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Subletting

In simple words subletting means creating a rental agreement / lease agreement, where the tenant rents out all or part of the building to another individual for a particular period. In most cases it is a part of the rented premises and not the entire premises. Renting out the entire space could result in breaching of the lease agreement. The individual to whom the property is rented out is a subtenant.

Subletting can be worked out in two ways

1. The Tenant becomes the Landlord to the subtenant. In such a case – the original tenant is a tenant to the Landlord and has to abide by the rules of the lease agreement. He is a landlord to the subtenant and has to follow the sublease with the subtenant. In such a case, the original tenant is liable for all the actions of the subtenant. In this case the Landlord expects you to pay the rent though you are renting out the property with his permission.

2. The Tenant becomes a cotenant along with the subtenant. In such as case, the original tenant and the subtenant are jointly responsible and in lease with the Landlord

As a Tenant, in most occasions, subletting is done

(i) You want to come back to the same apartment at a later date.

(ii) You are staying with your room mates and at-least one of them is staying behind. This is most common with bachelors accommodation or students accommodation.

(iii) Companies when they downsize – also think of subletting the premises.

The First and Foremost thing to be done before subletting the property is to check with the Rental Agreement / Lease Agreement for the subletting terms and conditions. If it is not mentioned or permitted as per the agreement, then you have to get a written permission explicitly from your Landlord (better in writing) before you sublet the property to avoid conflicts and legal issues. In such a case, the Landlord may charge a fees or additional rent for subletting the property.

Sublease

Sublease is a lease agreement between the tenant (who already has a lease with the Landlord) and the new occupant who will take a part of the building or whole of it for a particular period. The Landlord is generally not a part of the sublease. The sublease claims that the original tenant decides to let someone else share and stay in the property with the permission of the Landlord. On the other hand, as an owner of the Property, the Landlord, having more rights can refuse to sublet. 

Sublease can be for a long term or short term. The sublease does not affect the lease between the Tenant and the Landlord but the original lease is incorporated by reference in the sublease. Similarly a sublease cannot overrule the restrictions contained in the original lease. For instance, if the sublease is for a restaurant and if original lease has a restriction for commercial or retail, then the sublease cannot be allowed.

Though subletting could be an ideal (practical) choice for making use of the unused space in the rented house and also generate additional income, you need to evaluate the pros and cons of the decision.

Advantages of Subletting

  1. Space Utilisation – If you have a space that is unused, subletting results in maximum utilisation of the vacant space.
  2. If you are not staying in your house and paying the rent, then you feel that money is being wasted. When you sublet – you are sharing the rent thereby saving money.
  3. If you are frequently travelling and will be away from your property regularly, then you have someone to take care of the property in your absence.
  4. Helps to ensure that the Landlord gets the rental payments due to flexibility of financial burden and sharing of the maintenance tasks.
  5. You do not break the lease when you sublet the property and gives you flexibility.
  6. Subtenants can become primary tenants at a later date if required.

Disadvantages of Subletting

  1. Tenant Finding is the most important factor in subletting. You have to make a thorough background check of the individual before subletting else it could pose a serious risk to both the tenant and the Landlord and you can end up with many obstacles.
  2. If the subtenant is unreliable, you could end up spoiling your reputation with the Land Lord. Since your reputation is at stake, you can use the services of Rental Assistance Service Providers or Property Management Service providers to find a tenant or do the background check.
  3. If the subtenant damages or skips the rent, then you will end up paying for the same because the Landlord is not a part of the sublease.
  4. The Landlord must rely on the primary tenant to ensure the original terms and conditions of the lease are followed by the sub tenant.
  5. If there is a conflict with the subtenant then you will run into various obstacles. You will be responsible to the terms and conditions as per the original lease agreement with the Landlord.
It is very important to create a sublease agreement and not do things over a handshake or by word of mouth. This could result in leaving you open to pay for the damages and taking over unpaid rents.

Keys Factors to consider for Sublease Agreements

  1. It is important to determine the security deposit (along with the rent) when subleasing the property to cover the damages and unpaid rent (if any in future).
  2. The Sublease should mention the rent and the payee details to be clearly mentioned – whether it is to be paid to the Tenant or to the Landlord.
  3. The Sublease should specify the period of the sublease and the renewal terms and conditions.
  4. The sublease contract should clearly mention the property extent that the subtenant will use and control including the utilization of the amenities and common areas including the parking sharing.
  5. The condition of the property is to be mentioned and any improvements to be done by the sub tenant should be mentioned.
  6. The sublease is to mention the purpose for which the property is to be used and the duration of the same.
  7. There should be a plan for the payment of the common bills and the utility bills. 
  8. The Sublease should mention the utilization of the premises and the amenities provided to the subtenant

Conclusion

Now that you have got a fair idea of the subletting, subleasing the important point is that you have to screen the subtenant and make sure he is reliable else it could cause more problems than solving the problems. The worst thing that can happen is having a tenant who is unreliable and breaches the sublease. You are ultimately legally responsible with the Landlord.

Key Factors to Examine Before Enlisting a Property Manager for Managing your Property

If you are looking for a Property Manager for taking care of your Property, then Hiring a Property Manager is a major decision to take care of your property. The Property Management Company that you hire will be responsible for your assets and will be on the Front end interacting with the Tenants, contractors and all the other areas to upkeep your property.

Having taken the decision, you need to decide on the Property Management Services you require and streamline based on attributes which will suit you.

Professional with Good Communication Skills

The Property Manager represents you and therefore you have to be sure of his professionalism. Good Communication Skill is the basic requirement of a Property Manager since he has to handle multiple tasks and has to interact with multiple people for upkeep of your property.

It can be stressful at times when there are delays in works or rent collections and patience is another virtue that a Property Manager needs to have. At such times, the Property Manager need to be assertive at the same time polite to get the job done.

The property manager needs to build strong relationship with the tenants, community, vendors and neighbourhood. Good Communication skills along with quick and timely response are the essentials of essentials of a good property manager.

Multi Tasking Ability

Property Managers do several tasks and at times it happens that multiple tasks come at the same time for different properties. The Property Manager should have the infrastructure and ability to perform the tasks with an organized approach.

Technology & Learning

Technology is growing in leaps and bounds and this has brought in lots of changes in the communication methods. What was imagined years before (like video calling) is now a days very common among kids too. A good Property Manager should embrace the latest technology, software and use it to his advantage to give quicker and more effective service.

We stop growing when we stop learning – I have heard this from people. A good Property Manager should be a good learner and competent with information about the market, rules and regulations, factors affecting property rental and sales and all other factors related.

Efficient Management

There is a saying which says that “Money saved is Money earned”. A Property Manager with Good Negotiating skills will save money for you by skilfully negotiating with the contractors, tenants, vendors, annual maintenance contract service providers and various other areas. Reduction of cost and efficient financial management will increase your income.

It is also important to handle expenses and to efficiently rectify issues when they are small and not delay it for a high expense at a later date. He has to be proactive to foresee the future expense and do the timely repairs to avoid major repairs in future.

He should efficiently manage the rentals with minimum vacancy period there by maximising the returns on investment.

He needs to be tuned with the Rental Dynamics and be shrewd enough to suggest value added things to increase the rental income for the owner.

Ability to manage the day to day chores like advertising, screening tenants, rental agreements, rent collection and upkeep of property with timely repairs and maintenance and Tenant Management.

Decided to hire a Property Manager

Property Better than U

Clearly list out the Property Management Services that you are looking for. No one knows your property better than you.

Hire a Property Manager

Hire a Property Manager who is aligned to your thinking process and values.

Detailed Discussion

Discuss all minute details - Have a detailed discussion about the list with your Property Manager – it could be negotiating rents, maintenance of the property, inspections and regular updates of your property.

Trust your instincts

Trust your instincts and gut feeling to sense if there is transparency, genuinely, sincerity, professionalism, sense of commitment, patience, negotiating skills etc.

Documents Required for NRI Property Management Services

Are you an NRI having property in Chennai?

Documents Required for NRI Property Management Services

Our Property Management Company understand the efforts required to manage and maintain a property and the tenant. We have a vision to align our services with the owner’s vision to take care of properties the way the owner will take care of his properties – Documents Required for NRI Property Management Services.

Agile Property Management offer professional Property Management Services to NRI’s and Indians having properties in Chennai.

Details of our NRI Property Management Services is listed below:

All Time Services

 

  • Representing the Owner
  • AMC Coordination and Servicing of Appliances as per AMC Contract with the Service Vendor
  • Follow up & Coordinating Payment of Taxes.
  • Coordinating Repairs & Maintenance.
  • Follow Up of House Insurance (if any).
  • Inventory Check when the tenant occupies and leaves the home.

Services When the Property is Vacant

 

  • Regular Cleaning and Checking the Property.
  • Rental Assistance Service – Tenant Sourcing and Finalization, checking the ID Proofs – company and personal, Tenant Profile Details
  • Follow up and Coordinating EB Payments
  • Follow up and Coordinating Maintenance payments (if any).

Services When the Property is Occupied by Tenant

 

  • Tenant Management
  • Rent Collection & Rental Deposit Follow Ups
  • Visit to Property to check on Maintenance by the Tenant
  • Rental Agreement follow ups and increments as per the Contract.

The Benefits of using our NRI Property Management Services:

  • Professional Service with Regular Updates
  • We can take care of your multiple properties in different locations throughout Chennai City
  • Saves your time and effort
  • You do not have to get involved in day to day activities
  • Do not have to depend on relatives / friends / neighbours as obligation.

Documents Required for NRI Property Management Services

  • ID Proof
  • Property Details
  • Property Tax Details
  • EB Consumer Number
  • AMC Contract Details for Amenties in the property

 

You are now just a click away to manage your property professionally through Agile Property Management Services.

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Need for a Property Management Company

Investment in properties is a major investment and people invest in properties invest it for the two major reason – The first reason is driven by the need of people to own a property for own use. The second reason is for the purpose of investment with an intention to get a rental income and benefit on the appreciation at a longer term.

The need of a property manager is more for the people who purchase properties with an intention of getting a rental income and benefit on the appreciation on the long term.

The requirement for the property manger becomes more necessary when the owners are not able to take care of their properties due to the following reasons:

  1. Property Owners are away from their property – When the property owner is away from their property be it an apartment, individual house or a plot, there is always a question in the mind of the owner as to what is happening around his property. Since the owner is away from his property and not able to monitor it, he takes Property Management Services from a Property Company to professionally take care of his property and receive regular updates.
  2. Property Owners have to take care of multiple properties – This is basically the case of people who invest money in properties at different locations within a city. The distance factor of multiple properties purchased by the investor will make it easier for him to manage his properties with the management of a professional property manager who will take care of his properties at different locations.
  3. Property Owners do not have time to take care of their property – There is an old saying that a busy man finds time for everything. The modern saying is that a busy man finds time for everything and if he is not able to take care of it, he delegates it to proper people to take care of things. An Owner who is busy and does not have time to take care of his property hires a good and professional property manager to take care of his properties the way he will manage it.
  4. Property Owners do not want to get involved in day to day activities of taking care of their property – There have been instances when the owner does not want to get into day to day activities of doing all activities of taking care of the property and want to relax by assigning the job to someone else. Who could be better than a professional Property Manager.
  5. Property Owners do not want to depend on their relatives or friends to take care of their property – There is nothing better than depending on the dependable relatives and friends to take care of your properties but there could be practical difficulties which could arise like
    1. Parents getting old.
    2. Relatives / friends not finding time to take care of the property.
    3. Relatives / friends getting transferred or are at a distance from the property.
      Under such circumstance and other circumstances not mentioned here, it becomes difficult to take care of the properties. It is then that the owner thinks of taking the help of Property Management Services of a Property Manager.
  6. Property Owners do not want to personally interact with the residents – Some property owners feel that it is best for them not to interact with the residents, association, workers and other people for their property upkeep. The reason could be anything ranging from wanting a peace of mind to having a buffer for better negotiation for their properties. These owners are willing to pay for their peace of mind and they hire property managers to take care of their properties.
roles responsibilities property-manager

The Roles and Responsibilities of Property Manager

A Property Manager is a third party person or a firm hired by the owner of a property to manage and maintain his property and to handle the day to day affairs of the property. The property could be residential, commercial, industrial ranging from single homes to large apartment complexes – Roles Responsibilities of Property Manager.

When the owner is not able to handle and attend to the details or not interested in doing or handling the day to day affairs, he hires a property manager for a fees. Therefore the Property Manager’s main responsibility is towards the owner and secondly towards the agency for which he works. The Property Manager has to periodically report to the owner with necessary updates on the property and the owner may also delegate specific tasks apart from the regular tasks that is carried out by the Property Manager which is done for an extra fees mutually agreed upon.

A Property Manager has to arrange for a wide variety of services as per the needs, requirements and goals of the ownership. He has to deal with the regular services and also be quick enough to tackle the emergency issues services as and when it arises.

The Roles Responsibilities of Property Manager

Roles Responsibilities of Property Manager

Property Manager should have a good understanding of the market value and rental values and also be able to understand the rent where the property is located and its comparison with properties in the same locality for any difference in rent. Property Managers should advice the owner on the right rent and fix the right rent to attract the tenants.

One of the major responsibilities of the Property Manager is Rental Assistance. It starts from finding a good tenant through reference or advertisements and other marketing techniques. On identification of a tenant, proper screening is to be performed by the tenant. A good property manager will ensure a long term tenancy and prompt payment of rent on time every month. If any point of time, the tenant does not pay the rent, the property manager should get to the core of the situation and ensure proper payment of rent and may have to handle and evict the tenant.

The Property Manager handles the lease with necessary protection to the owner and his property. The Property Manager is responsible for listing the amenities when a tenant moves in.

Similarly he is responsible for inspecting the property when the tenant moves out and determine the amount of deduction from the security deposit and cleaning the property and bringing it back to rentable condition. The property Management should be able to fill in the vacant property in minimum time by his Rental Assistance Service.

Property Managers are responsible for physical management of the property and has to be well equipped to handle any Repairs or Maintenance irrespective whether it is vacant or occupied by the tenant.

The maintenance could be a regular maintenance like servicing of the amenities in the house or any emergency maintenance that may arise during the tenure of the maintenance. Overall the Property Manager should provide excellent Property Management Services.