Shared owners, beware of subletting
Subletting is when a tenant rents out their home to another person for a temporary period. If you’re a shared owner, it’s usually not allowed, and if you do sublet, you should be very cautious.
This is because the Renters’ Rights Act, which came into effect last month, now treats you as a full private landlord. This change significantly tightens the rules and reduces flexibility. Here’s what you need to know.
Difficulty ending tenancies
With the end of Section 21 “no-fault” evictions, you can no longer easily take back your home without a valid legal reason. You can’t simply ask a tenant to leave when the lease's fixed term ends. Now you need specific grounds, such as wanting to sell the property or a serious breach by the tenant, and you must be able to provide evidence to support your claim.
This is particularly important for shared owners because subletting is often a temporary arrangement, and the previous rules made it much easier to take your home back when needed.
Reduced flexibility
Even when you can take back your home, you generally need to provide longer notice, and the process can take longer. If you want your home back quickly, it will be more challenging under the new regulations.
Extra compliance
Shared owners who sublet will need to comply with new landlord regulations. This includes providing tenants with official information and following updated tenancy structures. This increases your legal risk and administrative responsibilities.
For more information and guidance, please visit the government website.
If you're already subletting your home or considering doing so, please contact us to discuss this further*.
Please note, shared owners may take in lodgers (rent out a room while still living there) with our permission, and this arrangement is not affected by the Renters' Rights Act.
*Whilst these government rules apply to all shared owners who are subletting, if we manage your home on behalf of another organisation, other rules and processes around shared ownership may differ.