If you are considering leasing your home or apartment to someone else, it is very important that you understand what subletting means. While renting out a place means you buy a property just for that purpose, subletting is leasing your current house to another entity. For instance, when college students go abroad to study for their semester, they will often sublet their apartments or rooms. The payment you receive from you subtenants helps cover the rent and maintain the unused space. Subletting is much easier that voiding an original lease. That way you will not have to find a new place to live in after returning.
People often get confused between renting, subleasing and subletting. To get a better understanding of what each stands for, here are the most commonly referred to definitions of subletting.
i. A sublet is when the original tenant of the property temporarily leases the property to a subtenant. The action of renting an already rented place for temporary use is known as subletting.
ii. Subletting can also refer to renting out a property to another party by the tenant at the time of their lease contract with the owner of the property.
Although the concept might seem foreign and rather confusing to many, there are number of uses of subletting that might come in handy, especially if you are someone living abroad. Here are some of the most common uses of subletting:
1. The main problem one might face when living abroad is maintaining their original property. Whether you are going out to study or visiting your hometown, careless upkeep of a property can later pose a lot of financial expense. This is when subletting can not only allow you to earn some extra money on the side, but also ensure good maintenance of the property while you are not there.
2. You might see many students and tenants struggling with their finances when living abroad. This is because even though they are not staying at the rented property, they will still have to pay rent to ensure the property is still theirs when they come back. This is nothing but wastage of money. However, if you sublet the property, your new tenant will pay you rent, which you can then you for the original rent. This will eventually save a lot of money while also ensuring a side income.
3. Lastly, subletting your room or apartment can ensure that you do not have to stress about the property. As mentioned above, the property will be well-maintained and ready for when you come back. In addition to that, once you have sublet the property, both the management and timely rental payments are your tenants responsibility, relieving you from any kind of stress while you are away.
