Subletting by tenants w/o landlord's approval - VIC

Hi,

Just like the title: tenants of my property are attempting to sub-let one bedroom of the three BR property. It appears one of the three named tenants on the lease has already moved out. No communications to the LL or PM seeking approval.

-Three tenants, three bedrooms, one tenant has apparently moved out. No notice to the PM about this despite recent communications to the PM about other matters.
-Remaining two tenants have listed the room for sub-let on a share house site very recently
-Ad mentions that there will be one more person moving into the property (partner of one of the tenants) - this is also not advised to the LL or PM. This increases total occupants to 4, creating issues with overcrowding and wear & tear.
-Sub-let arrangement on offer by the tenants includes access to a shared bathroom, living/kitchen areas, garage, courtyard, deck, etc.
-Tenants are at the end of their fixed term lease and are now on month to month
-Ad mentions that they are willing to accept smokers (no no) and students (I previously have declined student applicants due to noise/tenure issues).
-Lease is standard REIV lease that requires LL consent for sub-letting in writing, not to be unreasonably withheld.
-I have saved the share house site ad for my records

My questions:

-Is this act enough to serve them with a breach notice and 14 days notice to vacate if they successfully let it to sub-tenancy agreement/occupancy without LL approval in writing?
-I have AAMI LL insurance for fixtures/rent - is this likely to be voided by the sub-let agreement?
-What LL expenses/losses are borne by the tenant from the bond apart from damage in this case- lost rent/re-tenancy costs/advertising/vacancy?
-Anyone had such a termination notice challenged at VCAT by the tenants, and what was the result?
-What advice do the seasoned pros have for me as LL?

Have had a sub-letting happen without consent a while ago and I let it go after the fact (i.e. post-occupancy consent) and it turned into a nightmare - really keen to not repeat that.

Cheers,

Super

 

To answer your questions..

1. More than likely. Or they would need to apply for the property and be approved, you can't unreasonably withhold consent as advised above.
2. Read your policy. I find a lot of the bigger insurance policies aren't worth the paper they're written on, but that's another story.
3. Tenant not liable for rent after they vacate, nor advertising costs etc. Only damages to the property.
4. Not in a very long time, but it's not uncommon. You'd have to prove why new tenants isn't suitable.
5. Let them apply, process their applications and make a decision from there. They might be atrocious and that makes it easy, or they might be very good and you get years worth more out of them without coating you vacancy. Yes there will be an extra person by the sounds of it though, which might not be ideal - but that will largely depend on the type of property. Four people in a three bedroom isn't unreasonable.

 

I'm not actually convinced it is a breach of the tenancy agreement.

Firstly some terminology issues - its probably not sub-letting if they are renting out a room while still living there - its probably a sub-license. There is a legal difference.

So unless they're breaching some other terms of the lease, or you want to try to terminate for no grounds, then its not going to be an easy as you think perhaps.

 

I would assess by how the place is kept and how they pay, just get these people on the lease.

 

Yep my thoughts exactly.

Eg do you want to bounce them.....then yep use this.

Do you want to lock them into a new fixed lease with an increase...then yep use this application to do so.

If they DONT contact you for an application and you see from the ad the apartment is filled....then arrange a PM inspection and "based on new tenant" bounce them or sign them up for a new lease.