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How to Prevent Subletting Nightmares

Small white house with black roof and well-maintained yardConduct a short Google search for “AirBnB nightmares” and you will quickly see the endless examples of why you don’t want your renters hosting AirBnB renters in your property without your knowledge and consent. Unfortunately, in our increasingly digital age, short-term rentals are very easy.

Besides just the obvious risk of strangers damaging your property, another concern might be about stolen furniture liability issues and potential legal fees. In Miami, New York, San Diego, and many other U.S cities, short-term rentals (aka Airbnb, VRBO, and others) are not allowed. While the law varies regionally, fines for violations are usually very high. For example, in Miami, the fines start at $20,000 and only continue to grow from there. If your home is within a common interest community or association, there may be restrictions from the declaration as well.

Prevent Subletting Through the Lease Agreement

The lease that you sign with your residents is a legally binding document, so it is important to specify that you do not want your renters to be able to sublet without your explicit permission. Most standard leases will contain clauses like these:

NO ASSIGNMENTS OR SUBLETTING:
Resident shall not assign this lease or sublet the Premises or any part thereof. All persons must fill out an application and be approved by Property Manager prior to tenancy. Any person(s) occupying the Premises without Property Manager approval and permission will be subject to eviction. The resident is responsible for any damages and rents due to property manager that result from an unapproved occupancy.

GUESTS OR INVITEES:
In the event Resident or their guests or invitees cause any damage to the Premises, Property Manager may, at its option, repair same and Resident agrees to pay for ALL such expenses on demand or Property Manager may require Renter to repair same at Property Manager’s discretion and to Property Manager’s satisfaction. In such case, Resident is likewise responsible for all expenses. Additionally, guests are not allowed without prior written permission from Property Manager.

Be forward thinking and prevent subletting by having every renter sign a lease with clauses like these taking special care to point them out and explain that violation of these rules can be grounds for eviction.

Work with a Reputable Property Management Company

A reputable property manager will help you to avoid this situation by including appropriate language in the contract, properly vetting future tenants, requiring renter’s insurance, doing periodic assessments, and will help with the eviction process if the contract is violated. Appropriately managing a property and preventing issues like unauthorized subletting is not something that can be put on autopilot.

If you are interested in having your property managed by Real Property Management Metro Detroit, have more questions, or just want to speak to one of our team members, then contact us online or call us directly at 248-808-6550 today!

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