Sublease Agreements

Create a high quality document online now!

A sublease agreement is a document between a tenant, who has a lease with a landlord, and a subtenant that agrees to rent the same property from the tenant. The term of a sublease cannot go beyond the end date of the original lease. A tenant is required to obtain consent from the landlord if subletting is prohibited.

A Sublease Occurs When

(1) A tenant wants to terminate their lease early but is rejected by the landlord, and instead rents to a subtenant until the expiration of the lease; or

(2) A tenant wants to remain on the property while renting a room to a subtenant.

By Type (2)


Standard Sublease Agreement – For all residential uses.

Download: Adobe PDF, MS Word, OpenDocument

 

 

 


College / University Sublease Agreement – For residences within dormitories or off-campus housing when renting for the summer.

Download: Adobe PDF

 

 

By State

Table of Contents

What is a Sublease?

A sublease is a document that allows a tenant, or “sublessor”, to re-rent their place to a subtenant, or “sublessee”. This requires the consent of the landlord due to subletting being prohibited in the lease between the tenant and landlord, the “original” or “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. When finding a new tenant to move-in to a precarious situation, it may require a discount in rent as well as other concessions by the sublessor.

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 ‘sublessee’. The market rent can be determined by taking into consideration what others are paying in the area via Craigslist, Apartments.com, and Zillow. 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 – Subtenant 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 sublessees 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 SubLessee

Before accepting a lease, it is best for the tenant to accept the credentials of the sublessee 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 the sublessee qualifies then a sublease agreement should be executed.

NOTICE TO THE SUBLESSOR: The sublessee will now be their sole 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 one (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 sublessor 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 sublessor and the landlord.

How to Write a Sublease

Download: Adobe PDF, MS Word, OpenDocument

I. The Parties

(1) Document Date. The calendar date that Sublessor and Sublessee agree to be associated with this document should be reported.

(2) Sublessor(s). The Tenant who holds a formal lease with the Property Manager or Property Owner should be attached to the Sublessor role in this agreement. This is the Party who, according to the Landlord and the master lease, has the legal right to reside in the premises in exchange for rent.

(3) Sublessee(s). The New Tenant who does not hold a current and legal lease with the Property Owner or Landlord but shall enter the living arrangement with the Sublessor through this lease must be identified by name as the Sublessee (or Subtenant).

(4) Property Location. The physical address of the property that the Sublessor shall rent to the Sublessee must be defined.

II. Term

(5) Tenancy Start Date. The first calendar date that the Sublessee may reside on the property in exchange for the rent he or she pays to the Sublessor should be recorded.

(6) Termination Date. This lease should be set to naturally expire upon a  date that is prior to the termination date held between the Sublessor and Property Owner. Document when this sublease must expire requiring either a new agreement or requiring the Sublessee to move out.

III. Rent

(7) Sublease Rent Amount. The rent that will be required of the Sublessee to enter and maintain this agreement should be agreed to then reported.

(8) Monthly Due Date. The two-digit calendar day of the month when the Sublessor must be in receipt of the Sublessee’s rent payment should be established in this agreement.

(9) Payment Venue. The agreed-upon method of payment between the Sublessor and Sublessee is required for this discussion. Thus, document if the Sublessee’s rent payment should be submitted. For instance, the Sublessee can be required to submit rent with a check-in person or by mail or electronically (i.e. an app or wire transfer). It should be mentioned that if cash is used then it is strongly recommended that a receipt system is also required so that a paper trail of rent payments can be followed for the duration of this sublease.

IV. Security Deposit

(10) Security Deposit Requirement. The amount of money the Sublessor requires as a security deposit should be defined. This sum will be held while this sublease is active as insurance that any damages incurred by the Sublessee can be paid (using the deposited security). Present the required security deposit amount.

(11) Deposit Return Deadline. If the sublease has run its full course with no incidents of damage requiring a Sublessee payment as a cure, the security deposit the Sublessee submitted to the Sublessor will have to be returned within a time period often set by the state. This lease can set the return date for the security deposit to the maximum number of days the state allows or to a date that is prior to that. Determine the date the Sublessor will return any security deposit amount due to the Sublessee by documenting the number of days after the sublease has terminated as the longest period of time the Sublessee is obligated to wait for its return.

V. Utilities

(12) Sublessor Utility Obligation(s). The utilities and services the Sublessor shall maintain and pay for during the sublease should be listed. This means that any utility or service not documented as the Sublessor’s responsibility will be up to the Sublessee to obtain and manage.

VI. Move-In Checklist

(13) Proof Of Property Condition. Oftentimes, both Parties will agree to a move-in checklist. This is a separate document that reports the result of a visual inspection of the rented property performed by both Sublessor and Sublessee. This agreement will need to establish whether a move-in checklist must be completed at the time of the Sublessee’s move-in. Select the appropriate checkbox statement to solidify this status.

VII. Lead-Based Paint

(14) Disclosure Status Requirement. Any lease agreement for a property built before the year 1978 will need to include a Lead-Based Paint Disclosure. This sublease is no exception. Thus, select the checkbox that best indicates if a Lead-Based Paint Disclosure will or will not be attached to this sublease.

VIII. Smoking Policy

(15) Smoking On Property. If smoking is allowed on the premises then indicate this by selecting the first statement and recording the areas where the Sublessee is allowed to smoke or choose the second statement to solidify that smoking will not be allowed on the premises of common areas. Select the appropriate checkbox but make sure your choice is compliant with the state and county laws where the property is located as well as the terms of the master lease held between the Sublessor and the Landlord or Property Owner.

IX. Landlord’s Consent

(16) Landlord Interest. As mentioned earlier, the Sublessee will not hold a legal agreement to live on the premises with the Property Owner or Landlord. The Sublessor’s master lease (held with the Property Owner or Landlord) will usually state if subletting is allowed or not. The ninth article shall handle this by requiring you to define if the master lease allows the Sublessor to sublet or sublease the premises, does not allow subletting but Landlord permission has been granted or is not allowed but the intention to ask the Landlord to approve this sublease when it is completed will be carried out. Produce this definition by selecting one of the checkbox definitions presented.

XVIII. Additional Terms And Conditions

(17) Sublessor And Sublessee Provisions. If there are other conditions, or requirements the Sublessor and Sublessee have agreed should be included in this sublease, then they must be documented using the space provided in the eighteenth article. This area can be used to present items such as house rules, can obligate one Party to obtain a specific utility or service, or set up a ratio of how much should be paid by each Party for shared household expenses. Be advised that any provisions agreed to must be considered legal in the state where the property is located.

XX. Entire Agreement

(18) Sublessor Signature. Once the sublease has been supplied with the requested definitions and both parties have agreed to enter this agreement, the Sublessor will need to sign his or her name.

(19) Sublessor Printed Name And Signature Date.

(20) Sublessee Signature. The Sublessee can only participate in this agreement after he or she signs it, dates the signature he or she provided, then documents his or her printed name. Both these signatures will be considered binding in a contractual sense (only) between the Sublessee and Sublessor.

Original Lease Attachment

(21) Attachment Verification. If the original lease (held between the Sublessor and the Property Owner or Property Landlord) has been attached for a review then, both the Sublessor and Sublessee should supply their initials to solidify that it has been presented with this sublease to all signature parties.

Landlord Consent

(22) Landlord Signature. To show consent, the Landlord should be asked to sign his or her name to the completed document as well as dispense the current date at the time of signing. It should be mentioned this does not bind the Landlord to the Sublessee in any true sense regarding this property. This signature only displays consent.

(23) Landlord Printed Name And Date Of Signature.