Subleasing—it’s not going away. There are a number of online applications which can be used by those who travel regularly, and are looking for affordable rates which are less costly than those commonly associated with hotel rooms. AirBNB.com can save a lot of people a lot of trouble—but if you’re a Landlord, this new service can be a thorn in your side. You might even consider using real estate software to help you get the job done.
Subletting can be very dangerous. At the same time, it can be rather convenient. It turns out there are pros and cons associated with the practice which are eminently considerable for those managing property. Pros and cons in regard to subletting will accordingly be explored below.
What is the prerogative of someone zipping through an area briefly? Are they there for a job interview? Are they dodging “heat” from law enforcement in another district? Are they just looking to party? You don’t know what motivates these people. You can guess, but you don’t know. Additionally, many looking to sublet will lie through their teeth if it suits them.
What onus do they have? Who keeps them honest? They could be a close friend of your leased tenant, and tell that friend that they’ll take care of the place; then move in, do a bunch of drugs, invite a number of questionable ladies from the bad side of town, and leave the unit an utter wreck.
So there are safety issues to consider, fugitives initiate legal considerations, and all of this is not to mention the passage of money under the table to which you have a right as a landlord. Unless subletting is allowed in the lease, your lessee needs to give you, at the very least, a cut!
You can make more money through lessees subletting the property they’re renting from you. If you include subletting in the lease, you can increase rent—that’s your cut. If you didn’t include it in the rent, but you catch somebody subletting, you can raise the rent on them—provided the laws in your state allow as much.
Additionally, it’s possible for you to change a lease from six months or a year, to STR (Short Term Rental) rates which are higher for a shorter period of time. Essentially this makes you a high-dollar hotel, but if things are slow, it can be a great way to maintain your bottom line going forward. As an option, subletting exists and is considerable.
Also, you can use your long-term renters as outbound scouting agents, should they be reliable. They’ll likely be more apt to vet people who will live in close quarters with their personal belongings, allowing you to circumvent much of the negative aspects of subletting earlier outlined.
Managing Properties Better
Companies have developed as a solution for landlords looking to manage STR situations. As housing prices increase and personal wealth decreases, such living situations will increasingly grow to encapsulate the status quo. Getting ahead of such trends is essential for the survival of your profit as a landlord, and the properties which make it possible.
There are many different ways to conduct your properties. You’ll want to upgrade them where possible in terms of “green” augmentations for tax-breaks and trendiness. And you don’t have to own some apartment building to be a landlord. If you’ve got a detached basement with a separate entrance, you’ve got a rental space that can pull in anywhere from $400 to $1,000 a month, depending.
So think outside the box, and weigh the pros and cons of subletting. You may find that your personal situation makes such a move wise, or unadvisable. Everybody’s different, but one thing is sure: the changing living landscape of the world today is supported by new industries which help manage it, and can assist you in making the right choice.