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'Casual' subletting of a rental flat

We're about to move and have secured a flat with a spare room - we've got the flat in our names and were planning on filling the last space once we move in. This may well be a friend we already know moving in and we are happy to organise this ourselves. (Take our own deposit, divide up the rent etc.)

However, the letting agent has a clause saying we can't sublet.

They also want £300 to change a name on the lease - which means if we were to legally add people to the lease it would cost a bomb. (Especially if they left again within the letting period).

1.) What are our chances of getting the subletting clause removed from the lease, assuming we accept all the risk of it?

2.) What are the risks of subletting without telling the letting agent?

3.) What could they do legally if we got found out? (i.e. I assume they could evict us, but can they keep the deposit)

4.) What would you do in this situation?

Comments

  • N79
    N79 Posts: 2,615 Forumite
    1.) What are our chances of getting the subletting clause removed from the lease, assuming we accept all the risk of it?
    Virtually nil - to many risks for the LL. Although there is nothing to stop you asking.
    2.) What are the risks of subletting without telling the letting agent?
    Eviction and paying your LL's costs. Paying your T's costs if they get thrown out while still under contract to you.
    3.) What could they do legally if we got found out? (i.e. I assume they could evict us, but can they keep the deposit)
    You would be liable for all the LL's costs involved plus all damage caused by the T. If this is more than the deposit then you will lost the deposit and owe the remainder to the LL. Technically you would be guilty of fraud (as you are obtaining the tenancy by deception with the intention of subletting) but in reality nothing will come of this.
    4.) What would you do in this situation?
    I would not commit fraud, nor act dishonestly but then I am not a scummy, criminal T.
  • bebewoo
    bebewoo Posts: 622 Forumite
    Wow £300 to change a name on the lease, they certainly saw you coming.

    1.) They'd probably charge you another £300, or say no.

    2.) They are unlikely to findout as long as you make sure that the other person is never there when the agent comes round for inspections, repairs etc, and you pretend their stuff is yours.

    3.) They can only keep the deposit for repairs to damage caused by you, or if you don't pay your rent. If the deposit is protected, (and it should be) then they won't be able to keep it for breaches of clauses in the lease.

    4.) It would depend on how much I trusted the friend I was subletting to.
  • N79 wrote: »
    I would not commit fraud, nor act dishonestly but then I am not a scummy, criminal T.

    I don't really consider what I was suggesting to be scummy, or criminal. Just in breach of contract. (And trying to avoid the ridiculous £300 fee to change tenants.)

    The previous two places I've stayed have run on similar arrangements but with the landlords knowledge and implicit consent. (i.e. as one person moves out, another one moves in to replace them - at contract renewal we've added the new people to the lease.)

    Okay - option 5.) We could try to haggle down the changing tenant fee... I have no problem with legally putting names on the lease, but not at the cost of £300 a go. (What would be a fair amount for this? I'd consider up to about £50 to be fair for 'admin' - though still rather high.)
  • N79
    N79 Posts: 2,615 Forumite
    bebewoo wrote: »
    3.) They can only keep the deposit for repairs to damage caused by you, or if you don't pay your rent.


    "Damage caused by you" is only correct if "you" includes damage by caused by the sublet T and all guests of the sublet T.
    bebewoo wrote: »
    If the deposit is protected, (and it should be) then they won't be able to keep it for breaches of clauses in the lease.
    While it is true that the deposit can not be kept as penalty for contract breaches the deposit can be used for the LL's costs in remedying breaches of the lease.
  • N79
    N79 Posts: 2,615 Forumite
    edited 5 August 2010 at 1:27PM
    I don't really consider what I was suggesting to be scummy, or criminal. Just in breach of contract. (And trying to avoid the ridiculous £300 fee to change tenants.)

    The previous two places I've stayed have run on similar arrangements but with the landlords knowledge and implicit consent. (i.e. as one person moves out, another one moves in to replace them - at contract renewal we've added the new people to the lease.)

    Okay - option 5.) We could try to haggle down the changing tenant fee... I have no problem with legally putting names on the lease, but not at the cost of £300 a go. (What would be a fair amount for this? I'd consider up to about £50 to be fair for 'admin' - though still rather high.)

    The difference between you subletting and the LL allowing changes of the T is that with the latter the LL has control over the referencing of the new Ts. Lack of control by the LL may cause the LL to breach their mortgage terms, or their insurance terms.

    I agree that GBP 300 is too high but that does not excuse dishonest behaviour (and despite what you may think, taking a tenancy with the deliberate intention of subletting when forbidden is technically obtaining an advantage by deception and hence is criminal, even if there will not be any comeback as covered above). But enough of the judgement - thats just my opinion.

    If being able to sublet is a key feature for you then you should look for a property and LL who are willing to allow you do this on reasonable terms.

    Personally I don't charge to change the names on leases but I would charge a standard referencing fee: GBP35 for one person, GBP50 for a couple and GBP15 for each additional T but I suppose a nominal charge of around GBP 20 could be justified.
  • tbs624
    tbs624 Posts: 10,816 Forumite
    OP - talk direct to the LL, rather than to the money grabbing LA: £300 is an extortionate figure to change the names of a tenancy agreement. The answer from the LL him/herself may still be no, in which case you have to decide whether to take the risk, and it *is* a risk.
  • We're not looking for the ability to sublet as a key feature - we just want to be able to change the names on the lease/find the final tenant without incurring a huge cost. 3 of us need to move from our current flat and found a 4 bed house we really liked - it just seemed like it should be simple to take the house and sort out the last room later. Now we are discovering that may not be the case. (We can cover the rent between us in the short-term.)

    Either way - we haven't yet signed the tenancy agreement so we can figure out what our options are. (Hence this post). Thanks for the advice so far.
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    the oher issue here - from the LL point of view - is whether or not the illegal subletting then makes the property into a House in Multiple Occupation.. which attracts all sorts of financial penalities/costs to a landlord if he found to be running an unlicensed one.....
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