When applying for rental properties, tenants have two options for the lease agreement: Co-Tenancy or Sub-Tenancy.
Tenants who wish to sub-lease must have written permission from the landlord.
As a landlord, you have the right to issue a tenant who is sub-leasing without your consent, 14 days notice to vacate.
Landlords must present a valid reason for refusing to allow a tenant to sub-lease and a tenant has the right to take the matter up with the relevant authority, if they wish to pursue the matter.
The Advantages of Co-Tenancy for Landlords:
- The tenant shares the responsibility of the management with one or more people
- It is easy to transfer the tenancy from one person to the next
- If there are enough co-tenants to satisfy the rent, there is more chance of securing a property’s lease
The Sub-Tenancy disadvantages for Head Tenants
- A head tenant takes on the legal responsibilities of the landlord and will have to personally deal with any disputes.
- A head tenant has to vet all potential tenants and will therefore have to deal with the consequences of a poor assessment
- If a sub-tenant leaves without paying, the head tenant is responsible to recovering the outstanding monies
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