Is Your Tenant Subletting

Is Your Tenant Subletting

Beware the Sublet”

Is Your Tenant Subletting

An unfair quirk in the law can leave Landlords substantially out of pocket.  This was highlighted by the recent case of Cheryl Roux, former wife of Michelin star chef Albert Roux.  So, is your tenant subletting?

A bogus Tenant, introduced by a fake London letting agency, rented Mrs Roux’s £5m Knightsbridge property. That Tenant then advertised the property to legitimate Tenants on Airbnb and Zoopla, raking in £835 a night, with none of this going to Mrs Roux.

On the surface, there would seem to be a case for eviction due to non-payment of rent by the “head Tenant” (who is known as the “mesne Tenant” [pronounced “meen”] when subletting). However, this criminal mesne Tenant does not actually live in the property – the sub-tenant does. The Landlord does not have a contract with this “legitimate” sub-tenant.  Therefore, it is virtually impossible to evict them, and they can lawfully occupy the property. Once a property is let and there is a contract between two parties, it is a matter for the Civil Court.  It is not a matter for the police, if a dispute arises.

Referencing

This highlights the incredible importance of letting to a well-referenced Tenant through a legitimate professional letting agency.  For example, at Callaways, we always ensure that our contracts prohibit sub-letting. Our in-depth training ensures that we are always alert to the possibility of scammers.  Scammers will try to rent out Landlords’ properties with an ulterior motive – to make money.  So far, we have never had an issue.  That doesn’t mean to say we haven’t heard of many who’ve tried to go it alone, or through an amateur letting agency.  We know of horrendous consequences.

Are you a Landlord?  Letting out property is not just an investment activity.  It is a serious business in its own right. We’ll help you maximise your yield with caution and detail.  In addition, we  minimise the risks associated with anything other than a thoroughly professional approach.

For advice on our specialist Letting, Property & Tenancy Management services, call 01273 735237 or email enquiries@callaways.co.uk .