Investor · Baltimore, MD · Member since 2015 · 18 posts · 5 votes
Some great tenants just told me that the offer they made on a house has been accepted. They've given me more than 60 days notice and offered to find subletters or new tenants to move in on April 1, so there would be no vacancy. Their lease allows subleasing with the landlord's prior written consent. Is it better to let them sublet or allow them to break their lease after they find a new tenant? Either way, I would run a credit and background check on the subletter or new tenant. One of my concerns is that I'm in the process of refinancing the property and sent the lender their 12-month lease. Hopefully, the loan will close long before April 1, so this might not be an issue. Thanks in advance for any input.
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
9y
Subletting = NO control
You finding the tenants = ALL the control
Personally NO way would I allow anyone sublet. If a tenant wants to break the lease, they are welcome. I require 60 days notice and provide a 2 month break lease fee. I am in an area that is much cheaper to buy than rent, so this happens often. This way when people do break the lease, I am paid for my time
Investor · Monroe, WI · Member since 2015 · 691 posts · 610 votes
9y
Do not sublet, every landlord I know does not allow it. It will turn into a nightmare when they destroy your unit. Just find new tenants that you screen yourself.
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Lisa Montana I would use their referral(s) as leads and follow up with the potential sub-letter the same way you would with a new tenant. so the same checks apply. I would not get into a subletting agreement with the current tenant as it can be messy depending on your local landlord/tenant laws. I would or have my property manager begin marketing the unit/property ASAP to find the best renter for the unit.
Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
9y
Subletting = NO control
You finding the tenants = ALL the control
Personally NO way would I allow anyone sublet. If a tenant wants to break the lease, they are welcome. I require 60 days notice and provide a 2 month break lease fee. I am in an area that is much cheaper to buy than rent, so this happens often. This way when people do break the lease, I am paid for my time
Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
9y
Do you have a lease termination clause in your lease? That would be a good choice.
If not, I believe these tenants should make the EFFORT to find tenants to replace themselves since they are the ones who wish to break their lease. This does NOT mean you have to automatically accept who they find; these folks would still need to go through your screening process.
I have had tenants who have purchased houses and wanted to break their lease (this was before I added in a lease termination fee in my current lease). We BOTH began advertising for replacement tenants and I gave them applications to hand out if they found someone they felt might be suitable to replace themselves.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
9y
As others have said before, do not give up control of your screening process. The outgoing tenants do not have any interest in making sure their replacement will be a good tenant for you.
With that being said, DO enlist the outgoing tenant's help for referrals. Good tenants are often friends with other good tenants. But screen whomever they send your way the same as you would anyone else.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
9y
If they are good tenants take their leads before you start the re-leasing process but screen as you normally would. Referrals can be a good way to save time. However , even well paying tenants who have low standards for upkeep I just tell them have your referral call me when I put the sign up.
A new lease is better then a sublet. I only had one tenant who I gave permission to sublet (furnished )so she could come back to her apartment after the summer and she decided not to. That is the only situation where I would consider a sublet is if the tenant is coming back. There would be no reason to sublet for you over re-leasing.
Investor · Baltimore, MD · Member since 2015 · 18 posts · 5 votes
9y
Thanks, everyone, for the great advice! I'm definitely going to screen new tenants. My lease does not include an early termination fee per se, but it probably allows me to keep the security deposit if the tenants break the lease. These tenants have taken exceptionally good care of the apartment, so I doubt I'd have to withhold much from the security deposit if they were simply moving out at the end of the lease.