Are you looking to sublease your property? For a sublease to be legally binding, you need to have it in writing. The document detailing this is known as a sublease agreement. It is essentially a lease within a lease and can apply to rent out apartments, homes, or single rooms in a rental property. On this page, you can find a free sublease agreement template to download and use. We also have plenty of other information on the subleasing process you’re bound to find useful.
A sublease agreement is a legally binding contract between a tenant and another party. This second party is known as the subtenant since they will be renting all or part of the property from the existing tenant. The rental agent or building manager must approve all sublease agreements because they are the property owner or its representative. It is illegal for the tenant to sublease the rental property without permission. Moreover, the term of the sublease can never extend past the termination date on the original lease.
There are generally two situations in which a sublease contract might be necessary:
1) The existing tenant wants to terminate the lease, but the building manager does not agree to terminate the original lease before the end date. The tenant may therefore wish to sublease the property until the lease ends.
2) The original tenant wants to remain living inside the rental property but doesn’t use all the available space. In these situations, the tenant will sublease a room in the property to the new tenant rather than the entire rental property.
Using our sublease contract template is one step in subletting your house, apartment, or room in your home. However, there is a bit more to subleasing than simply drafting up a new rental contract. Below are the steps you have to go through.
For the sublease agreement to be legally valid, it must receive the landlord’s approval. Therefore, your first step is to receive permission from them. Many landlords are happy to sublease the property or a room within it. As long as they’re receiving monthly income and someone is paying rent, most won’t have an issue with the terms of the agreement.
However, your landlord has the legal right to refuse. In these cases, the original tenant must keep paying rent until the end of the term on the original lease agreement. There is also the option for the landlord to relet the property to a new tenant instead, keeping the old tenant out of the equation.
You’ll then want to gather all property information that you can so you can create a property listing. Examples of property information you need to know include:
· Monthly Rent: You need to decide how much you will be renting the property or room for. If subleasing the entire home to the new tenant, this will likely be the same as you are paying now. If renting a single room in the property, research into current house prices in your local area is a must so the room can be priced accordingly.
· Property Images: Having images on your listing will attract more interest and increase the chances of forming a sublease agreement quickly. The tenant should aim for at least two images per room. When it’s just a single room, photographs of the communal areas are also a must.
· General Information: The tenant should gather as much general property information as possible to give to the prospective subtenant. Examples include information on the surrounding area, what utility bills typically amount to, and any other agreements that might need to be detailed in the new lease.
Once you’ve gathered all the property information, the tenant can list the property. Using online sites such as Airbnb or Craigslist tends to be your best bet. Each site will have its own processes for listing properties online, along with listing fees, so choose one that works best for you.
Once the property listing has been live for a while, the tenant can expect to receive interest from prospective subtenants. As a sublease agreement, it is the existing tenant’s job to put all the work into finding an appropriate replacement. It is up to the tenant to respond to these inquiries and conduct property viewings at a time that works around their schedule.
The tenant must check out any potential applicants who show interest in subleasing the property. A thorough background check and credit check are essential. Despite the sublease contract, the original lease agreement still stands. If the tenant is late with rent payments, this could mean the old tenant can’t keep up with the payments. Likewise, damage to the property will still fall on the original tenant. Therefore, it is in the best interests of everyone to carefully vet all applicants.
Finally, all parties can sign the sublease form to make the agreement legally binding. The landlord or property manager, the original tenant, and the subtenant will all need to meet together to do this. Depending on your local state laws, sometimes you also need to attach a disclosure form to the sublease agreement. It is worthwhile asking a law firm near you to provide legal advice on whether or not this is necessary.
Alongside completing the sublease agreement forms, the subtenant will also have to make the following payments before the original tenant hands over the keys:
Our free sublease agreement template (Word and PDF versions are both available) is the perfect example of a sublease agreement. As you can see, this document is like a normal rental contract. It includes information such as the lease term, property that will be subleasing, the value of rent and security deposits, plus a list of any permitted alterations to the property. You can use our sublease contract template and fill in the blanks, or use it as a guide to writing your own.
Link to download will appear there soon
Our sublease contract template is easy to follow. However, if you’re struggling with the document, here is a look at exactly what information you need to include in the different sections.
The first section of a sublease agreement contains details about the property. This includes factual information such as the property address, plus a description of the property as a whole. This section also details precisely what the subtenant will be renting, the entire property or a single room or rooms within it.
Next comes the details of the current tenant and the new subtenant. This is important since it shows who the contractual parties are. Both the full legal names and current addresses of the tenant and subtenant need to be inserted in the blanks.
The term of the sublease refers to how long the sublease agreement is for. In other words, how long the subtenant is legally bound to pay the agreed rent on the property. In some cases, this might be the same length that is left on the original lease. In other cases, this might be as little as a month such as when the original tenant is away on holiday. You need to detail the term in months plus the start and end date of the contract.
By signing the sublease agreement forms, the subtenant is taking on the terms agreed between the property manager and tenant in the original lease agreement. As such, describe in full the original lease’s details and a statement confirming that the subtenant will comply with these provisions. Examples could include accepted property alterations, rules on pets, and payments of resident income tax or other fees.
Last, you need to specify the rent payment the subtenant owes each month. This is often the same as the rent payments on the original lease the old tenant signed. If the subtenant fails to pay the agreed rent or causes damage to the property, the original tenant must cover this. In these instances, the sublease agreement is broken, and the tenant must remedy the situation with the manager directly.
Sublease Agreement FAQs
A sublease is when the original tenant rents out the rental property or part of the property to a new tenant. Comparatively, a sublet is when the new tenant takes over the lease directly with the landlord.
Yes, subletting is legal as long as the tenant obtains direct permission from the landlord to rent out the property, and all parties sign a subletting agreement form. Subletting without the landlord’s approval could result in legal issues.
Yes, sublease agreements are legally binding. The contract is between the original tenant and the new tenant (also known as the subtenant). However, they are only valid if signed by all parties, including the landlord.
Yes, you should always request a written sublease agreement. Without written consent from the tenant, subtenant, and landlord, the sublease contract is not legally binding.
You can sublet any type of residential property you are currently renting. This includes flats, apartments, houses, bungalows, and cottages.
You can find all the steps on subleasing an apartment in this article. First, you need to gain the landlord’s consent before gathering all property information and finding an appropriate applicant to sign the sublease agreement template.