Landlords Need to Be aware that Subletting is on the Rise
Category Rental Articles
It would seem there has been a substantial increase in the number of subletting contracts that have come to the fore over the last few months. The rise in subletting agreements is a material concern, it is only through the comprehensive checks done that one will discover tenants with multiple lease agreements on their name. This can only mean they are putting the lease in their name for friends/relatives who would otherwise not have qualified. The person who puts the lease on their name charges third party fees for their service and the vicious cycle continues.
The tools available to industry should circumvent these things from happening. It is only when these tools are used correctly that one will identify the risks associated with subletting and multiple lease scenarios.
We have seen tenants with 4 leases on their name and an income of R17 000.00 p.m. Whilst the credit scores are good, the tenant would not qualify for more than one of the four in place. This is tantamount to fraud and it is critical that landlords use reputable agencies to do the necessary checks and balances to protect their investment. The impact of a non-paying third-party tenant can be nightmarish to resolve and it is not in anyone's interest to be placed in this position.
At Seeff, we do everything possible to mitigate the risks associated with placing a tenant, it is for this reason we are a sound partner in your journey to finding the right tenant. Should we suspect a potential fraudulent application, we do not entertain the application any further and raise the awareness with the applicant and landlord. Whilst we are not able to guarantee the tenants performance during the lease agreement, we do all possible to alleviate as many risks as possible upfront.
Multiple lease agreements, subletting scenarios and fraudulent transactions are the very reason it pays dividends to use strong reputable companies with access to the right tools. Whether the leases are managed or unmanaged, the placement of the right tenant upfront will make the journey easier and less stressful.
Speak to your Seeff Agent today about securing the best possible tenant for your property with the least amount of stress.
Author: Nancy Oeschger