Should I let my tenant sublet?

Question

I have tenant who signed a lease in August. He got a good deal-- $150 under what the same apartment rents for in the rest of the property (it's a quad). I did this to avoid vacancy. But he never moved in. A few things are there-- a partially unboxed sofa, some cleaning supplies, a towel-- but there is no evidence of him every staying there overnight.

This morning he texted me saying he has a new opportunity in Boston and asking if I'd be open to him subleasing it. I don't like the idea of putting the choice of tenant in his hands (without a background check and my vetting). I also don't like the idea of trying to find a tenant myself in December/January.

What should I do? Should I find a tenant myself on the condition that he continues to pay the rent until the person is placed? (In which case, could this be a good opportunity to raise the rent?)

Should I say sorry, your sh*t out of luck, you need to carry the lease to term?

Are there other options I'm not considering?

Thanks so much for your help.

- Emily P.S. There's a clause in the lease that imparts a $1000 penalty for breaking the lease but clearly he's not aware of it.

JD Martin · Answer

No. Either he pays the early termination and you guys go your separate ways, or he pays the rent while you look for a new tenant and then he goes on.

Theresa Harris · Answer

What does your lease say about him breaking it?  If there is a $ penalty, have him pay it and give notice. If not, tell him you need X days' notice (whatever the lease says or the local laws) and you will do your best to find a new tenant. Once you do, he's off the hook for rent.

Emily B. · Answer

The process is ongoing. I've been marketing the apartment and vetting people who want to come see it. When there is a person with real interest who meets my qualifications (3x income to rent and 650+ credit score), I connect them to the tenant who then shows the unit. The tenant will continue to pay rent until the unit is filled. He will also have to pay a penalty of one months rent as per the lease. I had originally reduced the rent to $150 under market rate in order to avoid a vacancy and get it filled quickly this August (which worked). When I posted the advertisement this time, I raised it back to a bit under market rent. I have a pretty strong candidate who wants to get in Jan 1, so this may well be resolved soon. I appreciate everyone's advice.

Brandon Spurlock · Answer

@Emily B. what did you end up doing in this situation?

James Mc Ree · Answer

Tell him he needs to pay on the lease he has with you. You will let him out of it when you accept a new tenant. He can refer prospects to you according to your screening criteria and you will vet them like any other prospect. If you accept someone he refers, then he gets his security deposit back. (or something like that)

You might get nothing except his security deposit. This way, you still have his security deposit which becomes a carrot for him and maybe you get a lease payment or two for what would otherwise be vacancy.

Should I let my tenant sublet?

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