Boston is home to numerous colleges and universities including MIT, Harvard, Boston University and Boston College. The student population puts pressure on the demand of rental properties, making property management in Boston necessary. Consequently, many students turn to sites such as AirBnB or Timeshares to find tenants willing to sublet.
What is subletting?
Subletting is when a tenant who has a current lease contract decides to either rent a room in their apartment or the entire apartment to another tenant on a short-term basis.
Why tenants sublet
According to Property Investment Project website, tenants can opt to sublet their apartments if they will be away for some months. Some tenants sublet as a way of raising finances to meet rent and utility bills.
5 Keys of Subletting For Effective Property Management in Boston
- Add a Subleasing Clause to the Rental Agreement
According to Raleigh Werner, a relocation expert, in his article on JumpShell, subletting should be an official agreement. To protect themselves in subletting situations, landlords should add a clause that allows for this. To be included in the lease is the fact that renters shouldn’t sublet any part of the leased premises without prior written permission from the agent or owner. Property owners can seek help from a real estate lawyer in Boston to help them draft and add this clause.
- Let Tenants Find a New Tenant for Subletting
Remind tenants that it’s their duty to find new tenants interested in subleasing, but assist them where necessary. For example, you can charge the advertising cost to the existing tenant.
- Run a Background Check on Potential Subtenants
Once potential clients express interest in your property, screen them to determine their eligibility for being good tenants. Each landlord has his or her qualifying standards. If they meet your standards, approve them. According to Off-Campus Housing, landlords should evaluate a sublessee based on a financial assessment; not discrimination.
- Let the New Subtenants Know the Regulations
Although they’re subtenants, they will reside on your property, and it’s essential they know what’s expected of them. You may want to take them though the tenants’ regulations so they know the dos and don’ts of staying on your property.
- Get an Insurance Company that Allows Subletting
Some insurance policies don’t allow for subletting. In such cases, if the landlord allows for subletting then the property insurance becomes void. However, some companies dealing with property management in Boston offer specialized services inclusive of insurance that allows property owners to sublet. Landlords can work with such companies and benefit from subletting.
Boston Property Management
In closing, property owners should carefully weigh their options before deciding whether to permit subletting. Depending on your situation, you can use subletting to ensure no part of your property remains vacant. Our expert property managers at Mediate Management can help you determine if subletting is a viable option for you.