What is a Sublease Agreement?
A Sublease Agreement is a contract that outlines the terms of a sublease between an existing tenant and a subtenant.
Subleasing, also known as subletting, means that the existing tenant re-rents some or all of their rental property to the subtenant for a portion or the remainder of the original lease. If tenants need to relocate permanently or temporarily before their lease is up, subleasing can help them regain some or all of their otherwise lost rent.
It is important to note that during a sublease, the subtenant enters an agreement with the existing tenant, not the landlord or owner of the rental property. In addition, note that subleasing differs from assigning a lease. Assigning a lease means someone takes over a lease from an existing tenant. The existing tenant becomes no longer responsible to the landlord.
A Sublease Agreement is also known as a:
- Sublet agreement
- Sublease contract
- Sublet lease agreement
- Sublease rental agreement
- Sublet contract
Our Sublease Agreement template is for residential properties, such as houses and apartments. If you need to sublease a commercial space, use our Commercial Sublease Agreement.
Who are the parties to a Sublease Agreement?
The parties in a Residential Sublease Agreement are:
- The sublandlord or sublessor (original tenant), who entered into a lease with the landlord, and is now subleasing all or part of the rental property to a subtenant.
- The subtenant or sublessee, who enters into a lease with the sublandlord to temporarily rent all or part of the property.
Although a landlord owns the residential rental property and is renting to the original tenant, the contractual obligations in a Sublease Agreement only exist between sublandlord and subtenant.
How does a Sublease Agreement work?
First off, to sublease a rental property, a tenant has to check the terms of their Residential Lease Agreement to see if subleases are permitted under their lease terms. States have varying laws regarding subletting which determine whether a landlord has the right to disallow a tenant from subletting.
If a lease prohibits subleasing, the tenant may ask the landlord to consider amending the lease so they can sublease their rental.
Even when subleases are allowed, most tenants must get their landlord’s consent before letting a subtenant move in. If the landlord has not yet given their written approval, the Sublease Agreement can include a section where the landlord can acknowledge that they allow the sublease.
Tenants have to understand that a Sublease Agreement does not invalidate the terms of the original Residential Lease Agreement. In other words, the original tenant retains their obligations to the landlord and is liable for any damage or lease violations that the subtenant may cause. In addition, the sublease cannot exceed the length of time that the original tenant agreed to rent the property for, as indicated in the original lease.
Both the subtenant and sublandlord should sign the sublease and keep a copy for their records. In addition, the sublandlord should either attach a copy of the original lease to the Sublease Agreement or deliver it directly to the subtenant.