There are more worrying developments in the UK PRS, as the practice of Rent To Rent within the UK residential lettings market is causing increasing concern among industry professionals.
The practice of Rent To Rent, sees one set of individuals renting a privately owned residential property within the UK private rented sector (PRS) and then sub-letting it to another tenant for profit, as a business.
It is widely believed that many Rent To Renters are operating without the landlord’s knowledge or consent.
Professional tenants have reportedly accepted a tenancy, signed agreements of multiple properties, then they have proceeded to sublet the properties to unsuspecting third parties, unaware of the true situation.
It is not in the landlord’s best interests to agree to take part in a ‘rent-to-rent’ scheme because there will be difficulties in obtaining possession should the rent not be paid as there is no contractual relationship between the landlord and the actual occupier.
Many tenants may struggle to find suitable rental accommodation in their chosen areas, however they may be unscrupulous people out there who are trying to make easy money from some unsuspecting would be tenants as the problem of subletting rental property without consent, has increased within both the private rental market and the social housing sector.
There is nothing stated in UK law governing the taking a tenancy and then subsequently subletting, however it is recommended that all tenancy agreements used by landlords and their agents should contain a clause preventing the sub-letting of the rental property.
It may cause private rented sector landlords problems but it is not an uncommon practice, commercial tenants are landlords to a sub-tenant. But there are a number of Rent-to-Rent businesses that are emerging with the express purpose of exploiting both tenants and landlords.
Landlords are urged to be aware of this practice and to seek advice if they discover that their rental property is being sublet without their express permission, as all sorts of problems can arise.
Remember, the landlord has no control over the occupiers or their actions, but may find themselves being legally pursued if noise or nuisance arises.
Many organisations sub-letting clauses include the right to carry out repairs and maintenance and then deduct the cost from the rent, but yet again this is a situation over which the landlord has no control.
If the person sub-letting the rental property gets into financial difficulty, the landlord has no contract with the legal occupier and may experience difficulty evicting the tenant or re-possessing the property.
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