Sublease Agreement Template

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A sublease agreement is between a tenant, also known as the “sublessor”, and a person seeking to rent the same space, the “sublessee”. In most cases, a sublease occurs when a tenant has time left on their rental agreement with the landlord and would like to vacate earlier than the end date. Therefore, with the landlord’s consent, they may rent the space to someone else and play a middle-person while still paying rent to the landlord every month.

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Table of Contents

What is a Sublease?

A sublease is a document that allows a tenant to re-rent their place to someone else known as a ‘sublessee’. This requires the consent of the landlord due to subletting being prohibited in the lease between the tenant and landlord (‘master lease’). A sublease cannot go further than the end date of the master lease unless approved by the landlord.

 

Landlord’s Consent


Landlord Consent Form – Allows a tenant to obtain permission from the landlord to sublet a property.

Download: Adobe PDF, MS Word, OpenDocument

 

 


How to Sublet

If a lease is in place for a fixed term and the landlord is unwilling to allow a release then the only option is to find someone else that will take over the space. Although, to find a new tenant to move-in to a precarious situation, it may require a discount in rent as well as other concessions from the original tenant.

Step 1 – Find the Original Lease

The original lease is needed to be found in order to view the tenant’s rights in regard to subletting the Premises. Most standard leases do not allow the tenant to sublease the property and therefore the tenant may be required to obtain a Landlord Consent Form in order to forgo what was originally agreed to and attach as an addendum.

Once consent has been given the tenant may begin marketing the property for lease.

Step 2 – Determine the Monthly Rent

This involves the tenant figuring out how much to charge the new tenant, or “sub-lessee”. The market rent can be determined by taking into consideration what others are paying in the area via craigslist.com, apartments.com, and zillow.com. After viewing like-properties the tenant may be able to get an idea of what to make for the asking price.

Step 3 – List the Property

In order to list the property, the best website depends on the area where the property is located. As a general recommendation the most popular sublet websites are the following:

  1. Sublet.com – 90-day access for $19.95 (in most areas).
  2. Craigslist (sublets / temporary) – Flat fee ($) per post. Fee depends on location.
  3. Flip.lease – Sub-tenant pays 5% of the monthly amount.
  4. Airbnb.com – Determined on the location and amount.

It’s recommended to use the same property photos and details to create listings on all the above-listed websites.

Step 4 – Show the Property

While accepting the incoming calls on the property is it most important for the tenant will need to be as available as possible. Especially if the property has been priced below-market in order to get the property rented as quickly as possible.

In order to save time, make sure to vet the prospective sub-lessees over the phone to make sure the following they:

  • are looking to move-in immediately;
  • are currently employed;
  • can afford the monthly asking price (rent); and
  • don’t have pets (if there’s a pet policy).

After pre-approving the individual(s) on the phone it is now time to create a time to show the property to see if it matches their needs.

Step 5 – Screen the Sub-Lessee

Before accepting a lease, it is best for the tenant to accept the credentials of the sub-lessee through a Rental Application, collect a fee (usually between $25 to $50), and see if they qualify. To best screen the applicant the following should be conducted:

  • Credit and Background Check – Use MySmartMove.com (TransUnion);
  • Income / Employment Verification – Obtain an Income Verification Form from their employer; and
  • Landlord Reference – Contact their most recent landlord to hear about their character and if they paid rent on-time.

Step 6 – Sign an Agreement

If sub-lessee qualifies then a sublease agreement should be executed. As notice to the original tenant, the sub-lessee will now be their responsibility meaning any late rent, property damage, or eviction will be their liability. Therefore, it’s important to have a security deposit received at the time of signing that is at least equivalent to 1-month’s rent (See All States’ Maximum Limits).

  • Expiration / End Date – Make sure the end date is not further than that of the original lease. If not, the sublease could be seen as non-binding between the parties.

Step 7 – Addendums and Disclosures

The following should be added to the sublease agreement:

  • Disclosures – Most States have required disclosures that inform any new tenant of things to look for in a new lease. Most likely the original tenant will have the same documents attached in their original lease with the landlord.
  • Lead-Based Paint Disclosure – Only if the property was built before 1978.
  • Original Lease – A copy of the original or master lease between the original tenant and the landlord.

How to Write a Sublease

Download: Adobe PDF, MS Word, OpenDocument

Step 1 – Acquire The Sublease Agreement Template From This Page

The Sublease Agreement Template on this page can be obtained using the buttons found in the sample image’s caption area or the links on display in this section. Using these items allow a direct download of the “Adobe PDF,” “Microsoft Word,” or “Open Document” file version of the displayed Sublease Agreement Template.

Step 2 – Introduce This Template As The Sublease Agreement

Once acquired, open then review the form. The first task set here will be to complete the statement in the first article (labeled “I. The Parties”). Identify this agreement by attaching a specific date to this document and the Parties involved. Furnish the month and day of this date on the first blank line and the appropriate year on the second blank line. 

 

Step 3 – Attach The Sublessor Behind This Agreement

The Tenant holding the original lease and retaining the right to occupy the premises under the terms it contains must be identified as the same Party who will rent the concerned premises to a Third Party. List the Landlord’s Tenant as the Sublessor on the blank line labeled “Sublessor(s).” This line must be populated with the full name of every Tenant on the original lease.

 

Step 4 – Assign The Sublessor’s Intended Tenant As The Sublessee

The Party who will pay the Sublessor rent to occupy the premises should be identified as the Sublessee. It should be noted that the Sublessee will not hold a formal agreement with the Landlord or Owner of the premises but must remain in compliance with the lease held between the Property Landlord/Owner and Sublessor/Tenant named above. 

 

Step 5 – Identify The Concerned Sublet Property

Now that both the Sublessor and the Sublessee have been identified, the premises should be defined. This will be handled in the statement closing this article that begins with the words “The Sublessor Agrees To Sublet…” Locate the empty line following the phrase “…Located At” then produce the full address where the premises can be accessed and entered physically on this line. 

 

Step 6 – Address When The Sublet Will Occur

The second article in this template bears the title “II. Term” and intends to deliver a discussion on the first and last calendar date when the Sublessor and Sublessee have determined their agreement to be in effect. To this end, seek out the first two blank lines in this article then enter the first calendar date (month/day/year) when the Sublessor will accept rent from the Sublessee in exchange for maintaining a residential sublet.  The empty lines that follow the language “…Ending On The” must display the last or final month, two-digit calendar day, and year the concerned Sublessee is permitted to occupy the concerned premises.

 

Step 7 – Document The Sublet Rent Amount

A crucial item that must be solidified in this agreement is the exact amount of money that will be expected as rent from the Sublessor named above. In the third article of this agreement, “III. Rent,” the opportunity to present the rent is available. Seek out the blank line between the term “…This Sublease Shall Be $” and the phrase “Payable On…” then enter the rent amount the Sublessee must pay the Sublessor every month in exchange for occupying the premises defined in the first article. 

 

Step 8 – Define When The Sublet Rent Is Due

The second blank line in “III. Rent” requests that the day of the month when the Sublessee must pay the monthly rent should be reported for display. Locate the phrase “Of Each Month” then supply the two-digit calendar day (i.e. 1-30) of the month when the Sublessor must receive the Sublessee’s rent payment. 

 

Step 9 – Provide Appropriate Payment Instructions

The third article will also seek specific instructions on how the Sublessee must submit the rent payment. The blank line placed after the words “…The Following Manner” in “III. Rent” will accept instructions such as “By Check,” “Automatic Wire Transfer, “By Mail,” “In Person,” or all of the above. Make sure the statement produced in this area gives explicit instruction on how the Sublessee must pay his or her rent. 

 

Step 10 – Present The Required Security

An important consideration that should be discussed is the amount of money the Sublessor intends to receive as security from the Sublessee. This dollar amount will only be held by the Sublessor as a sort of insurance that any Sublessee-caused damage to the premises or unreliability in paying rent can still be paid for by the Sublessee whether he or she is available or willing to rectify any such situation. The security the Sublessee surrenders to the Sublessor will be returned if no such damages or rent defaults occur. Enter this dollar amount on the first blank space in the fourth article or section (titled “IV. Security Deposit”). 

 

Step 11 – Furnish The Security Return Deadline

As mentioned earlier, the Sublessee can anticipate the surrendered security deposit to be returned provided he or she has adhered to the sublease agreement by not causing any damages (physical or otherwise) to the property. This expectation should be satisfied with a return of the full security deposit amount or a notification that part or all of the security amount was used to cover damages caused by the Sublessee along with the remaining security (if any) within a matter of days after the formal termination of the sublease. This number of days must be defined in the fourth section as well (“IV. Security Deposit”). Place it on the empty line following the wording “Sent To The Sublessee Within” and the term “Days After The…”  This agreement remains accountable to the master lease and the governing law at all times therefore, make sure the number of days entered here satisfies requirements placed by such a consideration.

 

Step 14 – Dispense The Lead-Based Paint Status Of The Sublet   Indicate Whether A Move-In Checklist Is Required

This agreement will also need to present some basic facts regarding the premises that do not necessarily require a direct entry. Therefore, several convenient multiple-choice areas will be used to define a few provisions. Begin with the sixth article, “VI. Move-In Checklist,” where one of two checkbox statements must be chosen. If a “Move-In Checklist” must be completed to document any defects or damage present on the property on the first day of the Sublessee’s lease term, then select the checkbox corresponding to the words “Shall Be Required.”   If the Sublessee and Sublessor have agreed that a “Move-In Checklist” need not be completed on the first day of the sublease term, then select the checkbox “Shall Not Be Required.” It should be noted this is generally considered unwise since such a checklist serves to aid in protecting either Party from any misunderstandings or chicanery from the other one.

 

Step 13 – Dispense The Lead-Based Paint Status Of The Sublet  

Article “VII. Lead-Based Paint” intends to solidify when the premises was constructed. If the property the sublet is located on was constructed before 1978 then mark the first checkbox statement here and make sure to include the required “Lead-Based Paint Disclosure” to the sublease. If the concerned sublet property was constructed after the year 1978 then, mark the second checkbox. This will mean that a Lead-Based Disclosure will not need to be attached to the sublease.

 

Step 15 – Report On The Lease’s Smoking Policy

The next section, labeled as “VIII> Smoking Policy,” also seeks its definition in the form of one of two checkbox statements. If the Sublessee will be allowed to smoke on the property in designated areas, then mark the “Is Allowed” checkbox and document the property areas where the Sublessee will be allowed to smoke on the blank line provided.  If the Sublessee will not be allowed to smoke on the property, then mark the checkbox labeled “Is Not Allowed” to solidify this.   

 

Step 16 – Verify The Landlord’s Approval Level For This Sublet

As discussed, the Landlord can still approve the sublet even if the topic is not discussed in the original lease held by the Sublessor. If the Landlord has already granted approval through the previous agreement for the sublet to proceed then mark the checkbox statement labeled “Allows” in “IX. Landlord’s Consent.”   If the Landlord/Sublessor agreement does not allow for a sublet but the Landlord has already approved this arrangement, then select the second checkbox from the choices presented in “IX. Landlord’s Consent.”   There may be no real indication from the Landlord as to whether this sublet is allowed or has allowed the sublet but must still approve the Sublessee then mark the third choice in “Does Not Allow Subletting And The Landlord Will Be Asked. 

 

Step 17 – Show The Jurisdiction Governing The Master lease and Sublease

The next section requesting input is “XVII. Governing Law.” The statement presented here will lead to a blank line that requires the name of the state whose laws may impose judgments enforcing or voiding this sublet agreement.  

 

Step 18 – Deliver Additional Dialogue Concerning The Sublet If Needed

Naturally, some arrangements between a Sublessor and Sublessee may have nuances or situation-specific provisions that would not be covered by a template. If this sublet intends to hold these Parties to any additional terms, then report them directly to the contents of this agreement on the blank lines in the section titled “XVIII. Additional Terms And Conditions.”

 

Step 19 – Obtain A Formal Execution From The Sublessor

The Sublessor who was named in the first article must review this completed agreement then refer to the final article “XX. Entire Agreement.” If the Sublessor agrees to abide by the contents of this paperwork, he or she will need to sign the blank labeled “Sublessor’s Signature” then report the current month, day, and year on the line labeled “Date.”  In addition to the provided signature, the Sublessor should print his or her name on the next line down (“Print Name”) to support his or her identity as this agreement’s Sublessor.   

 

Step 20 – Gain The Sublessee’s Signature Acknowledgment

The Sublessee is also obligated to engage in a review of the completed agreement then participate in its formal execution. The “Sublessee’s Signature” line and “Date” line following the text and “XX. Entire Agreement” must be signed and dated (respectively) by the Sublessee. Once the Sublessee has agreed to obey this agreement by signing it, it will be time to attend to the “Print Name” line with the printed version of his or her name can be displayed with the signature.       

 

Step 21 – Request The Landlord Signature

The Landlord must approve this sublease. To do so, present this paperwork to the Property Landlord/Owner then direct his or her attention to the “Landlord’s Consent” section on the final page. If the Property Owner or Landlord responsible for this property approves of this sublease, then he or she must sign the “Landlord’s Signature” line and document the “Date” of his or her signature. After signing the “Landlord’s Signature” line and attaching his or her signature “Date,” the Property Owner or Landlord should also furnish the “Print Name” line with his or her name.

 

Step 22 – Approve The Lease Governing The Sublease

If the original lease between the Property Owner or Landlord and Sublessor has been attached to this document, then every signature party must review it and initial one of the empty lines following the label “Original Lease Attached (Initial).” 


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