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Sublease Agreement Template
A sublease is a rental contract between the tenant on a property that agrees to sublet to a subtenant. This usually requires permission from the landlord unless allowed in the tenant’s lease. Under a sublease, the tenant is directly liable for the actions of the subtenant. For example, if the subtenant violates any part of the agreement it is up to the tenant, not the landlord, to send notices and handle any possible eviction. Therefore, it is recommended that the tenant require all subtenants to complete a rental application before signing an agreement.
Landlord’s Consent to Sublet – Use to obtain permission from the landlord if subletting is prohibited in the tenant’s lease.
What is a Sublease?
A sublease or sublet is when a person who is currently under a lease re-rents the same property and space to someone else (“subtenant”). The landlord must agree and consent to any sublease or subletting situation not approved on the original lease.
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Table of Contents
- Residential
Step 1 – Obtain Permission from the Landlord
Step 2 – decide what to sublet (whole or part), step 3 – take photos.
- Step 4 – Best Websites to Sublet
Step 5 – Screen the Subtenant
Step 6 – write the sublease, step 7 – subtenant obtains occupancy.
- Is a sublease agreement legally binding?
- Is sublease income taxable (GAAP)?
- Difference between an assignment and a sublease?
Can a security deposit be charged in a sublease?
What happens if you break a sublease, how to sublease (7 steps).
Most standard leases prohibit the tenant from subleasing the property. It’s imperative that the tenant obtain permission (which can be a difficult thing to do) before finding a subtenant (use the Landlord’s Consent Form ).
TIP : Most landlords do not want to see a tenant walk away from a lease. Therefore, a tenant may have to threaten walking away to be able to sublet the property.
Decide whether to sublet the entire space or only a portion of it. When deciding, it’s best to look up what is available to see the price for both and choose which option makes the most sense.
Take the best photos possible that will entice potential renters to come and view the property. It is recommended to always make sure a corner of the room is in each photo to better capture the depth and size of each room.
Step 4 – Best Websites to Sublet (5)
The best websites to sublet a property are as follows:
- Craigslist (low cost)
- Airbnb (high fees)
- Zillow.com (1 free listing)
- Apartments.com (1 free listing)
- Sublet.com (free with ads)
Generally speaking, subtenants are high-risk candidates to lease a property. It is highly recommended to require a rental application to be completed by the subtenant and a non-refundable fee for conducting a credit check. Use the Top 11 Tenant Screening Websites to run the consumer reports.
In addition, the last two (2) years of tax returns and current pay-stub should be required to verify their income. If the tenant is going to live with the subtenant, a background check may be required as well.
If the subtenant is approved then the parties can negotiate the final terms of an agreement. For security, the tenant should require a deposit equivalent of one (1) month’s rent and give them a copy of the original lease.
It should be understood by the subtenant that they are required to follow the terms and conditions of the original lease and the sublease.
After the lease has been signed and the initial payments have been made (security deposit + 1st month’s rent) the subtenant will be given access to the premises. After move-in, the subtenant will have the right to live and remain on the property until the end of the sublease term.
Frequently Asked Questions (FAQs)
Is a sublease agreement legally binding , difference between an assignment and a sublease .
Yes , as long as the tenant is legally allowed to sublet the premises.
The main difference is an assignment gets the tenant off the hook where a sublease requires the tenant remain liable on the original lease. For example, under an assignment, if the new tenant stops paying rent it is the landlord’s problem. Under a sublease, the subtenant not paying rent would require the tenant to pay the monthly amount in their original lease.
Yes , a security deposit can be charged as long as it follows State landlord-tenant law. A common requirement is to charge the equivalent one (1) month’s rent as the security deposit.
If a subtenant breaks a sublease the tenant will be liable to evict the subtenant , not the landlord. For non-payment, the tenant would have to send an official notice to the subtenant, wait for the notice period, and hope to be paid. If not, the subtenant will be required to vacate the property or else the tenant will be required to file an eviction process with the local court.
All while the tenant is still required to pay rent to the landlord for the amount stated in the original lease.
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Sublease Agreement
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What is a sublease agreement?
A sublease agreement is a document used by a tenant who has a lease to a residential property so that they can assign their rental rights in the property to another individual, called the subtenant . The subtenant then takes over all or a part of the tenant's time in the property via the original lease. This agreement can be used when the original tenant will be gone from the property for either a portion or the entirety of the remaining term under the original lease agreement. The subtenant may pay rent to either the landlord or the tenant to take over the space the tenant initially rented from the landlord.
For more information on the specifics of subleases and their related obligations, please refer to the legal guide Tenants and Subtenants Obligations Under a Lease Agreement .
What is the difference between a sublease agreement and a lease agreement?
Though both documents are used to rent a property, different parties are involved. A sublease agreement involves a subtenant taking over some or all of a tenant's time renting a landlord's property. The lease agreement is used directly between a tenant and landlord .
What is the difference between a sublease agreement and a lease assignment agreement?
A lease assignment agreement is different from a sublease agreement because the entirety of the lease interest is being transferred in an assignment . With a sublease, the original tenant is still liable for everything, and the sublease may be made for less than the entire property interest. A lease assignment transfers the whole interest and puts the new tenant in place of the old one.
Is it mandatory to have a sublease agreement?
No, it is not mandatory to have a sublease agreement. If the landlord allows it, a third party can move into a tenant's space and take over the rental payments. However, most leases specify that a tenant must have the landlord's permission before subleasing and that if subleasing is going to occur, the parties must use a sublease agreement. Without a sublease agreement, the danger and liability for all parties involved increases. If the third-party stops paying rent, the tenant may be held responsible for those missed payments. If the tenant violates their lease by subleasing, they may be evicted, leaving both the tenant and the third party without a place to stay.
What is a "sublessor"?
The sublessor is the original tenant who is leasing some or all of their interest in the property to the third party.
What is a "subtenant"?
The subtenant is the third party who is leasing some or all of the tenant's interest in the property from the tenant.
What is a "master lease"?
The master lease is the original lease agreement between the landlord and the tenant.
Who is involved in a sublease agreement?
The sublease agreement involves three main parties. The first party is the landlord . They are the person who has initially rented out the property. The next party is the tenant , also referred to as a sublessor. They are the party who originally rented the property from the landlord. The final party is the subtenant . They are a third party who is taking over some or all of the time remaining on the lease between the original tenant and landlord.
What can the duration of a sublease agreement be?
The sublease can run a maximum of the remaining time left on the original lease . Once that time has passed, if the subtenant wishes to continue renting, they must make a lease with the landlord.
What should be done once the document is complete?
Once the sublease agreement has been written, the tenant and subtenant should both sign and date the agreement. If the landlord's consent is required for the sublease, the landlord should sign the document and write their own consent to sublease document. This document is then attached to the sublease agreement. The original lease should also be attached to this document. All the involved parties should save a copy of the sublease agreement in case of future misunderstanding or dispute.
What documents should be attached to the sublease agreement?
The original lease should be attached to the sublease agreement. If landlord consent is required, their written consent should also be attached to this document.
What must a sublease include?
A valid sublease agreement must contain at least the following mandatory clauses:
- Contact information : The sublease agreement should include the name and contact information for all the involved parties, including the subtenant, the tenant, and the landlord.
- Premises details : The sublease agreement specifies the address of the premises that is being subleased. It should also describe the premises, including the number of bedrooms and bathrooms, as well as any other information necessary to describe the premises.
- Important dates : The sublease agreement includes all relevant dates, such as the dates the master lease began, when it was due to end, and the dates when the subtenant will be taking over the property.
- Term length : The sublease agreement specifies whether the subtenant will be finishing out the remaining term of the original lease. For example, if the original tenant is moving away permanently, the sublease would say that the subtenant is taking over the entirety of the remaining lease.
- Payments : The sublease agreement outlines how much the subtenant will pay, who they will pay it to, and how those payments will happen.
In addition to the above mandatory information, the following information may also be included:
- Security deposit : The tenant has the option of charging the subtenant for a security deposit that will be used in case of any damage during the subtenant's stay in the property.
- Written consent: The sublease agreement includes the option of requiring the landlord to provide their written consent to the sublease. This consent to sublease is then attached to the agreement.
Which laws are applicable to sublease agreements?
Matters related to lease agreements are generally subject to the law of individual states . Different states have different requirements about the amount of notice a tenant must provide their landlord before subleasing the property. However, nearly all states require that some form of written notice be given to the landlord before the sublease.
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Guides to help you
- Tenants and Subtenants Obligations under a Sublease Agreement
- In a Lease Agreement, who has the Duty to Maintain and Repair?
- Renting an Apartment with Roommates
Sublease Agreement - FREE - Template - Word & PDF
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Sublease Agreement
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Free Sublease Agreement Template
A sublease agreement is a legal contract that allows the original tenant of a property to rent out their space to another individual, known as the subtenant, while the initial lease is still in effect. This arrangement allows the original tenant to maintain their primary lease with the landlord but offers the flexibility to temporarily vacate the property or rent out a portion of it.
Subleasing can be useful in various scenarios, such as when the original tenant is away for extended periods or if they find the rent burdensome. However, it’s essential to understand the intricacies involved, as subleasing brings its own set of rights, responsibilities, and complexities.
Key Differences: Lease vs. Sublease
A lease agreement is a contract between a landlord and a tenant. The landlord agrees to let the tenant use the property in exchange for rent. The lease sets out the terms, conditions, and duration of this arrangement. The tenant has exclusive rights to the property for the lease’s duration.
On the other hand, a sublease agreement doesn’t involve the property owner directly. Instead, the original tenant grants rental rights for part or all of the property to a subtenant. The primary tenant retains their responsibilities to the landlord and becomes a pseudo-landlord to the subtenant.
Essential Components of a Sublease Agreement
Sublease agreements should be comprehensive to avoid potential disputes. Key components include:
- Duration : Clearly specify the start and end dates of the sublease.
- Rent : Amount, due date, and payment method should be detailed.
- Maintenance and Repairs : Clarify who is responsible for what.
- Terms of Termination : Conditions under which the sublease can be terminated by either party.
It’s also essential to specify the rights and obligations of both parties, ensuring clarity and avoiding any potential misunderstandings.
Legal Considerations and Compliance
Before entering a sublease agreement, ensure the primary lease permits it. Some leases prohibit subletting altogether, while others may require landlord approval.
If permitted, follow any stated procedures. Violating these terms can result in eviction or legal consequences. Furthermore, local laws may have stipulations about subleasing; hence, being informed about state and municipal regulations is crucial.
Benefits and Risks of Subleasing
Subleasing offers multiple benefits: flexibility in short-term living arrangements, potential to reduce living expenses, and a way to maintain a lease while away.
However, risks accompany these benefits. The primary tenant remains responsible for any damage to the property and ensuring rent is paid. If the subtenant defaults on rent, the original tenant must cover it. Furthermore, poor subtenant behavior can jeopardize the original tenant’s relationship with the landlord.
Tips for Drafting a Fair Sublease Agreement
To draft a fair sublease agreement:
- Be Transparent : Clearly state all terms, ensuring both parties understand their obligations and rights.
- Seek Legal Advice : Legal consultation can ensure the agreement is sound and compliant.
- Include Details : The more specifics included, the less room for misunderstandings.
Ensuring a Successful Sublease Experience
Subleasing can be beneficial when approached with thoroughness and understanding. By comprehending the differences between leases and subleases, ensuring legal compliance, and drafting comprehensive agreements, both primary tenants and subtenants can have a positive subleasing experience.
For a smooth subleasing journey, always prioritize open communication, clarity in terms, and, most importantly, respect for all parties involved.
Guidance on Filling Out the Free Sublease Agreement Template
Step 1: fill in basic information.
Start by filling in the basic details of the agreement. Enter the [EFFECTIVE DATE] when the sublease will start. Then, write the names and addresses of both parties involved: [SUBTENANT NAME] and [SUBTENANT ADDRESS] for the person subleasing the property, and [SUBLESSOR NAME] and [SUBLESSOR ADDRESS] for the original tenant.
Step 2: Describe the Premises
In this section, clearly specify the address of the property being subleased. Replace the blank space in the “PREMISES” section with the full address of the property. Be as detailed as possible, including apartment or unit numbers if applicable.
Step 3: Set Payment Terms
Define the financial aspects of the agreement. Fill in the monthly rent amount, the due date for rent, and the preferred method of payment. For instance, if the rent is $1000, due on the first of each month, and preferred payment method is bank transfer, these details should be clearly stated.
Step 4: Outline Deposit and Utilities
Enter the amount of the security deposit and the specific conditions for its return. Also, clarify who is responsible for utilities. If the subtenant is paying a $500 deposit and is responsible for all utilities, this information should be explicitly mentioned.
Step 5: Insurance and Term Details
Require the subtenant to obtain renter’s insurance and specify the term of the lease, including start and end dates. For example, if the lease starts on January 1, 2024, and ends on December 31, 2024, these dates should be accurately included.
Step 6: Signatures
After reviewing and agreeing to the terms, both the Subtenant and the Sublessor should sign and date the agreement. Ensure that each party prints their name and dates their signature to validate the agreement. This formalizes the commitment of both parties to adhere to the terms set forth in the document.
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Sublease Agreement Template
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Sublease Agreement FAQs
What is a sublease agreement.
A Sublease Agreement is a legal document outlining terms under which an existing tenant (the "Sublessor") rents out a property to a new tenant (the "Subtenant"). It’s a crucial component in maintaining harmony between all involved parties and ensuring that everyone is clear on their rights and responsibilities.
Why is it important to mention Utilities in the Sublease Agreement?
Utilities are a crucial part of any residential agreement. This section should stipulate who's responsible for payment, preventing disputes over unpaid bills.
What is the role of the Deposit in the Sublease Agreement?
The Deposit section covers the security deposit's amount and terms. It serves as financial protection for the Sublessor, covering potential damages or breaches of agreement terms.
Can I sublease a property without the landlord's knowledge?
It's crucial to refer to your primary lease agreement. Many leases require the landlord's approval before subletting. Subleasing without consent may lead to eviction or other legal repercussions.
Who is responsible for property maintenance during the sublease?
The Sublease Agreement will specify this. Typically, the subtenant is responsible for daily maintenance, but significant repairs or issues related to the primary lease may fall on the sublessor.
Can the Sublease Agreement be terminated before its end date?
Yes, but conditions for early termination should be clearly outlined in the agreement. Both parties should agree on notice periods and any associated penalties or conditions.
What happens if there's a disagreement between the sublessor and subtenant?
The Dispute Resolution clause in the document outlines the agreed-upon process, whether it's Arbitration, Mediation, or Negotiation. It's designed to offer a structured way to resolve disagreements without immediate court intervention.
Are utilities included in the monthly rent payment?
Utilities are typically separate from the rent, with the Sublease Agreement indicating that the subtenant is responsible for them. However, specific arrangements can vary, so it's essential to detail them in the agreement.
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