Allowing Subletting Is A Bad Idea For Park City Property Management
I'm sure if you've been involved in Park City property management you are familiar with the concept of subletting. Basically subletting occurs when a primary tenant who holds a lease on a property from the landlord leases either the entire property or a portion to a secondary tenant. There are a few reasons why subletting or subleasing is a bad idea. Let's take a look at them.
Scams
I recently had a conversation with an associate of mine regarding subletting. A good friend of his lost some money in a subletting scam and it reinforced for me the decision we made to not allow this in our long term rentals in Park City. This individual, we'll call him Bob, was contemplating buying a house in Park City but wanted to first live up here for 6 months before making a significant investment. He searched around and found another guy, we'll call him Jim, who was subletting a room in a house in town. Bob paid a deposit and a portion of rent for the month before he went out of town on a trip. When Bob arrived back from his trip he contacted Jim about moving in. Jim told him that he (Jim) had been evicted from the property by the owner and was no longer living there. Jim was a little fuzzy on where the deposit and the rent went and obviously Bob was upset. Bob was never able to get in contact with Jim again and didn't know where he had lived. He contacted the sheriff's department and reported the money he had paid as stolen. Remarkably Bob was actually able to serve Jim papers for a small claims court suit via social media! Unfortunately Bob is still out his money and a place to live. Not everyone who sublets is out to scam someone but as a property owner you do not want to risk having your property encumbered by something like this. Not allowing subletting in your lease is a good idea for Park City property management.
Who Is Living There?
Another issue that can arise from subletting is a landlord not knowing who is actually living in the property. The lease with the original tenants is still in force and they are probably the ones who are paying you rent every month. But if your lease does not specifically forbid subleasing you could run into all kinds of problems. Maybe an individual with a criminal history is renting a room in your property. You would not know this because you are perhaps unaware of the sublease. As a landlord you are taking the proper steps when finding a tenant to make sure your property is well taken care of. I have written several blog posts about this subject, if you would like more information take a look at "Tenant Screening Tips For Park City Property Management." You do not want someone you have not approved taking up residency in your property. A person with a criminal record is just the tip of the iceberg. Protect yourself by not allowing subleasing.
Perform Inspections
We recently had a tenant come to us asking to get out of their lease early. I was very happy to see them go because the neighbors downstairs had often complained of noise coming from the tenants. The lease indicated there were only two people living the in property so I was surprised by the volume of complaints. When I began touring the property to prospective tenants I found out why there had been complaints. One bedroom had to beds for adults and another had three. These people were clearly in violation of the lease and I was happy to see them go.
If you would like more information on the dangers of subleasing, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
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