Sublet Agreement

A sublet agreement is the agreement governing a type of leasing that may occur between the lessee in an original lease and a third party. In this type of agreement, the original lessee becomes a sublessor and the third party becomes a sublessee. The arrangement made between the two is called a sublease. When this new lease is created, another agreement, a sublet agreement, is also made to define the terms of the lease. A sublease can normally result from any type of lease unless, of course, the original lease has a provision that prohibits it from happening. As long as this is not true, the lessee can rent out their apartment and become a sublessor after finding a tenant and consenting to an agreement. In a sublet agreement, the sublessor is not only responsible for paying rent in the original lease, but is also renting out the apartment, either in whole or in part.

Fast Facts

  • A sublet agreement may be needed when taking on lodgers under a lease
  • Commercial subleases may take place between an owner, management company, and a third party

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