Sublease Agreement

What is a sublease agreement?

A sublease agreement is a document used by a tenant who has a lease to a residential property so that they can assign their rental rights in the property to another individual, called the subtenant. The subtenant then takes over all or a part of the tenant's time in the property via the original lease. This agreement can be used when the original tenant will be gone from the property for either a portion or the entirety of the remaining term under the original lease agreement. The subtenant may pay rent to either the landlord or the tenant to take over the space the tenant initially rented from the landlord.

For more information on the specifics of subleases and their related obligations, please refer to the legal guide Tenants and Subtenants Obligations Under a Lease Agreement.

What is the difference between a sublease agreement and a lease agreement?

Though both documents are used to rent a property, different parties are involved. A sublease agreement involves a subtenant taking over some or all of a tenant's time renting a landlord's property. The lease agreement is used directly between a tenant and landlord.

What is the difference between a sublease agreement and a lease assignment agreement?

A lease assignment agreement is different from a sublease agreement because the entirety of the lease interest is being transferred in an assignment. With a sublease, the original tenant is still liable for everything, and the sublease may be made for less than the entire property interest. A lease assignment transfers the whole interest and puts the new tenant in place of the old one.

Is it mandatory to have a sublease agreement?

No, it is not mandatory to have a sublease agreement. If the landlord allows it, a third party can move into a tenant's space and take over the rental payments. However, most leases specify that a tenant must have the landlord's permission before subleasing and that if subleasing is going to occur, the parties must use a sublease agreement. Without a sublease agreement, the danger and liability for all parties involved increases. If the third-party stops paying rent, the tenant may be held responsible for those missed payments. If the tenant violates their lease by subleasing, they may be evicted, leaving both the tenant and the third party without a place to stay.

What is a "sublessor"?

The sublessor is the original tenant who is leasing some or all of their interest in the property to the third party.

What is a "subtenant"?

The subtenant is the third party who is leasing some or all of the tenant's interest in the property from the tenant.

What is a "master lease"?

The master lease is the original lease agreement between the landlord and the tenant.

What must a sublease include?

A valid sublease agreement must contain at least the following mandatory clauses:

• Contact information: The sublease agreement should include the name and contact information for all the involved parties, including the subtenant, the tenant, and the landlord.
• Premises details: The sublease agreement specifies the address of the premises that is being subleased. It should also describe the premises, including the number of bedrooms and bathrooms, as well as any other information necessary to describe the premises.
• Important dates: The sublease agreement includes all relevant dates, such as the dates the master lease began, when it was due to end, and the dates when the subtenant will be taking over the property.
• Term length: The sublease agreement specifies whether the subtenant will be finishing out the remaining term of the original lease. For example, if the original tenant is moving away permanently, the sublease would say that the subtenant is taking over the entirety of the remaining lease.
• Payments: The sublease agreement outlines how much the subtenant will pay, who they will pay it to, and how those payments will happen.

In addition to the above mandatory information, the following information may also be included:

• Security deposit: The tenant has the option of charging the subtenant for a security deposit that will be used in case of any damage during the subtenant's stay in the property.
• Written consent: The sublease agreement includes the option of requiring the landlord to provide their written consent to the sublease. This consent to sublease is then attached to the agreement.

Who is involved in a sublease agreement?

The sublease agreement involves three main parties. The first party is the landlord. They are the person who has initially rented out the property. The next party is the tenant, also referred to as a sublessor. They are the party who originally rented the property from the landlord. The final party is the subtenant. They are a third party who is taking over some or all of the time remaining on the lease between the original tenant and landlord.

What can the duration of a sublease agreement be?

The sublease can run a maximum of the remaining time left on the original lease. Once that time has passed, if the subtenant wishes to continue renting, they must make a lease with the landlord.

What should be done once the document is complete?

Once the sublease agreement has been written, the tenant and subtenant should both sign and date the agreement. If the landlord's consent is required for the sublease, the landlord should sign the document and write their own consent to sublease document. This document is then attached to the sublease agreement. The original lease should also be attached to this document. All the involved parties should save a copy of the sublease agreement in case of future misunderstanding or dispute.

What documents should be attached to the sublease agreement?

The original lease should be attached to the sublease agreement. If landlord consent is required, their written consent should also be attached to this document.

Which laws are applicable to sublease agreements?

Matters related to lease agreements are generally subject to the law of individual states. Different states have different requirements about the amount of notice a tenant must provide their landlord before subleasing the property. However, nearly all states require that some form of written notice be given to the landlord before the sublease.

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