A sublease agreement is a legal agreement by which someone who is renting a residential property is allowed to rent it to someone else for a period of time. If a tenant finds that he or she is unable to continue meeting the terms of the lease, or if they want to find a roommate to share expenses, the landlord, or the tenant, might decide to create a sublease. For an extended discussion of the pros and cons of allowing a tenant to sublease, please refer to our article about subleasing.
If it is decided that a sublease is agreed on by all the parties of the prime lease agreement, the following sublease agreement template can be modified to fit the requirements of the landlord. Tenants should always obtain the landord’s permission in writing before creating a sublease with another party. The sublease contract template shown below is intended for use by either a landlord or a tenant.
This Sublease Agreement is made effective as of (date of sublease) by and between (Tenant name here) and (Subtenant name here). Tenant has previously entered into a Lease Agreement with (Landlord name here) dated (date of original lease here) for the property located at (property address here). The original Lease Agreement shall be referred to as the Prime Lease and a copy of that Prime Lease is attached as an exhibit to this Sublease Agreement and shall become a part hereof by reference. The Tenant now desires to sublet the lease property to the Subtenant and the Subtenant desires to sublet the lease property from the Tenant. Therefore, the parties agree as follows:
Tenant, in consideration of the sublease payments provided in this Sublease Agreement, sublets to Subtenant (describe property here, example: 2 bedroom duplex) located at (address of property).
TERM AND POSSESSION:
The term of this Sublease will begin on (date Sublease begins) and, unless terminated sooner pursuant to the terms of this Sublease, it will continue for the remainder of the term provided in the Prime Lease, which terminates (date of end of original lease). Subtenant’s tenancy will terminate on (date of end of original lease) unless Landlord and Subtenant sign another written agreement prior to the end of tenancy providing for an additional period of tenancy. Subtenant is not responsible for finding a replacement upon the termination of his or her tenancy. Subtenant shall not make any further assignments or subleases without the prior written approval of Tenant and Landlord.
Subtenant shall pay to Landlord sublease payment of ($ amount of payment shown in Prime Lease) per month, payable in advance on the first day of each month. Sublease payments shall be made to Landlord, by mail, at (mailing address of Landlord) or hand-delivered to Landlord at (address for hand-delivery).
At the time of signing of this Sublease, Subtenant shall pay to Landlord, in trust, a security deposit of ($ amount of security deposit as shown in Prime Lease), to be held and disbursed for Subtenant damages to the Property, or other defaults under this Sublease (if any) as provided by law.
Notices under this Sublease shall not be deemed valid unless given or served in writing and forwarded by mail, postage prepaid, addressed as follows to every interested party.
Tenant Signature and Date
Subtenant Signature and Date
Landlord Signature and Date (required or Sublease is not valid)
The parties to the sublease may wish to consult their attorney regarding rights and duties under the prime lease and sublease. In general, please note that under a sublease agreement, the original tenant (who signed the prime lease agreement) normally remains responsible to the landlord for all terms and conditions of the prime lease. For example, if the subtenant does not pay rent or causes damages to the property, the original tenant remains liable to the landlord for these damages. For these reasons, it is recommended that the original tenant require a security deposit from the subtenant, and have the subtenant pay the rent to him or her (the original tenant) rather than to the landlord. The original tenant stands in the relationship to the subtenant as a landlord, and has the right to terminate the tenancy of the subtenant with proper legal notice.
As you can see, the decision to sublease a residential property and create a Sublease Agreement requires research and due diligence on the part of the original tenant. All parties need to become familiar with the rental property laws of the state in which the property is located. LandLordStation.com provides a variety of information in our tenant resource center that is very helpful. In addition, we offer a landlord community which is a place where you can get expert advice on issues you have pertaining to rental property. For the best information and assistance, browse LandLordStation.com.
© Copyright 2015 LandlordStation LLC