Is it ethical to make money from subleasing an apartment?
Yes it is ethical, people do it all the time. Your landlord maybe could make more money, but he contracted with you to allow you use of the premises for the amount you’re to pay in rent and he must abide by the contract. Provided you act within the contractual terms (and local housing code) with regard to notice, occupancy, and any other relevant provisions, you’re fine.
I am having trouble identifying what makes this any different than the “buy low sell high” mentality of stock trading The difference is that stocks are freely tradeable under clear rules and your apartment lease isn’t. It all depends on the specific terms of your lease agreement. If you get your landlord’s consent to sublet then it’s perfectly ethical. If you mislead your landlord about what you’re doing, it’s not. By the way, it’s not free money. You have a lot of legal liabilities with the arrangement you’re describing. As long as no one flakes on the rent or damages the apartment you’re fine. But if there’s a problem, you may well be left being the one financially responsible.
Nothing unethical about it at all. (If your prospective tenants don’t have a lot of cash, there’s nothing stopping them from taking the cheaper apartment you’ve got your eye on.) But there are risks… If your apartment is rent-controlled or rent-stabilized, then there may be very specific restrictions about subletting. In NYC, for instance, you can only charge a subletter a 10% premium on the original rent, and that only if you provide furnishings. Check your lease, which should indicate any such restrictions. Also, if you’re not going to be resident in the apartment, then you absolutely need a sublease contract. One, so your renters are on the hook for damages if they trash the place, and two, so it’s easier to boot them out should you want or need to move back in. Again for instance in New York, full legal protections kick in for your tenants after 30 days of residence, whether or not there is a lease, and whether or not they’ve ever even paid rent. After that you would need to go t
“By the way, it’s not free money. You have a lot of legal liabilities with the arrangement you’re describing. As long as no one flakes on the rent or damages the apartment you’re fine. But if there’s a problem, you may well be left being the one financially responsible.” This is exactly why it’s not unethical — you’re not getting something for nothing, you’re being compensated for taking some risks.
As footnote said, you should check the relevant laws in your jurisdiction to make sure it’s legal. Also read the lease closely. As far as whether it’s ethical (regardless of legality), I think it is. People sublet and get below the full rent regularly. I see no reason people shouldn’t have to pay more either.
