is illegal subletting of property will invalidate your landlord insurance policy

Subletting property has increased these days as we want to make use of the unused space in the property. The landlords and the tenants should know that subletting has to be permitted and mentioned in landlord-tenant agreement before the tenant sublets the property.

When the landlord agrees his property to be sublet, the landlord has to inform his insurer from whom he has got Landlord Insurance, about the subletting agreement. Landlord insurance will become void in case the landlord does not inform the insurer about subletting. This is because of the simple yet powerful fact that landlord insurance will cover only the risks that are insured in the policy document.

Most of the landlords do a thorough tenant screening before they rent their property out to them. This will ensure safety to their property. But if the tenant is running short of money or feels that the house that he has rented out is too big, he would rent it out to another person. All this is done even without checking if the landlord agrees to sublet the property.

This will not only put the landlord and the tenant who has sublet the property in trouble, it will also cancel out the landlord insurance taken by the landlord and even the tenant contents insurance taken by the tenant.

www.insurance-landlord.org.uk advices that landlord should also make sure that he does not let single rooms to different tenants. This will make it a multiple occupancy home and the landlord has to face a hefty fine for it, in case the landlord does not have a multiple occupancy license for his property.

As a landlord one can do the following:

  • Do a thorough tenant referencing before letting your property.
  • Have a clear tenancy agreement and discuss it with your tenant.
  • Talk about the risks that both the landlord and tenant will face if subletting is not done legally.
  • When renting out your premises to a new tenant inform and introduce all your tenants along with their names to the neighbours. This will initiate friendly relations and also help you know if anything happens with your tenants.
  • Check the internet often to know if others have advertised of any vacancy for your property.
  • When any subletting is done, inform your landlord insurance company immediately.
  • Review your landlord insurance policy annually and change your insurer if required.
  • Make sure all your risks are covered in your landlord insurance.
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