London is a city unlike any other. Chic, captivating, and cosmopolitan, England’s capital is a breeding ground for ambition, opportunity, and excitement. For young professionals and those who aspire to a better life, it offers the perfect place to be.
Finding property in London is another story. Tenancies are competitive, and finding the right home within your budget can prove challenging. Once you find your ideal place, you’re often very reluctant to let it go – and this is where subletting usually comes in.
Subletting is a means of renting out a property that you yourself rent. It is usually used as a method of either holding onto a property without living in it, or of renting out part of it whilst keeping the remainder for yourself. For those who are travelling, or simply struggling to cover the rent alone, it can be an ideal solution, but it does give you a lot to think about.
If you’re looking into it yourself, here are three top tips to take into consideration…
Tip #1: Confirm that You Are Allowed to Sublet Your Properly
Many people dive headfirst into subletting, and this can cause some real problems. Although subletting can seem like an ideal solution, not every tenancy agreement gives you the power to rent to other people, so you need to check the small print to see where your landlord stands. The majority of tenancy agreements will specify one way or the other, but if yours doesn’t, then the rules will be determined by the type of tenancy that you have. For a periodic tenancy, you’ll need to approach your landlord to clarify the issue. For a fixed term tenancy, your landlord’s permission won’t be strictly required, although it is good manners to speak to them anyway.
#2: Research the Monetary Impact
Although subletting usually means more money in your bank, this is not always the case. Benefits, tax credits, council tax, and income tax can all be impacted, so you’ll need to research the specific effect on each of these before doing anything. If the thought of extra cash is a part of your motivation, then subletting might not be the best way to raise it.
Tip #3: Always Have a Written Agreement
Although a written agreement is not strictly necessary in order to sublet, it’s always a good idea to have one in place. Laying out the specific rights and responsibilities of all parties is the best way to avoid any confusion or conflict down the line, and lets everybody know where they stand from day one. The government’s website has some really useful model tenancy agreements available online if you’re not sure how to go about creating one, and also provides a wealth of information on the topic.
Sublet successfully today with these three top tips.