Last Updated January 11, 2024
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What is a Sublease Agreement?
A Sublease Agreement is a contract that outlines the terms of a sublease between an existing tenant and a subtenant.
Subleasing, also known as subletting, means that the existing tenant re-rents some or all of their rental property to the subtenant for a portion or the remainder of the original lease. If tenants need to relocate permanently or temporarily before their lease is up, subleasing can help them regain some or all of their otherwise lost rent.
It is important to note that during a sublease, the subtenant enters an agreement with the existing tenant, not the landlord or owner of the rental property. In addition, note that subleasing differs from assigning a lease. Assigning a lease means someone takes over a lease from an existing tenant. The existing tenant becomes no longer responsible to the landlord.
A Sublease Agreement is also known as a:
- Sublet agreement
- Sublease contract
- Sublet lease agreement
- Sublease rental agreement
- Sublet contract
Our Sublease Agreement template is for residential properties, such as houses and apartments. If you need to sublease a commercial space, use our Commercial Sublease Agreement.
Who are the parties to a Sublease Agreement?
The parties in a Residential Sublease Agreement are:
- The sublandlord or sublessor (original tenant), who entered into a lease with the landlord, and is now subleasing all or part of the rental property to a subtenant.
- The subtenant or sublessee, who enters into a lease with the sublandlord to temporarily rent all or part of the property.
Although a landlord owns the residential rental property and is renting to the original tenant, the contractual obligations in a Sublease Agreement only exist between sublandlord and subtenant.
How does a Sublease Agreement work?
First off, to sublease a rental property, a tenant has to check the terms of their Residential Lease Agreement to see if subleases are permitted under their lease terms. States have varying laws regarding subletting which determine whether a landlord has the right to disallow a tenant from subletting.
If a lease prohibits subleasing, the tenant may ask the landlord to consider amending the lease so they can sublease their rental.
Even when subleases are allowed, most tenants must get their landlord’s consent before letting a subtenant move in. If the landlord has not yet given their written approval, the Sublease Agreement can include a section where the landlord can acknowledge that they allow the sublease.
Tenants have to understand that a Sublease Agreement does not invalidate the terms of the original Residential Lease Agreement. In other words, the original tenant retains their obligations to the landlord and is liable for any damage or lease violations that the subtenant may cause. In addition, the sublease cannot exceed the length of time that the original tenant agreed to rent the property for, as indicated in the original lease.
Both the subtenant and sublandlord should sign the sublease and keep a copy for their records. In addition, the sublandlord should either attach a copy of the original lease to the Sublease Agreement or deliver it directly to the subtenant.
How do I write a Sublease Agreement?
To create a Sublease Agreement for a residential rental property, ensure it includes the following information:
- The rental property's address
- The sublandlord’s and subtenant’s names and addresses
- The landlord’s name
- The date the original lease was signed
In addition, a Sublease Agreement should clarify the following items:
- Whether the entire premises or a portion of the premises will be subleased
- Whether the sublease term will be fixed or renew automatically
- Whether the subtenant will make payments to the sublandlord or the original landlord
- Whether the subtenant has all the same rent and utility obligations as the sublandlord does under the original lease
- Whether a damage deposit is required
- Whether the subtenant has to get renters' insurance
- Whether pets, smoking, or vaping are allowed within the property
- Whether the subtenant can make alterations or improvements to the property
- Whether the sublandlord will perform a Residential Rental Inspection Report and, if so, how many days the sublandlord has to provide the inspection form to the subtenant
Why should I use a Sublease Agreement?
Whether you are the original tenant or the subtenant, you should use a Sublease Agreement for the following reasons:
- It outlines the terms of the sublease
- It ensures that each party understands their obligations
- It can prevent future misunderstandings over payment details, maintenance duties, and liability for damages
Depending on the terms of the original lease and the jurisdiction, using a Sublease Agreement could also be legally required.
Can I use a Sublease Agreement if I have a roommate?
Nothing about having a roommate inherently prevents subleasing, but you might need their consent in some scenarios.
If your landlord is leasing out rooms individually, you probably do not need their consent. Even so, it is important to consider your roommate’s comfort level. In the spirit of being considerate, think about having your roommate approve the subtenant moving in. If they feel part of the decision, they may be more open to the sublease arrangement.
If you and your roommate are co-tenants, signed to the same Lease Agreement, you may need their consent. A Lease Assignment or Amendment might be easier in a scenario where there are a bunch of co-tenants, rather than trying to set up a sublease.
You and your roommate can also add a clause to your Roommate Agreement outlining a process for if one or both of you wants to sublet your rooms.
Can I transfer a lease with a Sublease Agreement?
No, a Sublease Agreement cannot transfer a lease to a new tenant.
To transfer a lease and assign your obligations to another person, you need a Lease Assignment. In this case, a new tenant takes your place in the landlord-tenant relationship.
Note that in many lease agreements, you could still be liable for rent or damages even after assigning your lease to someone else. You may need your landlord’s consent to assign your lease to someone else.
In contrast, a sublease is when your original lease continues between you and your landlord but you give another person the right to occupy the rental property. During a sublease, you are still responsible for the rent and condition of the property.
