Illegal Subletting

Subletting refers to a process in which an existing tenant effectively transfers his rented property to someone else. In practice, the majority of tenancy agreements will contain a clause to restrict subletting by the original tenant, either absolutely or conditionally, upon obtaining the landlord’s consent. This process poses challenges for both landlords and tenants as true property owners remain unaware of the additional subletting tenants.

Common signs of illegal subletting

Identifying illegal subletting is essential; common signs include
Unapproved occupants
Unauthorised alteration
Tenants consistently absent from the property
Unusual behaviour

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Lease violation in commercial properties

In cases involving commercial property, subletting is more common and, as such, will be more likely to lead to disputes between landlord and tenant. As commercial leases are different from residential leases and these are more diverse, so subletting of commercial properties results in complex situations. To mitigate these challenges, clear and comprehensive subleasing clauses should mentioned in the tenancy agreements. Also, regular inspections of rental property by the head landlord or from the agency person can mitigate these risks.

Prohibited Transfer and its Legal Consequences

Illegal subletting means that the transfer was not lawful, either because it was absolutely prohibited according to the terms of the lease or because the landlord has not given consent, although it should be noted that refusal should not be considered unreasonable. In cases of illegal subletting, the landlord may apply for a court order against unlawful sublet or, in extreme cases, for the forfeiture of the lease itself. It involved the termination of the tenancy agreement if the tenant failed to comply with the terms and conditions outlined in the rental agreement.

Challenging Subletting Allegations

In defending an action for subletting, the tenant may submit that the landlord acted unreasonably in withholding their consent and may even claim compensation, known as damages, for any consequential financial loss that they have suffered. Damage in this scenario can be a financial loss incurred due to these allegations. Tenants may present evidence and arguments to demonstrate the unreasonable allegations by the landlord. It is always advisable to resolve disputes by communication, and in some cases, the landlord and tenants agree to a new tenancy agreement with updated terms and conditions that suit both parties.

Legal guidance from expert property solicitors

Because disputes between landlords and tenants can escalate very quickly, it is essential to get legal advice as soon as possible when an issue arises, with a view to reaching a resolution before an action has to be brought. The expert property solicitors at Ackroyd Legal have diverse experience in acting for both landlords and tenants when disputes arise. We will look at all of the facts of your case and provide clear, practical advice on the next steps. Our expert solicitors gain a comprehensive understanding of the scenarios in your case through consultations. They review tenancy agreements and assess any potential legal difficulties involving all parties to mitigate potential risks.