Is It Legal to Sublet in Australia

Each tenant has the right to sublet unless the landlord has been exempted from the provision of the Residential Tenancies Act 1995 (SA) which provides for subletting [section 74]. An exemption applies if the landlord is a registered municipal housing association [subsection 74(2a)]. So what does Sublet mean? Simply put, subletting occurs when a tenant under a residential lease leases part of the rental property to another person. Subletting requires the written consent of the owner. They also cannot charge a fee for their consent to subletting. Tenants can appeal to state courts if they believe their landlord has unreasonably rejected their sublease request letter. These, in turn, can decide whether subletting tenants should be allowed. « Subletting occurs when the tenant transfers some, but not all, of his legal interest under the lease to another person, such as a legal interest in a room or part of the apartment, but the original lease with the landlord remains in place, so that the first tenant has legal obligations, like paying the rent, » he says. For renters, mastering what subletting means can be beneficial.

This is a great way for them to reduce their rental costs. In short, subtenants remain fully liable to the landlord of their lease. A landlord can claim from the main tenants any material damage from the subtenants. The principal tenants, in turn, can sue the subtenants for any claim for damages. Landlords and other landlords cannot refuse to consent to subletting because of the person`s ethnic origin, disability or gender identity. The Equal Opportunities Act 2010, which describes protected personal characteristics, also sets limits on the denial of subletting permits. Landlords, on the other hand, need to pay attention to what subletting means for their property. Subletting, also known as subletting, is about the right of landlords to protect their investment in the lease. You have rights over how they are cared for and who lives there. The subtenants thus become the main tenant and their tenants the subtenants. As the primary tenant, they must assume a landlord`s legal responsibility to their subtenants.

Please note the following before subletting the property: So if there is a customary right for a tenant to sublet, can a landlord prevent a tenant from subletting their interests? Unless there is an absolute prohibition preventing a tenant from subletting a lease, there is nothing to prevent a tenant from subletting ownership of the leased property. Although summer is approaching at the time of writing, many people will be looking for a rental property to rent, especially students. For many young people leaving home for the first time, there are a number of issues that need to be addressed, and finding an apartment may be at the top of the list. Also, people studying obviously won`t have the kind of purchasing power that a full-time worker would have, so many students will try to rent out a property, with one of the most common options being subletting a property. Whether you own or rent, an experienced real estate attorney can help you formulate a sublease that complies with the law. Our legal advisors at Owen Hodge Lawyers can help you include important legal clauses, clarify or resolve issues, and perform credit checks for potential subtenants. A landlord may terminate this contract because a tenant who sublets without the landlord`s consent violates the following: A tenant may only sublet with the written consent of the landlord, but a landlord`s consent to sublease cannot be unreasonably withheld [section 74(2)(b)(i)]. However, even if a tenant has sublet in breach of the contract, this cannot affect the subtenant`s subscription right [§ 74 para. 2a].

It is important for landlords to understand that a second lease is created when their tenant sublet. With this second lease, landlords must be aware that their eviction and the other rules of the lease must be followed. However, it is these main tenants who will enforce the original lease, such as the eviction of stray subtenants. When it comes to a question of law, the question of reasonableness – for example, whether a landlord was unreasonable in refusing to allow a tenant to sublet – boils down to the facts of each individual case. It is best to obtain the consent of the primary owner at an early stage. I have seen cases where the tenant and subtenant negotiated and executed a sublease agreement where the primary landlord was a party to the document, and only then obtained the owner`s consent/performance afterwards. Since the landlord was only involved at this late stage, this resulted in increased legal fees for these other parties, as the landlord requested various changes to the documents and the other parties had to re-execute the sublease. Subletting is an arrangement whereby a tenant rents out a room or room to someone who is not listed in the lease – and although it is legal in Australia, the landlord must give permission.

But landlords must also accept, regardless of their feelings about what it means to sublet an apartment, that subletting is legal. In Australia, this legality is guaranteed by the provisions of the Residential Tenancies Act. Tenants can contact authorities if they believe their landlord has unreasonably withheld their consent. Landlords may refuse their tenants permission to sublet for the following reasons: The repossession of a tenant who leaves may be considered a sublease. A short-term stay, such as an Airbnb accommodation, is also a sublet. However, it is not sublet for tenants who have a visitor or guest in their rent. This is provided that this accommodation is not for commercial purposes. Subletting offers significant profit potential and gives a lot of thought about what it means to sublet an apartment. This takes into account the fact that of the 8.3 million households in Australia, 32% or 2.6 million households rent their homes. Many renters may also benefit from the increase in home-sharing seen in the proliferation of tourism-focused Airbnb.

This fact sheet is intended as a guide to the law and should not be used as a substitute for legal advice. It applies to people who live in or are affected by New South Wales, Australia. © New South Wales Tenants` Association. There is customary law that allows a tenant to sublet their interest, but it is common for an agreement in a lease to not allow or limit a tenant`s ability to sublet. Rental properties in registered community organizations cannot be sublet. So your landlords don`t care much about questions about what it means to sublet an apartment. You can simply refuse to sublet people in social housing, because that would be unfair to other people who are waiting for more affordable social housing. Unlike the obligation to sublet the property through a tenant, they are able to do so, and the landlord cannot unreasonably withhold consent. The common law will consider consent to subletting to be inappropriate if: Generally, this law allows any tenant to sublet, with a few exceptions (more on that later). In subletting, as mentioned earlier, tenants of an apartment or house rent a room in their rented dwelling to another person.

With the transfer of your rental to another person and the vacancy of the premises, your legal responsibility for the rental ends. If you believe the landlord is unreasonably withholding consent, you have the option to appeal to the Civil and Administrative Court of New South Wales (NCAT). On the other hand, if there is an agreement between the landlord and the tenant that excludes their customary right to sublet the property, then any act in which the tenant sublets his interest in the property is considered a breach of the agreement.