Combatting Potential Subletting Problems
We all realise that being a landlord is a tricky business. There’s the initial purchase and further portfolio additions to get right from a location, property type and financing perspective. Then there’s the small matter of successfully managing and maintaining these properties.
As the market evolves, whilst generating more opportunities for landlords, it also creates additional challenges. The growth of the short-term lettings market is a good example of this. Technology has opened the doors to more business and strong yields for landlords. However, it has also made it easier for tenants to unlawfully sublet properties without the knowledge of landlords and letting agents.
So how can landlords combat this issue?
The latest analysis from No Letting Go has revealed that regular property visits can help to protect letting agents and their landlords from the growing risk of subletting scams. According to the data, a professionally compiled inventory and commitment to the check-out process can also help to provide financial cover in the event of property damage.
One recent example, which featured on BBC One’s Inside Out programme, saw a managing agent discover a family being checked into a rental property by the existing tenants. Further research uncovered a long-running subletting scam with over 70 reviews of the property left on Airbnb over the course of the tenancy. The tenants were eventually evicted but not before they had cost the landlord a significant amount of stress and money in repairing property damage.
For the vast majority of landlords, this will not be an issue but with subletting scams reported to be on the rise, it’s clear that all landlords need to be fully aware of such issues and be as vigilant as possible to help safeguard themselves from potential problems now and in the future.