If one of your renters wishes to leave your property before the end of their lease period, they may ask for your permission to create a sublease agreement. A sublet contract can protect you, your renter, and their prospective subtenant. Understanding sublease agreement forms is an important part of your role as a landlord.
What is a sublease agreement?
A sublease agreement is an agreement between a renter (known as the sublessor) and another person who wants to rent that same space (known as the sublessee or subtenant). The original renter should obtain permission from you, the landlord, before proceeding with a sublease agreement.
Renters typically choose to create a sublease agreement when they have time remaining on their rental agreement and want to vacate their unit earlier than the end of their lease. Renters may also wish to sublet their apartment or house if they will be away for a long period but plan to return before the conclusion of the lease agreement.
Once a renter creates a sublease agreement with a subtenant, the subtenant must follow the terms and conditions of the original rental agreement. The original renter will still remain responsible for paying rent, any damages, and any breach of that initial agreement.
That means that if the subtenant damages your property or doesn’t pay rent, the original renter is liable to pay you. Likewise, if the subtenant breaks the sublease agreement in any other way, the original renter is responsible for fixing the situation.
Is subletting legal?
While renters must get permission from their landlords and follow any state and local subletting laws, it is generally legal to sublease a property. However, laws vary locally and by state. In some locations, renters can sublet property even if the lease explicitly forbids it, while other locations give the landlord the ability to evict or sue a subtenant if they did not get permission to sublet the property. You (and your renters) should always check laws in your area to ensure you’re in compliance.
Generally, a renter can sublet any type of property, including:
- Apartments
- Basements
- Condos
- Duplexes
- Houses
- Mobile homes
- Rooms
- Townhouses
How to Write a Sublease Contract
A standard sublet agreement typically includes the following components:
- Description of the premises: Include the address of the residence and a description of the property. This section should specify exactly what the subtenant will rent, for example, the entire unit or just a single room in the case of a room sublet agreement.
- Names of original renter(s) and subtenant(s): List the full name and address of the original tenant and the person taking over the lease.
- Term: State when the sublease agreement will begin and end. Keep in mind that the subtenant doesn’t need to sublet the property for the same time period as the original lease. A renter and subtenant can agree on a month-to-month or set term sublease.
- Details of original lease: Describe details of the original rental agreement, including the date of the lease and the landlord. A subtenant must understand all provisions of the original agreement. For instance, the agreement should state if smoking is prohibited in the rental unit or if pets are allowed. A sublease agreement could also simply state that subtenants must comply with the original lease.
- Rent information: State the amount the subtenant must pay each month to the original renter. Unless otherwise stated, a subtenant should pay the original renter, and the original renter will then pay rent to the landlord. This section can also cover details about late fees a subtenant must pay if they do not pay rent on time.
- Landlord approval: If an original lease requires the landlord’s approval to sublet, the renter must get your written approval and should include this in the sublease agreement.
- Utilities: The sublease agreement should state if utilities are included or if the subtenant will pay for utilities separately.
- Furnishings: Include whether the premises are furnished.
- Alternations: Usually, subtenants cannot make alterations to the property; the agreement should state that explicitly.
- Sublease security deposit: The sublease agreement should state how much the subtenant must pay as a security deposit against potential damages.
State laws regulate the same maximum rent and security deposits for subleases as they do for standard lease agreements. Check state landlord-tenant laws where you live to make sure the costs included in the sublease agreement are legally valid.
Sublease Agreement Template for Landlords
You can use this free sublease agreement as a basis for a sublease agreement you create:
This Sublease Agreement is made between [NAME], the “Sublessor,” and [NAME], the “Sublessee,” referred to as the “Parties.”
The Parties agree that the Sublessee shall lease from the Sublessor a [describe full unit, one room, etc.] located at [ADDRESS] following these terms:
- LEASE TERM: [List period, start, and end date].
- RENT: [List total monthly rent, when rent payable, and how rent will be paid (i.e., directly to the Sublessor)].
- SECURITY DEPOSIT: [List amount paid to Sublessor and any applicable state/local restrictions/regulations].
- TERMINATION NOTICE: Sublessee will provide Sublessor with [period of time] written notice prior to termination of tenancy stating whether Sublessee wishes to terminate or renew. Unless Sublessee and Sublessor sign another written agreement for an additional tenancy period, Sublessee’s tenancy will end on [DATE].
- SUBLESSEE INTEREST IN THE PROPERTY: [Describe number of renters, whether Sublessee will share a bedroom, whether Sublessee shares common spaces equally with other renters, etc.]
- OVERNIGHT GUESTS: Sublessee does/does not need to obtain Sublessor permission prior to stay of overnight guests.
- UTILITY/TELEPHONE CHARGES: Sublessee agrees to pay [state details].
- POLICIES: [Describe policies regarding smoking, alcohol, pets, parking, etc.]
- MASTER LEASE: In addition to provision of Sublease Agreement, Sublessee agrees to be bound by conditions included in Master Lease (attached) between Sublessor and Landlord [YOUR NAME].
- CONDITION OF THE PROPERTY: Sublessee certifies that they have examined the Property and that it is in good condition [include a space to write anything not in good condition]. Upon termination of Sublease Agreement, Sublessee will leave Property in its original good condition besides regular wear and tear. Sublessee will be responsible for repair of damage resulting from neglect or action of Sublessee or invitees of Sublessee.
[NAME/DATE/SIGNATURE OF SUBLESSOR]
[NAME/DATE/SIGNATURE OF SUBLESSEE]
Using a sublet rental agreement template can help take the stress out of crafting a sublease agreement that works for you as well as your renter and their subtenant.
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