New research reveals that more than two-thirds (68%) of UK landlords have discovered their tenants letting out the property without permission.
The most common way these ‘secret sublets’ come to light is through neighbours reporting unusual activity or frequent new faces at the property (31%), closely followed by routine landlord inspections (28%) and complaints from other residents about noise or damage (24%).
Landlords are also taking to the internet to check for illegal subletting, as one in six (15%) found evidence online or via social media after suspecting something unusual. One in five (20%) spotted their property listed on a rental website such as SpareRoom, Airbnb or Gumtree.
Nearly half of landlords (43%) conduct routine property checks every six months, while three quarters (74%) inspect their property at least once a year. Of those who have found out their tenants were subletting without their permission, almost two-thirds (64%) said it had happened within the last 12 months.
When discovering a secret sublet, the majority of landlords said they issued a formal warning to the tenant(s) (34%) or reported the situation to a letting agent and property manager (30%).
Over a quarter (26%) said they allowed the sublet to continue under new terms or with freshly written permission, whilst a further one in four took legal advice but did not act further (27%). However, some landlords took a stricter approach, as a quarter either immediately requested the subtenant to leave (27%) or started eviction proceedings against the original tenant (25%). Over one in five (22%) decided to increase the rent or charge a subletting fee.
To address subletting, just over three quarters (77%) of landlords said they made updates to their tenancy agreements to address subletting. Over a third have included penalties or consequences for unauthorised subletting (35%), whilst 34% require tenants to formally request approval for any guests or subletters staying for more than a set number of days.
Over a quarter (28%) have revised the language in their agreements to make existing subletting rules clearer, and nearly two in five (38%) have added a specific clause prohibiting subletting without written permission. One in ten (10%) don’t believe it’s necessary to make any changes.
A spokesperson for Direct Line business insurance – which commissioned the research – comments: “Landlords work hard to look after their properties, so it’s understandable that secret subletting is a real worry. Direct Line urges landlords to ensure that they stay up to date with their periodic property checks and make tenants aware about rules in relation to subletting or moving in additional tenants.”
Not all landlords are opposed to subletting, over half (53%) say they would consider allowing subletting if certain conditions were met. These conditions include having clear terms and insurance coverage (16%), full vetting of subtenants (13%), ensuring subtenants meet the same standards as the original tenants such as references and credit checks (13%) and allowing short-term sublets during specific periods only (11%), such as summer holidays or student breaks.
However, some landlords remain strongly opposed to subletting, with a fifth (18%) believing that subletting fundamentally undermines their control over the property and a further 8% citing bad personal experiences or stories from other landlords.
The spokesperson continues: “Our research shows that not all landlords are opposed to subletting, but the security of knowing who’s living in their property and that the right checks are in place are important. In this case, being upfront with tenants about what is allowed, and putting clear agreements in writing, can help prevent misunderstandings and protect everyone involved.
“As always, having open communication with the tenants is a great way to create a safer, more trusting renting environment for both landlords and tenants.”
