Recent research carried out by Direct Line for Business found that as many as one in six tenants in the UK admit that they have rented out part or all of their property to someone who is not party to the lease.
25% of tenants who sub-let their property did not check the terms of their lease to see if it was permitted, while over 33% had not told their landlord what they were doing.
The consequences when landlords catch tenants sub-letting can be severe. In some cases the tenants named in the lease can be evicted, perhaps losing their deposit in the process. Other repercussions include landlords increasing their rental charges or issuing formal warnings.
Yet in spite of this the research shows that 2016 could see an increase in the number of people sub-letting their properties. 15% of tenants claim they are thinking about sub-letting by advertising on property websites such as Airbnb.
As Nick Breton of Direct Line for Business states “There could be serious consequences for tenants who sub-let but landlords need to be aware that in these circumstances there could also be insurance implications. Sub-letting is not covered under most insurance policies, so it’s really important that landlords make their tenants fully aware of the restrictions on the lease.”
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