Sub-letting is when a tenant transfers part (but not all) of their interest under a tenancy agreement to another person but the original tenancy agreement with the landlord continues. The first tenant is called the head-tenant and the second tenant is called the sub-tenant. The agreement between them is called a sub-lease.
If you want to sub-let a rental property, you must first get the landlord’s written consent. If you are thinking of becoming a sub-tenant, you should ask to see written consent from the landlord to the head-tenant. A sub-lease may be for part or the whole of the premises. The period of the sub-tenant’s agreement with the head-tenant cannot be longer than the head-tenant’s lease with their landlord.
The head-tenant is considered to have made another tenancy agreement with the sub-tenant, while still keeping their original agreement with the landlord. The relationship between the head-tenant and the sub-tenant is the same as that between a landlord and tenant, and all the same rights and responsibilities apply. For example, the sub-tenant would tell the head-tenant of any repairs needed to the property, and could make a compensation claim against the head-tenant if those repairs weren’t made and the sub-tenant suffered a financial loss as a result.
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If you’d like to take advantage of electronic conveyancing in Melbourne or in the states where PEXA is currently active and you need an electronic conveyancing lawyer, contact the Wollerman Shacklock team. We’re happy to help move the process along for you.