Sublet refers to the leasing of a property by a tenant to a subtenant or another tenant. Sublet agreement approves the transferring of the lease by a tenant to a subtenant.

A tenant can sublet a property by seeking permission from the owner. The agreement defines the proper terms and conditions that are agreed upon by the tenant and subtenant. Now let us explore more about the sublet agreement.

What Is a Sublet Agreement?

A sublet agreement is signed between the tenant of the property and a subtenant to transfer the lease of the property to a subtenant. This enables the subtenant to operate on the allotted premises according to their plans.

The agreement takes place by the approval of the original property owner. It requires that the sublease will allow the subtenant to own the rights of the leased premise of the property, under the provisions and regulations declared in the original lease.

The basic capacity of a sublease agreement in the case of covering the area can be either a building or an apartment room. The obligations and responsibilities of both tenants and the subtenant are clearly mentioned.

In case of any violation of the terms, the original tenant will be answerable. Moreover, the responsibility of timely payment of rent of the property is also on the shoulders of the original tenant.

Who Are the Parties in a Sublet Agreement?

A sublet agreement basically has three parties involved in it. The presence of these three parties is mandatory, otherwise, the agreement will be considered as an unauthentic one.


The landlord is the original owner of the property that is involved in the agreement. There is a direct relationship between the landlord and the tenant. The terms and provisions of the sublet agreement should be exactly the same as declared in the original lease.

It is important to note that a sublet agreement can not be signed without the permittance of the landlord.

Sublandlord or Tenant

A tenant is a person who is primarily handed the lease of the property by the landlord. It is the tenant who further proceeds to sign a sublet agreement with a subtenant.

The tenant has the authority to manage the property matters and is also accountable in case of any kind of unavoidable circumstance.


The subtenant has a direct relationship with the tenant through the sublet agreement. The subtenant negotiates with the original tenant in order to obtain the lease or rent a part of the property.

What Type of Properties Can Be Sublet?

An important question that arises in the mind is what type of properties can be sublet. The answer is simple. It depends on the permission of the landlord.

The deciding factor of what property to sublet is solely the person who owns the property i.e. landlord and not the tenant. Generally, any type of residential property can be sublet if the landlord allows. It can be a house, a condo, or an apartment.

The interesting thing to know about is that the limit explained can be narrowed even further, which means that a tenant can sublet a small portion of the premise too. For example, a single room in an apartment, a garage, or a storage space.

People also get a basement suite on sublease as a residence. While most of the people opt for getting a subleased portion for mere residence, some people tend to use it for storage. This space is used for storing goods which they cannot have in their own home.

What Components Are Included in a Sublet Agreement?

The components of a sublet agreement define all the details that are agreed upon in the negotiation between the tenant and the subtenant. Following are the details that are a part of the provisions of a sublet agreement:

  • The term of the sublet agreement will be strictly followed. The subtenant will use the allotted portion for as long as the timespan decided in the agreement allows.
  • The whole premise or a portion of the premise will be sublet. The entirety of allotment depends on the negotiation between tenant and subtenant.
  • Rent and utilities are two important clauses that remain the same as they were originally declared in the master lease.
  • Insurance of the renter is a mandatory requirement.
  • Improvement can be made as the subtenant pleases.
  • A damage deposit must be arranged.
  • The residential rental inspection report is also presented.

When Is a Sublet Agreement Required?

The basic need for a sublet agreement arises when a tenant decides to move out of the property he/she has gained through the lease.

As the tenant decides to move out of the rental portion and there still is a time period left before the lease term concludes, he/she seeks permission from the landlord.

When the permission is granted, the tenant arranges for a new tenant or a subtenant who will reside and pay the rent. The drafting of the sublet agreement takes place as soon as the terms and conditions are agreed upon by both parties, with the landlord’s permission.

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A sublet agreement allows a tenant to rent a portion of the property to a subtenant. The sublet agreement is signed by the approval of the landlord. It allows the subtenant to use the subleased portion according to his needs i.e. for residential purpose or a basic storage place.

The terms and conditions are purely negotiated between the sublandlord and the subtenant, apart from the rent and the utilities that remain the same as mentioned in the master lease.

If you are looking for downloading a free sublet agreement template, CocoSign is the perfect place for you. Besides that, there are many other different types of professional agreement templates available free of cost.


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