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Landlords warned over increase in unauthorised and illegal sub-letting by tenants

Business Rates Reports|

Sub-letting is on the increase within the private rented sector as the cost of living crisis bites, it has been reported.

Direct Line says nearly half of all tenants who sublet rooms within their property have not told their landlord or checked they are allowed to within their rental contracts.

The insurer polled some 600 tenants within the private rented sector recently and says the figure represents an increase in the number of tenants subletting.

But Direct Line's own advice pages make it clear that this '�subletting' is to a significant extent created by unauthorised rent-to-rent operators within the private rented sector.

The primarily the insurer pins this on more tenants seeking to offset the recent and ongoing rise in rents within the UK.

'With the market having seen an increase in average rents in the last year, it is hardly surprising that a larger number of renters are tempted to offset this expense by subletting their property,'� says Sarah Casey (pictured), landlord product manager at Direct Line business insurance.

'Landlords and tenants need to be aware that subletting has serious insurance implications.

'Subletting is not covered under most landlord insurance policies, so it's really important that landlords make tenants fully aware of the restrictions on the lease and maintain that communication to help prevent any breaches.

'�Tenants also need to be aware that their contents insurance is very unlikely to cover any theft or damage to personal property in the event of subletting.'�

The research also reveals that three quarters of tenants get away with the practice, with just 23% of landlords eventually finding out that a tenant has been subletting.

Read more about subletting and insurance.


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