Subletting a flat - how it works in practice

What is subletting?

In short - subletting is when we let someone a flat (or part of one) that… we are already renting ourselves. In such an arrangement we therefore distinguish:

• the flat owner - holds ownership of the property and earns money by renting it out;

• the tenant - that is, us; we pay the owner rent for the flat and let it out to someone else in turn; when subletting, we may live in the flat ourselves, but we do not have to;

• the subtenant - pays rent to us - not to the owner - and lives in the flat.

Subletting can apply to the whole property as well as to part of it - for example, letting out individual rooms as lodgings is popular. It can be done both by ordinary tenants who already live in the flat in question and by companies - for larger-scale activity, setting up a business is in fact advisable if we want to avoid problems with the law.

Subletting without the owner's consent? Out of the question

Whatever form of letting we choose, we will need the property owner's consent. The matter of subletting is often regulated in the tenancy agreement itself - if it is not, we can ask the landlord to add an appropriate annex.

In theory, if the agreement contains no provision forbidding subletting, we can take it up "straight away". However, no estate agent would ever recommend such a solution - obtaining the owner's consent in writing will not only keep us safe but will also be, quite simply, the fairest solution for all parties.

Earning money from subletting

If we have already received the property owner's consent to sublet, we can finally put our plans into action. How can money be made from subletting?

First - we can opt for short-term subletting. Investors in large cities (especially those that are popular with tourists) often rent properties on long-term agreements, and then sublet them to visitors for a few days or weeks. The rates for such letting (or rather subletting!) are much higher, so we can really earn considerably more than the rent we pay. Of course, running "holiday" subletting requires devoting a great deal of our time - it is almost a full-time job.

Another way is subletting a flat "by the room". The rent for an entire unit is usually lower than the combined cost of renting individual rooms. So if we fill every room and avoid vacancies, we will be able to profit from the difference in rent.