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What is a sublease agreement and how does it work?
You’ll need a sublet contract if you want to rent out your space to another tenant for a short term.
A sublease or sublet contract is a document that states a rental property or portion of a rental property is rented to another tenant for a short-term stay. If you want to sublease your room or rental unit, you need a sublease agreement, which is a written document that acts as a lease within a lease. It allows the original tenant (sublessor) to rent out their room, apartment, house, or other rental property to a subtenant (sublessee) for a limited time period.
Subleasing might be allowed under the original lease terms, but local laws or additional conditions could also restrict it. Even when subleasing is permitted, the original tenant remains responsible for fulfilling the lease obligations, including paying the monthly rent.
How a sublet contract works.
A lease is an agreement or contract between a property owner and a tenant, granting the tenant exclusive possession and use of the property for a specified period. The lease outlines the duration of the agreement and the tenant's rental payments. Legally, the tenant’s right to occupy the property is referred to as tenancy.
Subleasing occurs when a tenant transfers part of their tenancy rights to a third party, creating a new subtenant relationship. While subleasing is generally allowed unless explicitly prohibited in the original lease, the property owner usually must be notified and approve the arrangement. The original lease often includes terms granting the owner some control over the sublease process to manage who occupies their property.
Importantly, subleasing does not absolve the original tenant of their responsibilities under the lease. The tenant remains liable for rent payments, property maintenance, and any damages. If a subtenant fails to pay rent, the original tenant must cover the overdue amount and any associated late fees to the landlord. The subtenant is then responsible for reimbursing the original tenant for the unpaid rent.
What to include in a sublease agreement.
Now that you have a better understanding of what a sublease is and how it works, here is a list of common sections to include in your sublet contract. To make sure your agreement is legal, valid, and thorough, you might want to get legal advice on the language you use and, if possible, get your sublease contract looked over by a lawyer.
- Contact information. Both parties should fill out identification information like their name, phone number, and email address, as well as the full address of the rental.
- Original lease agreement details. Provide a copy of the original or master lease so both parties can reference it.
- Monthly rent. State the amount of rent owed per month or week, as well as how the renter should pay rent.
- Lease term. Include the move-in and move-out dates for the sublease term. Some subleases include the option to renew the lease at the end of the term. Make note of this in the contract if this is the case.
- Security deposit amount. You may require the sublessee to pay a security deposit as insurance against any property damage caused during their stay. Explain how it will be refunded on their departure, assuming the property is in good shape at the lease end date, outside of reasonable wear and tear.
- Late fees. In the event that rent is paid late, state what fees will be charged and what the grounds for eviction would be regarding missed payments.
- Policies. List any rules you or the property owner will enforce for smoking, pets, parking, or having guests over. In this section you can also identify which areas of the property the subtenant has access to, and which areas of the property are off-limits.
- Landlord's consent. Your landlord needs to sign off on your sublease agreement.
- Utilities. State which utility costs the sublessee will be responsible for.
- Furnishings. List any furnishings included in the room or property being sublet.
- Paint disclosure. If your rental unit was built before 1978, U.S. federal law mandates that you must disclose any known information about lead-based paint being used in the property. There may be other disclosures required by your local governing laws. Reference your master lease to double-check, or do some background research of your own. the work to be completed
Sublease agreement FAQs.
Is there a risk of subleasing my rental?
Subleasing carries several risks for the original tenant, with financial liability being the most significant. Even after subleasing, the original tenant remains legally bound by the terms of the lease, including the obligation to pay rent.
If the subtenant fails to pay rent on time or at all, the original tenant is responsible for covering the unpaid amount. Additionally, the original tenant is liable for any damages caused by the subtenant.
Legal complications are another concern, as many leases require the landlord’s explicit approval for subleasing. Failing to secure this approval could result in serious consequences, such as eviction.
Do I Need My Landlord’s Permission to Sublease?
In most cases, tenants must obtain written permission from their landlord to sublease. Lease agreements often include a clause specifying the conditions under which subleasing is permitted. If you’re unsure, consult your landlord for clarification.
How Can I Find a Suitable Subtenant?
Subtenants are often chosen from among family or friends, but traditional methods, such as advertising the property and conducting interviews, can also be effective. The selection process should include background and credit checks, as well as references, to ensure the subtenant is reliable, financially stable, and able to comply with the sublease terms.
Who Is Responsible for Rent in a Sublease?
The subtenant pays rent to the original tenant, who remains responsible for paying rent to the landlord. If the subtenant fails to pay, the original tenant must still meet their rent obligations to the landlord.
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How to write a simple sublease rental agreement.
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A graphic of signing a sublease agreement on a laptop using Acrobat Sign
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