Subletting

Published 09 May 2022Updated 24th February 2023

Subletting

What is Subletting?

Subletting is when a tenant rents out a room or space to someone who isn’t listed on the lease agreement. It’s not illegal to sublet in Australia, but the tenant needs to get written permission from the property owner.

This is because when a tenant signs up for a lease, they enter a contractual relationship with the landlord through a tenancy agreement. But by subletting the property, they transfer a part of their legal interest to someone else.

For example, if your current tenant lists your property on Airbnb, that’s a classic case of subletting!

The new tenant gets similar responsibilities to what the original tenant had, like paying rent and keeping the place neat and tidy.

FAQs about Subletting

When is subletting legal?

As long as your tenant has written consent from you, they’re able to sublet your property. Things get complicated only when you refuse to give consent. If you withhold consent without a valid reason, your tenant can take up a case against you at the Tribunal.

According to Australian law, consent for subletting cannot be withheld when;

The reason for objecting to subletting has nothing to do with the relationship between the landlord and the tenant regarding the lease.
The tenant is a respectable and responsible individual.
The reason for withholding consent has to do with an impact on potential investors.

In South Australia, landlords are also unable to include in the lease agreement conditions that limit or deny subletting, nor ask for extra money to consider this request. Unless you’re exempted under the Residential Tenancies Act 1995, your tenants are entitled to sublet your property.

However, it’s important to know that for the sub-tenancy not to be considered as an assignment of the tenancy agreement, it needs to be at least one day less than the original tenant’s lease term.

The original tenant will also be held responsible for the actions of the sub-tenant. If a sub-tenant has damaged your property, for example, your rights as a landlord ensure that you can hold the main tenant accountable.

When is subletting illegal?

You should know that, depending on the residential tenancy law in your state, there are instances where you can deny a tenant from subletting your property. This is especially the case if you find that the tenant has a bad rental history.

Other reasons where you can object to subletting include:

If the number of occupants exceeds the number of people permitted under the agreement or planning laws
If you think it will lead to overcrowding

In Victoria, a landlord can also withhold consent for subletting for people in public housing, as it is unfair to those waiting for an opening.

Subletting a property has its own share of risks for a landlord. From property damage to security issues, by-law breaches, disruptions in the neighbourhood and other consequences, the landlord is often the one who bears the costs. To prevent this, make sure to read up on the subletting rules in your state early on.

What legalities should I know about when subletting a property?

There are 4 things you need to keep in mind before you decide to sublet your property:

Seek permission from the owner to sublet
Document the arrangement, including signing a new tenancy agreement
Lodge a bond
Understand the sub-tenant’s responsibilities

For more details on subletting, contact your state’s residential tenancies authority or tenant’s union.

Disclaimer: The information provided on this blog is for general informational purposes only. All information is provided in good faith; however, we do not account for specific situations, facts or circumstances. As such, we make no representation or warranty of any kind whatsoever, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information presented.

This blog may also contain links to other sites or content belonging to or originating from third parties. We do not investigate or monitor such external links for accuracy, adequacy, validity, reliability, availability or completeness, and therefore, we shall not be liable and/or held responsible for any information contained therein.

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