If you own a property, but no longer need or want to live there, then renting it out could be a great money-making venture. However, if you lease your property, make sure to read the fine print, or you could be in for a nasty surprise.
Q: I own an apartment, which I am currently letting to tenants. I recently received a letter from my landlord telling me that I needed their consent before renting out the flat. They have asked me to pay fees and have also told me that I must sign a licence. It all seems very odd. It is my apartment, after all, so surely I can do what I want with it?
A: Whether your landlord can require you to enter into a licence to sublet and pay associated fees depends on the terms of your lease. It is not unusual in a long residential lease for there to be a clause stating that you cannot sublet without the landlord's consent, though such consent is not to be unreasonably withheld.
We strongly recommend that you check your lease carefully to see whether it contains any provision requiring consent to sublet, whether it allows your landlord to charge a fee for granting you consent, and also whether a licence to assign is actually needed.
You may be able to dispute or query the fee being demanded by your landlord.
If you have a mortgage, please check the terms of your agreement as often the mortgagee's consent is required for subletting.
It does sound in this case as though your landlord is prepared to allow you to let out your flat. However, do check the lease because if, under its terms, your landlord's consent is not required for subletting, then they cannot insist on a licence, or indeed demand any fees from you.
Need Help Deciphering Your Legal Paperwork?
For legal advice regarding all landlord and rental matters, or simply some guidance to help understand the fine print of your paperwork, please contact our team of conveyancing experts who will be happy to help.
