Lease Options for Tenancies

When applying for rental properties, tenants have two options for the lease agreement: Co-Tenancy or Sub-Tenancy.

Tenants who wish to sub-lease must have written permission from the landlord.

As a landlord, you have the right to issue a tenant who is sub-leasing without your consent, 14 days notice to vacate.

Landlords must present a valid reason for refusing to allow a tenant to sub-lease and a tenant has the right to take the matter up with the relevant authority, if they wish to pursue the matter.

The Advantages of Co-Tenancy for Landlords:
•The tenant shares the responsibility of the management with one or more people
•It is easy to transfer the tenancy from one person to the next
•If there are enough co-tenants to satisfy the rent, there is more chance of securing a property’s lease

The Sub-Tenancy disadvantages for Head Tenants

•A head tenant takes on the legal responsibilities of the landlord and will have to personally deal with any disputes.
•A head tenant has to vet all potential tenants and will, therefore, have to deal with the consequences of a poor assessment
•If a sub-tenant leaves without paying, the head tenant is responsible to recover the outstanding monies

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Jason Gwerder
Tuesday, 19 May 2020

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