How to Sublet Your Room for Short-Term Rentals
Friday March 15 2024
Whether you’re travelling, moving in with a partner, or simply have an extra room to spare, subletting is a sneaky, cheeky (but legal) way to make use of your space and earn some extra cash. But before you jump into the world of subletting, there are a few things you need to weigh up. In this article, we’ll guide you through the process of subletting your room, from finding the right person, setting up a fair rental agreement and making some coin.
Source: Pedestrian.TV
What is subletting?
Subletting is when someone rents all or part of a property from a person who is already renting that property from a rental provider or landlord. With subletting, the person being sub-let to (known as a sub-renter) is not on the lease. If all parties are on the lease this is known as co-renting. The person or people whose names are on the lease is known as a head renter or head tenant.
You can sublet for a short amount of time (like going away for a holiday and having someone stay in your room while you’re gone), or a longer period (like getting a new housemate).
How to sublet in Australia
We’ll guide you through the process of subletting in Australia, from finding the right tenant to legal considerations and tips for a smooth subletting experience.
1. Weigh up the pros and cons
Whether you’re planning a long vacay or you just need some extra cash, subletting can be a red hot option. It allows you to temporarily rent out your space while you’re away, which means you won’t have to pay rent during that time. Sounds great, right?
Before you dive right in, you’ve gotta suss the potential downsides. One major player is the privacy implications. Having someone live in your space while you’re not there can feel unsettling. There’s always a chance that your belongings could be mishandled or damaged, which can be a cause for menty b on return from your supposed relaxing 2 month “finding yourself “ stint in South east Asia. It’s essential to carefully vet potential subletters to ensure they are trustworthy and responsible (we’ll get to that in a sec).
Another drawback of subletting is the dreaded admin, Renting out your apartment or room involves a fair amount of paperwork and coordination. You’ll need to draft a sublease agreement, advertise your space, and screen potential subletters. Once you’ve found a suitable candidate, you’ll have to coordinate move-in and move-out dates, handle any maintenance or repairs that might be needed, and ensure a smooth transition for both parties.
On the flip side, subletting can offer some great advantages. It allows you to earn extra income while you’re away, which can be a huge financial relief. Plus, having someone occupy your space can minimize the risk of break-ins or vandalism. And let’s not forget about the potential cultural exchange that can happen when you sublet to someone – your new roomie can teach your current roomie how to crochet, they’ll water your plants while you’re away and might even become besties!
2. Ask your landlord for permission
If you’re considering subletting your rental property, it’s crucial to obtain permission from your landlord first. Not only is seeking approval a common courtesy, but it can also save you from potential legal issues down the line.
In many states, like Victoria, asking your landlord for permission is mandatory. However, it’s important to note that a landlord cannot unreasonably refuse your request. So, while there might be a few guidelines involved, having a good relationship with your landlord can make the process easier.
Before approaching your landlord, it’s essential to understand the terms of your lease. Make sure you thoroughly read the agreement to determine whether subletting is even allowed. If it is, familiarise yourself with any restrictions or alterations that might apply.
When talking to your landlord, be polite and explain why you’re seeking to sublet. Highlight any benefits, such as ensuring the rent will be paid on time and maintaining the property’s upkeep. Providing reassurances that you will find a responsible and reliable subtenant can help ease any concerns.
Remember, always ask for permission before subletting to avoid putting your lease at risk. By following the proper channels and maintaining a respectful relationship with your landlord, you can enjoy a stress-free subletting experience. Phew!
3. Advertise your room
So, you’ve decided to sublet your room. Smart move! Finding someone to take over your lease can be a breeze if you know where to look. If you don’t already have a potential tenant in mind, fear not, because I’ve got some awesome suggestions for you to advertise your room online.
Websites like Flatmates.com.au are popular among renters - we’re not just saying that either, our National Survey results showed that 65% of people found their new housemate on Flatmates despite only 38% exclusively using our platform - that’s called over-indexing and we love to see it.
Source: @Grapejuiceboys
Flatmates also lets you browse to see who is looking for share accommodation in your area.
Now, let’s talk about your listing. To make your room stand out, be sure to mention all the awesome features and amenities it has to offer. Describe its size, the furniture included (if any), and any additional perks or unique characteristics that make it special. Don’t forget to mention the location of the room within the property, and its proximity to key areas like public transport, shopping centers, and parks. Paint a picture of the overall atmosphere, whether it’s a cozy and peaceful sanctuary or a vibrant and lively space. And of course, let people know who else they might be living with.
Lastly, when it comes to determining how much to charge for your room, make sure you’re looking at market value, not just what it’s costing you. Take into account similar listings in your area and adjust accordingly - a great place to start is our Value My Room tool. Remember, you want to attract potential tenants, so finding the right balance between affordability and value is key.
Ready to go? List your room or property to get started.
4. Write a sublet agreement so everyone is clear about the rules
A sublet agreement not only protects your rights as a head tenant or landlord but also ensures that everyone is on the same page and clear about the rules.
It helps to avoid any misunderstandings or disputes that may arise during the sublet period. It clearly outlines important details such as rent and utilities, which can prevent any confusion or disagreements down the line. Additionally, a sublet agreement should specify what furnishings are included in the sublet and who is responsible for any damage that may occur.
When drafting a sublet agreement, there are a few key components to include. First, make sure to clearly state the rent amount, due date, and method of payment. It’s also important to outline any utilities that are included or excluded from the rent. Next, specify what furnishings are included in the sublet, such as furniture, appliances, or other amenities.
Additionally, outline any rules of the apartment, such as quiet hours or restrictions on pets. Lastly, it’s crucial to detail what happens in the case of damage to the property, including who is responsible for repairs and any associated costs.
To get started, check out our Flatmate Agreement Template.
5. Choose your new flatmate
The right housemate can make or break your subletting experience. It’s important to get everyone in the house involved in the decision-making, as they are the ones who will be living with the new flatmate.
Create a checklist of qualities and characteristics you all value in a potential flatmate. This can include being responsible, respectful, and considerate.
When reviewing applicants, pay attention to their rental history and references. These can provide valuable insights into their reliability and compatibility. Meet with potential candidates to get a sense of their personality and how well you connect with them.
Remember, choosing a flatmate is not just about finding someone to share the expenses with. It’s about finding someone you can trust and get along with on a daily basis. So, take your time, consider your options, and make a decision that will contribute to a positive living experience for everyone involved.
Read more about finding the perfect flatmate
6. If there is a bond, lodge it… properly
If you’re renting a property, you’ve probably heard the term “bond” thrown around. But do you know what it is and why it’s so important to lodge it properly?
A bond is a sum of money paid by a tenant to their landlord or property manager at the start of a tenancy. It serves as a form of security for the landlord, protecting them against any potential damage or unpaid rent that may occur during the tenancy. But it’s not just for the landlord’s benefit; it also offers peace of mind for the tenant, as it sets clear expectations for both parties.
Lodging a bond involves following a specific process and meeting certain requirements. In Australia, the bond must be lodged with the relevant state or territory authority within a specified timeframe. This is to ensure compliance with legal guidelines and protect the interests of all parties involved.
To lodge a bond properly, you’ll need to complete the necessary paperwork provided by your state or territory authority. This typically includes a bond lodgement form and a condition report. The condition report details the condition of the property at the beginning of the tenancy and is used as a reference point when the tenant moves out.
By lodging the bond correctly, you can ensure that you are meeting your legal obligations as a tenant while also safeguarding your interests. So, next time you’re renting a property, remember the importance of properly lodging your bond. It’s a small step that can make a big difference in your renting experience.
7. Get the room ready
It’s time for you to be the host with the most and get your space ready.
First clear any clutter from the room. Remove unnecessary items and create a clean and organized space. This will not only enhance the overall aesthetics but also provide a sense of calm and relaxation.
Next, give the room a thorough cleaning. Dust surfaces, vacuum the floor, and wipe down any furniture. Pay special attention to high-touch areas like doorknobs and light switches. A pristine and fresh environment will leave a lasting impression.
If you advertised the room as furnished, make sure everything you promised is there, and for short term rentals remember to have clean and spare linen available for your guests. Double-check that the bed sheets, pillowcases, and towels are fresh and neatly stacked. Extra blankets and pillows can be added for added comfort.
Lastly, make sure you have left everything your guests might need. Provide them with the wifi password, a note indicating the location of cleaning supplies, and any other relevant information. This thoughtful gesture will make their stay hassle-free and enjoyable.
What to consider when subletting
Subletting can be a great way to make some extra cash while you’re away or to help cover the costs of your rent. However, before you jump into it, there are a few key factors you need to consider.
First and foremost, check whether your building allows subletting. Some buildings have strict rules and regulations in place, so it’s important to know what you’re dealing with before you start advertising your space.
Next, make sure to get your landlord and housemates on board. It’s important to have their permission and support, as they will be sharing the space with your subletter. Open communication is key!
Think about whether you’re comfortable with someone in your space using your things. If not, consider removing any personal or valuable items before your subletter moves in.
In terms of pricing, it’s important to do some research and find out what a reasonable price is for your area. Take into account factors such as location, size, and amenities.
If you expect your subletter to look after a pet, then the price would normally be lower. Alternatively, you might even consider paying them, as people usually pay for pet sitters.
Subletting can be a win-win situation for both parties involved, but it’s crucial to consider these key factors before making any decisions. By doing so, you’ll ensure a smooth and positive experience for yourself, your subletter, and everyone else involved.
Potential legal issues and how to avoid them
Subletting can be an attractive option if you want to make some extra cash or if you’re looking for a temporary place to crash. However, before you jump on the subletting bandwagon, it’s important to be aware of the potential legal issues that could arise.
First, it’s crucial to note that subletting rules vary from state to state in Australia. In Victoria, for example, you must seek permission from your landlord before subletting. However, landlords cannot “reasonably refuse” your request. This means that if you have a valid reason for subletting and your landlord cannot provide a reasonable objection, you should be able to proceed without any issues.
Other potential legal issues to consider include the responsibilities and liabilities you may incur by subletting. As the original tenant, you are still ultimately responsible for any damages or breaches of the tenancy agreement. If your subtenant causes damage or fails to comply with the terms of the agreement, you may be held accountable.
To avoid these potential legal pitfalls, it’s crucial to have a clear and detailed subletting agreement in place. This should outline the rights, responsibilities, and obligations of both parties involved. It’s also wise to conduct thorough background checks on potential subtenants and obtain references to ensure they will be reliable and trustworthy.
In conclusion, subletting can be a great way to rent out your space or find a temporary place to stay, but it’s important to navigate potential legal issues carefully. Familiarise yourself with the subletting rules in your state, secure permission from your landlord, and establish a comprehensive subletting agreement to protect yourself and your subtenant. Happy subletting!
Does home insurance cover your flatmates?
When it comes to living with flatmates, it’s important to understand the limitations of standard home insurance. While this type of insurance typically covers damage caused by fire, theft, and certain accidents, it may not fully protect you when you’re sharing a home with others.
If you’re renting a property with flatmates, it’s essential to consider additional coverage options such as landlord insurance. This type of insurance can provide protection in case of damage caused by your flatmates or if they fail to pay their share of the rent. It can also cover legal expenses related to disputes, which can be quite useful when multiple people are living together.
Another consideration is host liability insurance, especially if you’re planning to rent out your property on short-stay platforms like Airbnb. This type of insurance can provide coverage in case a guest is injured or their belongings are damaged while staying at your place. It’s crucial to check with your insurance provider to confirm if you’re covered by your home insurance or if you need additional host liability insurance.
Subletting can also offer some insurance benefits. In some cases, your home insurance coverage can lapse if your property remains unoccupied for a certain period. By subletting your space, you ensure that your home is occupied, thus maintaining coverage. However, it’s important to review the terms and conditions of your home insurance policy to fully understand how subletting affects your coverage.
Ultimately, to ensure you’re adequately protected when living with flatmates, it’s advisable to carefully assess your insurance needs and consider options such as landlord insurance or additional coverage for short-stay hosting platforms.
