A new business is offering landlords a share of tenants’ earnings when they sub-let their rented homes.
Landlords can be approached directly or through agents, and are offered a 20% split.
SharenSplit aims to make sub-letting profitable and transparent.
It has been launched by Robert Sonato, a former student and now a chartered surveyor, and 23-year-old Marcello Pelucchi.
Both were frustrated at renting properties that sometimes stood empty, but which they still had to pay for.
Sonato said: “As a tenant, I found myself spending over half of my wages on rent every month.
“This was hard enough to swallow when I was occupying my property, let alone when I was away and the property was sitting empty, especially as a student, when the property I was renting was typically empty for roughly a third of the year.
“My co-founder Marcello changed houses five times in four years during his time at university, to avoid paying rent over the summer months.
“This is why we decided to create our own solution.”
The platform, available nationally, provides a dashboard where they are able to monitor the tenants’ hosting activities, including guest profiles, and review.
Tenants also have access to the dashboard, where they can create and manage their listing, which is synchronised with platforms such as Airbnb and Homeaway.
Sonato said: “It allows tenants to cover their rent whilst away and provides landlords with a means of ensuring that their tenants are not sub-letting illegally, as well as additional income on top of the passing rent that they typically receive.
“We have a partnership with an insurance provider to cover this specific scenario.”
However, Sonato said that some lenders are not totally happy with the idea.
He said: “The lenders we have spoken to have given us a mixed response so far. However, many have told us that as long as there is a long-term tenant in place and the sub-letting is done on an informal basis (i.e. short term rental guests – not longer term sub-tenants) then they would not have a problem with it.”
The platform is looking to forge relationships with letting agents.