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Co-Tenancy or Sub-Tenancy? What is the difference?

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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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Jason Gwerder