Subletting occurs when a tenant rents out part or all of the property they are renting to another person, called a subtenant. The original tenant remains on the lease and is responsible to the landlord, while the subtenant pays rent to the original tenant.
In most Australian states, a tenant must get written consent from the landlord before subletting. The landlord can refuse consent, but in some states the refusal must be reasonable, and you generally cannot refuse without a valid reason.
Subletting vs Adding a Tenant
There is an important difference between subletting and adding someone to the lease. When a tenant sublets, they remain the primary tenant on the original lease and are responsible for the subtenant's behaviour, rent, and any damage. When someone is added to the lease, they become a co-tenant with equal rights and responsibilities alongside the original tenant.
From a landlord's perspective, having a tenant on the lease gives you a direct legal relationship with them. With a subtenant, your relationship is only with the original tenant.
Common Subletting Scenarios
- Room rental: the tenant rents out a spare bedroom to a housemate while continuing to live in the property
- Holiday subletting: the tenant lists the property (or a room) on a short-stay platform while they are away
- Full sublet: the tenant moves out temporarily and sublets the entire property to someone else
Short-stay subletting through platforms like Airbnb is a particular concern for landlords because of the higher wear and tear, potential insurance issues, and possible breaches of body corporate by-laws.
Why It Matters for Landlords
Unapproved subletting can expose you to risk. You may not know who is living in your property, the subtenant has not been screened, and your insurance may not cover damage caused by someone who is not on the lease. Include clear terms about subletting in your lease agreement and ensure the tenant understands they need written approval before subletting.
propkt tracks tenant and occupant details for each property so you have a clear record of who should be living in your rental at any given time. For tips on vetting tenants from the start, see our guide on how to screen tenants in Australia.