Sublease Agreement 

No tenant signs a lease intending to end it early. But sometimes circumstances arise that prevent a tenant from being able to fulfill their rental agreement. Fortunately, there’s a solution many landlords and tenants choose: Subleasing.  

Subleasing occurs when a tenant who originally signed a lease with a landlord rents out their unit to another “subtenant” for a certain period of the lease term. It’s a solution to many common issues tenants may have with committing to a longer lease, such as temporary travel, changing circumstances/jobs, or roommate problems. 

In this article, we’ll discuss what a sublease agreement is, what’s included in it, and how to use this document appropriately as a landlord or “sub-landlord.” And if subleasing sounds right for your situation, you can download your copy of Innago’s free Sublease Agreement above. 

What is a Sublease Agreement? 

A sublease agreement is a legal document establishing the relationship and rights between a “sub-landlord” (the original tenant) and a “sub-tenant” (the new tenant) in a subleasing situation. The original tenant or sub-landlord rents out their unit to a new tenant such that there are two lease agreements in effect for one property or rental unit. 

Note that a sublease agreement is different from a master lease, which are common for commercial properties. 

Sublease agreements serve a similar purpose to regular lease agreements: Both describe the responsibilities of both parties regarding rent payments, utilities, maintenance, and property rules. However, even when a sublease agreement is in effect, the original tenant is not released from their duty to their own lease agreement. So while the original tenant effectively becomes a landlord themselves and collects rent from the sub-tenant, they still must pay the original rent back to the original landlord. The rental rates may or may not be the same, so it is possible for the sub-landlord to make a profit off the subleasing agreement, depending on the circumstances. 

Unlike subletting, where a new tenant takes over the original tenant’s lease, subleasing agreements are totally separate from original leases and are equally enforceable. Both leases are enforced at once: The subtenant is responsible for fulfilling the sublease contract, and the original tenant (sub-landlord) is responsible for fulfilling the original lease agreement. 

When is a Sublease Agreement Used? 

There are several circumstances in which subleasing might be warranted. Subleasing is very common in student housing, as students are fairly mobile and need more flexibility in their housing arrangements. A student who signs a lease in August may find themselves beginning internships, studying abroad, or living at home by May. Subleasing allows students to maintain their leases and avoid expensive termination fees while retaining the flexibility to move around for jobs, relationships, or other circumstances. 

Subleasing agreements are also used when a tenant needs to move out before their initial lease agreement expires. They may need to relocate, downsize, or upgrade in the middle of a lease term due to varying circumstances like a new job, lost job, marriage, children, or roommate issues. 

Subleasing allows tenants in these circumstances to avoid paying large termination fees or rent in two places at once. It also allows landlords to keep the unit occupied year-round rather than terminating the lease and facing tenant turnover expenses. 

Who is Involved in a Sublease Agreement? 

In a sublease agreement form, there are two main parties: The Sublandlord (the original tenant) and the Subtenant (the new tenant who is replacing the original in the rental unit). 

It’s important to note, however, that the primary landlord is also necessarily involved in the process of subleasing (even though they may not be indicated in the actual sublease agreement itself). The sublandlord is often required to seek the primary landlord’s approval before signing a sublease with a new subtenant, as per the terms of the original lease agreement. The primary landlord will often wish to screen the subtenant before allowing a sublease agreement to be signed. 

It’s important that all parties in a sublease arrangement communicate frequently throughout the process so that everyone is clear on the rights, responsibilities, and rules that apply. 

What is Included in a Sublease Agreement? 

A sublease rental contract includes many of the same terms and clauses as a regular lease agreement. It starts with basic information about the involved parties and the property: 

• Both parties’ names, addresses, and contact information 
• The rental property address 
• The monthly rent and amount of the security deposit 
• The sublease start date, end date, and period 

A sublease agreement generally also includes information about: 

• The occupancy and guest policies 
• Permitted parking at the residence 
• The condition of the grounds and property 
• Smoke detectors 
• Rent payments and late fees 
• Utility services 
• Lease termination policies and procedures 
• The governing law by which the sublease agreement is enforced 
• Joint and individual obligations between multiple subtenants 
• Other clauses as needed 

A sublease agreement generally also includes some language designating which parts of the original lease agreement the new subtenant is responsible for. 

How to Use a Sublease Agreement 

Before a sublease agreement template can be used, the primary landlord must generally consent and approve the new tenant, although this depends on what was said about subleasing in the original lease agreement. 

The primary landlord will often screen the subtenant themselves to ensure that the new occupant is a safe and reliable tenant, as they will be occupying and using their property. 

After the necessary approval has been received, the tenant and subtenant should both sign the agreement and agree to its terms. Local or state laws may regulate the specific terms of a sublease agreement, so it’s important for either the primary landlord or the sublandlord to seek legal advice if such laws are in effect. 

Sublease Agreement FAQs 

Am I legally required to let my tenant sublease?

Laws regarding subleasing vary from state to state and may depend on your municipality as well. In some states, landlords may not be able to deny their tenants the ability to sublease, but they can still generally require written permission to sublease and have a say in the choice of subtenant (as long as these stipulations were included in the original lease agreement). 

Does the original tenant need the landlord’s written consent to sublease?

Yes, the original tenant will generally need to get their landlord’s written consent before finding a subtenant and signing an agreement. However, the process of how this works depends on the language in the original lease. 

Whose responsibility is it to find a subtenant?

In most cases, it is the tenant’s responsibility to find a new tenant if they want to sublease. However, the landlord may be involved in approving this tenant. 

Does the sub-tenant still undergo the tenant screening process?

Yes, sub-tenants are usually still screened via the primary landlord’s tenant screening process. Property owners still want to ensure that a responsible and reliable renter is occupying their property, even if the original lease agreement and responsibility to fulfill it still lies with the original tenant. 

Can I sublease if I have roommates?

This depends on the original lease agreement, the primary landlord’s consent, and local/state laws. 

Conclusion 

A well-structured sublease agreement protects both the tenant and the subtenant by clearly defining rights and responsibilities. By taking the time to outline terms upfront, you can avoid potential conflicts down the road. To simplify this process, download Innago’s free Sublease Agreement template (Word) provided above and start your subleasing journey with confidence. 

Innago does not provide legal advice. This article is for educational purposes only and may not include the most up-to-date information. We recommend you consult with professional counsel if you have legal questions regarding your compliance with relevant laws.