A sublease contract is very crucial when a tenant is subletting a rented residential property (or a part of it) to someone else. It makes sure that they get the rent on time, the people who are subletting follow the rules, and there is no conflict.
People create a sublease agreement at the beginning of the sublease time period. To create a proper sublease agreement, you can check out our template library to get a sublease agreement template. Keep reading to learn about sublease agreement in detail:
What is a Sublease Agreement?
A sublease agreement is an agreement where a tenant rents out a property to a secondary tenant. The sublease can be seen as a secondary lease drawn out from the primary lease.
Tenant: The original party that is already renting the property prior to the sublease agreement
Secondary Tenant: The party which intends to rent the property from the tenant after signing the sublease agreement
A tenant has the option of subleasing the entire property that they are renting or only a part of it. In order to sublease a property, the tenant requires the permission of the property owner beforehand.
In case that a primary lease forbids the subleasing of a property, the tenant cannot do so without modifying the primary lease in agreement with the landlord.
What is Included in a Sublease Agreement?
The important things to include in a sublease agreement are:
Identification of Parties
The sublease agreement should state the name of the tenant and the secondary tenant. It may include additional details such as their social security number.
Property details include the address of the property along with the part of the property that is being rented.
Length of Sublease
Defining how long the sublease will last is very important in a sublease agreement.
The agreement should mention how much rent is due every month and the due date for the rent. If the rent is late, the agreement may mention a grace period and any late fee.
Providing an early termination clause in a sublease agreement helps both parties from future uncertainties. If either party wishes to end the lease earlier than the expiry period, the early termination clause dictates the notice period and the penalties involved.
If the secondary tenant is paying any security deposits, the sublease agreement should state so. It should also mention the conditions for the refund of the security once the lease has completed.
There are other optional components that one can add in a sublease agreement based upon the requirement. These include parking policy, pet policy, smoking and drinking restrictions, etc.
The sublease agreement comes into effect when both parties sign it. After that is done, the terms of the agreement cannot be changed by either party unless both of them agree to the changes.
When to Use a Sublease Agreement?
A sublease agreement can be required if:
- You are a tenant renting out a part of your premises to a secondary tenant
- You are a secondary tenant renting a property from another tenant
- You are an estate broker who needs such an agreement for the customer
A sublease agreement protects the interests of all the parties involved in the agreement.
Most of the rules of a sublease agreement draw out from the primary lease. This makes sure that the secondary tenants abide by the terms set forward by the landlord such as noise levels, local housing rules, etc.
Further, it provides financial security to the primary tenant by providing a due date for the rent and amount of the rent in writing.
A sublease agreement defines clearly the portion of the property on which the sublease applies. This provides clarity to the primary tenant and the secondary tenant about their rights and their responsibilities.
How to Sublet an Apartment?
The first step to sublet an apartment is to get the consent of the property owner. If the primary lease has prohibited the tenant to sublet the property, the tenant has no right to do so.
Once a tenant and the secondary tenant have shown their interest in subleasing the property, they should negotiate on the terms of the sublease. The rent, tenure of the lease, and other clauses can be negotiated.
When both parties agree to the terms, creating the sublease agreement is the next step. In order to create a sublease agreement, you can download the subleaset agreement template available at CocoSign.
Now that all the details regarding sublease agreements are clearly laid out, the only thing left to do is to create a sublease agreement. Download the attorney-created sublease agreement templates and edit them as per the requirement.
CocoSign also contains a vast collection of agreement templates designed for every need. You can browse through the collection and choose any that you require.