What would be your initial reaction if you came across your investment property being marketed as a holiday home or weekend getaway by your tenant… without your knowledge?
While this is not an ideal scenario, and thankfully not commonplace, some landlords have found themselves in this situation.
Chances are you’d initially be confused and grow increasingly annoyed and frustrated. But, like any issue or concern that raises its head in relation to tenants, it is best to speak with your property manager as soon as possible and seek their help in managing the situation.
Whilst countries have differences in legislation relating to what a tenant can and cannot do in your property, landlords do have protection against their tenants when it comes to leasing out part or all of their property.
If you are unsure of your own situation, check with your property manager.
Most tenancy agreements include a clause which specifies that tenants cannot sublet without written consent. While consent cannot unreasonably be withheld, tenants may be in breach of their contract if they are found to be subletting without consent – whether as short-term or long-term stays.
If you or your property manager does come across evidence your property is being used by people other than the registered tenants on the lease, your property manager will ensure that appropriate action is taken with those responsible parties on the tenancy agreement.
Ultimately, it is up to you whether you are comfortable with tenants leasing out all or part of your investment property as ‘holiday stay’.
It is critical, however, that landlords, tenants and property managers have a clear and identical picture of what is, and what is not, acceptable.