Sublet Agreements

Subletting occurs when a tenant decides for whatever reason to vacate their lease premises prior to the lease expiration period or has too much space and wants to cut their expenses by subletting a portion of the space to a third party.  The sublet lease can help to reduce the tenant/sub-landlord’s financial obligations.  A sublet contract is used for residential purposes, such as subletting out an apartment, and also for commercial lease space.  The sublet form can be prepared by a broker, attorney or by the respective parties.

Tenant and Landlord Agreements in Subletting

The parties to the sublease agreement are the landlord, tenant and sub-tenant. The tenant is actually stepping into the role as a sub-landlord.  A sublet lease contract generally requires the landlord’s approval. Basically, you are turning the rental or lease over to a third party, the sub-tenant, who will then take over the responsibility for the lease terms. However, if the third party does not meet their obligations, the original tenant/sub-landlord is still responsible for paying the rent.

Under some circumstances, the landlord may agree to release the original tenant from their lease and agree to enter into a new lease with the sub-tenant.  This would be most beneficial to the original tenant because then they can walk away clean and not have to worry about any financial obligations.

Simple Sublets

A simple sublet form contains the following information:

• Names of the parties and their contact information
• The commencement term of the sublet contract
• Property address
• Sublet rental amount
• Sublet rental term
• Property use    
• Who is responsible for operating expenses 
• Reason for sublet
• Signatures of tenant, landlord and subtenant

Risks for Tenant

The tenants should review their sublet lease to make sure subletting is allowed. Then it is a good idea to discuss the sublet with the landlord to see if he or she is willing to let the tenant out of their lease, and if so, at what price.  In this economy, landlords are willing to make all kinds of deals with their tenants so it does not hurt to ask first.

Since the tenant runs the risks of having to pay for property damage, rent or even having to reimburse the landlord for eviction costs, it is smart for a tenant entering into a sublet contract to   collect a security deposit and all the rent upfront from the subtenant to avoid risks. The tenant should consider if the risks of subletting outweigh the benefits before making a final decision.

Legal Help

A landlord tenant attorney can prepare the sublet form contract for the parties involved. If you have any questions about a sublet contract, or if you have a landlord/tenant/subtenant dispute matter, it is recommended that you consult with a real estate lawyer.  Landlord tenant issues can be complicated, and a attorney can explain what legal remedies are available to you.