How to Prevent Subletting Nightmares
Do a Google search for “AirBnB nightmares” and you’ll find endless examples of why you don’t want your renters hosting others in your property without your knowledge and consent. Unfortunately, in our digital age, short-term rentals are extremely easy.
Beyond the obvious risk of strangers damaging your property, you should worry about them stealing furniture, liability issues, and potential legal fees. In Miami, New York, San Diego, and many other U.S cities, short-term rentals (aka Airbnb, VRBO, and others) are prohibited.
Although the law varies regionally, fines for violations are usually high. For example, in Miami, the fines start at $20,000 and go up from there. If your home is within a common interest community or association, there may be restrictions from the declaration as well.
Prevent Subletting Through the Lease Agreement
Your lease is a legally binding document, so it is important to specify that you do not want your renters to be able to sublet without your written permission. Most standard leases will contain clauses like these:
- NO ASSIGNMENTS OR SUBLETTING: Renter shall not assign this lease or sublet the Premises or any part thereof. All persons must fill out application and be approved by Property Manager prior to tenancy. Any person(s) occupying the Premises without Property Manager approval and permission will be subject to eviction. Renter will be responsible for any damages and rents due to Property Manager that result from an unapproved occupancy.
- GUESTS OR INVITEES: In the event Renter or their guests or invitees cause any damage to the Premises, Property Manager may, at its option, repair same and Renter agrees to pay for ALL such expenses on demand or Property Manager may require Renter to repair same at Property Manager’s discretion and to Property Manager’s satisfaction. In such case, Renter is likewise responsible for all expenses. Additionally, guests are not allowed to without prior written permission from Property Manager.
Prevent subletting by having every renter sign the lease. It’s a good idea to point these out to future renters and explain that violation of these rules can be grounds for eviction.
Work with a Reputable Property Management Company
A reputable property manager will help you to avoid this situation by including appropriate language in the contract, properly vetting potential renters, requiring renter’s insurance, doing periodic evaluations, and will help with the eviction process if the contract is violated. Appropriately managing a property and preventing issues like unauthorized subletting is not something that can be put on autopilot.
Reach out to your nearest Real Property Management office to find out how we can help you more effectively care for your rental property.