The Financial Aspects of Subletting Your Apartment

The Financial Aspects of Subletting Your Apartment Image via Isorepublic.com Make sure you are allowed to Before you even consider subletting, make sure your landlord is okay with it. Go through your lease documents and see if there is anything about subletting written there (including if there are any additional subletting fees). If subletting is not mentioned in your lease documents, you can call your landlord and ask for their permission. Once you have their permission, you can search for a subtenant. Security deposit Just as you had to pay a security deposit before moving in, it’s reasonable that your subtenant also has to pay a security deposit before they move in. You can even do a walkthrough of the place beforehand so that you and the subtenant can agree on the state of the place. This is important because although it will be the subtenant living there, at the end of your lease, you may be ultimately responsible to the landlord for any damages. The amount you can charge for the security deposit definitely depends on the situation, but it shouldn’t be more than the deposit you paid. Rent A good rule of thumb is to charge your subtenants 70-80 percent of the rent you pay. Of course, this may vary depending on the location or time of year (in big cities or during the summer, you can get away with charging more.). In your subletting agreement, make sure you mention to whom the subtenant should pay (should they pay it to you or directly to the landlord?). Clearing this up will avoid confusion and pay day headaches. Check out this article from Forbes for more information on subletting agreements. Utilities Similarly, discuss with your subtenant how much they will pay for utilities. Will you switch the name on the utility bills to the subtenant’s name? Also, make sure your subtenant knows when these bills are due! Speaking of “when bills are due Late fees A late payment from your subtenant can become a big problem very quickly. Remember, you are ultimately responsible for the monthly payments, so you have to make sure this is covered. Let your subtenant know by when they should pay the rent, and how much additional they have to pay if they don’t pay it on time. Yes, subletting is a great arrangement for someone who will be temporarily vacating their apartment. Just make sure to get permission from your landlord, and to talk to the subtenant about rent, a security deposit, utilities, and late fees beforehand.