurance is very unlikely to cover any theft or damage to personal property in the event of subletting.
“It’s important that landlords perform regular checks on their rental property to ensure that only those listed on the tenancy agreement live in at the address.
“Should they become aware of any changes, it’s important that they deal with the situation swiftly and notify their insurer to make sure they have the appropriate landlord insurance in place.”
Despite the risks involved, a surprising number of respondents said they would still consider, or have already, signed up to Airbnb or similar services in the coming year to rent out parts, or all, of their rented homes.
The survey found that 22% of respondents expressed an interest in doing so, with younger renters being more open to the idea – 46% of them said they would consider it and a shocking 40% are already signed up to the platforms.
However, just 6% were using the platforms.
For landlords in London, 50% of tenants said they were open to using Airbnb, 45% said they would consider it and 5% were already subletting their home.
Direct Line says the growing trend of subletting may be a direct result of the UK’s buoyant rental market – no doubt helped by news from Rightmove recently that rents outside of London have hit a record £1,190. London tenants are now shelling out more than £2,500 on average.
JeggNegg
10:12 AM, 26th July 2023, About 9 months ago
a small 2 bed flat i manage on behalf of my family is about to become vacant. i started the re-letting process and advertised on line at 13.00 and within 2 hours i had 2 appointments for that same day at 17.00 and 19.00. the 2nd viewing made offer which was accepted.
the following day i had a couple who asked to view 5 days later, i contacted them and told them an acceptable offer had been received, and there was no point in making a viewing. but the Scarry part of this process was, 2 days later this couple offered £410pmth. over my asking price WITHOUT a VIEWING!! i declined the offer and within 24 hours i received a further offer of £810 p mth. over the asking price., nearly 60% over. there are cheaper flats available in my area and i immediately thought this offer was likely to be earmarked for sub letting or possibly something worse. i have been an agent for family over 25 years, and only had 1 tenant who got into arrears 20 years ago. i agreed a repayment plan over 2 years and he is still a tenant. possibly my best tenant. PLEASE BE CAREFUL when considering accepting financially attractive rental offers, as there MIGHT be a downside!! If its too good to be true,---BEWARE
Dennis Forrest
10:17 AM, 26th July 2023, About 9 months ago
A bit controversial this comment. But in the case of an unfurnished property where the tenant provides all the furniture it might make sense for the landlord to turn a blind eye to a few nights per month on Airbnb. This might make the difference between the tenant being able to afford the rent each month or the tenant getting in to arrears.
Jonathan Sandford
11:56 AM, 26th July 2023, About 9 months ago
No surprise here to be honest. I had a flat miles away from where I live and was totally reliant on the (corrupt) agent to manage the flat over the past 5 year's for me, sending 6monthly 'updates' to me. Turns out the tenant (I greed to let to) never moved in and the past 5 years she has been subletting the flat (2 bed, 2 bath, kitchen diner) to 6 adults (the dining area was divided by a floor to ceiling curtain and a double sofa bed installed!!! She had been charging them all a monthly fee (of course in cash) and was making £1,200 pcm AFTER paying my rental amount. Begs belief!
I only found out when the (corrupt) agent, who was in on it with her went into receivership and the new company contacted me and told me what was going on. They also said it was so prevalent currently.
GLee
6:52 AM, 28th July 2023, About 9 months ago
Article says landlords should carry out regular checks to ensure this practice is not happening. But how? You need 24 hr notice for inspections, during which time any evidence is temporarily cleared. Even if you see more people in the property, tenants can claim they are friends visiting etc. Could landlords be accused of breaching HMO regulations, letting overcrowded properties, subject to Rent Repayment Orders, etc, when the Tenancy Agreement clearly states the maximum number of residents, which is disregarded by the tenants, and which cannot be enforced?
Chris @ Possession Friend
14:02 PM, 28th July 2023, About 9 months ago
Reply to the comment left by GLee at 28/07/2023 - 06:52
Its always a good idea to have a line of communication with neighbours at your rental property. They can tell you ' all sorts of things ' !
GLee
14:48 PM, 28th July 2023, About 9 months ago
Reply to the comment left by Chris @ Possession Friend at 28/07/2023 - 14:02
The neighbour hates my tenants! Always contacting me about any little noise here, bin misplaced there, telling me that I should sell up. What weight does their evidence carry in Court?
Stella
15:25 PM, 30th July 2023, About 9 months ago
Reply to the comment left by Chris @ Possession Friend at 28/07/2023 - 14:02
Yes I agree having a line of communication with a good neighbour could be useful.
However having recently completed a refurb on one of my properties I saw just how interfering they can be.
The builders complained about him several times,
He took photographs of them repairing the roof, monitored their activities and complained if they were late leaving the property even though they were not making any noise.
Now that he has my contact details I look forward to hearing from him several time in the future.