Being a landlord can be stressful. There is often so much to do, and when a tenant subleases your rental property without asking you first, it can be frustrating, leaving you with many questions on how to take action.
If you have found yourself in this situation, fear not! We have written this article to ensure that you have access to all the information you need to deal with the unauthorized subleasing of a rental unit.
What Is Subleasing?
Before we delve into advice on how to handle such an issue, we want to first make sure that you understand exactly what subleasing is and why it is a serious issue.
When you allow someone to rent your property, you typically draw up an agreement between you (the landlord) and the tenant (the person who’s leasing the unit). There are rules put in place on how the place is to be maintained for the duration of the lease term.
However, when the renter brings in a third party and leases a room or portion of the property to him or her, this is called subletting or subleasing. When this is done with the consent of the landlord, the process is known as subletting, where a sublet agreement is drawn up to detail the terms and conditions of the occupation.
On the other hand, it is called subleasing when conducted without first obtaining permission from the property owner.
A person may want to sublease a property to help them deal with unpaid rent or other financial obligations, such as credit card debt. By allowing another person to live there and collecting monthly rent from them, a tenant can help to meet their financial obligations.
What the Law Says About Subletting and Subleasing
The Residential Tenancies Act (RTA) of Ontario sets forth the obligations and rights of landlords and tenants alike in the region. Renters are given various rights under this act, one of which is a right to sublet the rental unit with the landlord’s approval.
On the other hand, subleasing the property for any period of time without authorization is regarded as a violation of the lease agreement. It can have detrimental effects on the renter as well as the subtenant.
Why Allowing an Unauthorized Occupant onto the Property Is Bad
Unlawful subleasing of a rented property presents a number of risks and difficulties for landlords. First of all, it makes it more difficult for the landlord to screen potential renters and make sure they fit the requirements to occupy the home.
In a typical case, a waiting list of potential tenants or subtenants is drawn up, and each candidate is vetted to determine their suitability.
If a thorough background and credit check isn’t done on a potential subtenant, unwelcome renters may end up living there, which might result in damage to the building or problems for the neighbourhood.
Furthermore, landlords may be held legally liable for unapproved sub-renting. Since the new tenant is not strictly bound by the provisions of the original lease agreement, the landlord might be in a tricky legal situation if the subtenant causes damage to the property or violates the conditions of the lease.
How to Deal with an Illegal Subleasing of Your Property
If you have found yourself in this situation, it is important to consider your next move carefully. Here are a few things you will need to keep in mind when handling an unauthorized sublease:
Monitor Activity on Your Property
To confirm whether there is indeed an illegal subleasing of your property, you will need to monitor the rental unit carefully. See who goes in and leaves and ask neighbours for their input to determine whether a person is living there without your permission.
Review the Rental Agreement
Make sure your rental agreements specifically forbid subleasing without the landlord’s prior written approval. Indicate in detail the repercussions of breaking this clause, such as tenancy termination and possible legal action for breaking the contract.
Communicate with Your Tenant
Encourage an open discussion with tenants and stress the value of getting consent before renting out the property to someone else. Tenants should be informed of their rights and responsibilities under the lease, with a focus on the possible repercussions of subleasing without consent.
Take Action
When taking action against the tenant, make sure you are doing so under the conditions stated in the lease agreement. Most rental contracts require the landlord to provide written notice to the offender and detail the consequences of the violation, which might include eviction.
Get Legal Advice
Before you take any steps against the tenant, make sure you speak to an experienced and knowledgeable attorney who can help you navigate the legal landscape and identify the best course of action. Keep in mind that there are certain protections for tenants, so you will need to ensure that you are complying with the law when taking action.
Need Help Managing Your Property?
Managing a rental unit can be incredibly challenging. There’s creating and enforcing the tenancy agreement, handling the payment of rent, and dealing with disputes.
Plus, when tenants disregard the law and fail to get your permission before subleasing your rental property, it can present a number of additional challenges.
The good news is that you don’t have to deal with these issues on your own. By leaving it to an experienced property manager, you can ensure that you enjoy a stress-free rental experience and that your tenant understands and follows the rules for the entire tenancy.
Maximum Property Solutions is a management company that specializes in making life easier for rental property landlords.
To learn more about our services and find out how we can help address your property management needs, get in touch with us today!
