Read further to learn more about the rules & regulations surrounding subletting in Colorado, whether for residential or commercial tenancy.
What is a Sublease Agreement?
In the state of Colorado, a sublease agreement is a contract that is written so that the original tenant has the right to act as the landlord in the unit that they are renting. This is an option that is used by some tenants who need to move unexpectedly before their lease expires. The sublessee would act as the tenant, which means that they will be responsible for paying the rent on time, taking care of the unit, and paying to repair any significant damage that was done to the unit while they were renting it.
With that being said, this is not a true contract between the sublessee and the owner of the property; it is simply an arrangement that is between the original tenant and the sublessee. So, this means that if anything happens that would terminate the lease, the sublessee would not have a legal claim to the unit. Some property owners will work out a deal with the sublessee, but that is not guaranteed in all counties in the state.
When it comes to utilities, they can be left in the original tenant’s name, but they will need to either be paid by the sublessor or the money for the bills will need to be given to the original renter in a timely fashion. This agreement does not break the original one that was signed by the sublessor; it simply adds a third party into the mix so that it is legal for the new tenant to live in the unit. This means that the original tenant will need to still pay the rent when it is due if the sub-lessee fails to comply with the terms of the lease.
The tenant that signed the original lease will be responsible for the sublessee, which means that if they are excessively loud or continuously breaking the terms of the lease, it will need to be addressed. A good way to avoid a tenant who is not compliant with the terms of the lease is to do a credit and background check before inviting them to live in the unit.
Some landlords will request that any sub-agreements for the property are put in writing and approved by the landlord or the management company before any changes are made. If a sublease agreement is not permitted in the unit, it will be mentioned in the original lease as well as any other rules that will apply. In addition, a security deposit may be requested as well to take care of any issues that need to be repaired in the unit when the sublessee moves out.
How to Write a Sublease Agreement
The sections that should be included in any sub-lease agreement are as follows:
The Names of the Parties Involved in the Sublease
The first section in this document should be one that details the names of the parties who are involved in the sublease agreement. The sublessor, or the original tenant, will need to list their information in this section as well as leave a space for the sublessee’ s information. The information that is required here will be the full names, the current address, an email address, and a working phone number for both of the parties. In addition, the landlord’s information should be listed here as well to give the sublessee the address where the management office is located as well as a phone number to reach them.
A Description of the Property
It is imperative that the full address of the unit being rented is listed here, as well as the dates that the sublessee will be taking over the unit. If there is anything in the unit that is already damaged, it should be listed in the agreement. In addition, any furniture or property that is being left in the unit for the new tenant to use should also be listed in this section.
Information About the Rental Payment
One of the most important parts of this agreement is making sure that the sublessee is on the same page when it comes to the amount of rent that they need to pay each month and the day that it is due. Should the sublessee give the money for rent to the landlord or the sublessor? The details of the arrangement should be listed in this section as well as the date that the rent is considered late. If the rent is not paid on time, there is likely to be a fee that the sublessee will need to pay, which should be mentioned in the agreement.
The Required Security Deposit
The landlord may not require the sublessee to give them an additional security deposit for the cost of repairs when they sublessee moves out, so the responsibility of holding the money will fall on the head of the sublessor. If repairs are not required, the money that is being held as a security deposit must be given back to the sublessee within 60 of their move out date. The amount that is required for the security deposit must be listed in this section; however, it cannot be more than a month’s rent.
Rules for the Unit
With any sublease, there is going to be some rules that are not permitted on the property. This section should inform the new tenant of any pet policies that are in effect on the property as well as if smoking is allowed on the premise. If there is a noise policy that the sublessee should be aware of, it needs to be listed here as well. All of this information will be on the original lease as well, so it may be beneficial for the sublessor to provide a copy of the original lease with this agreement.
Signatures and Consent
The final section of the sublease agreement will include the signatures of both parties as well as the date. If the landlord requires their consent to be given for a sublease agreement to occur, there can also be a line where the landlord can sign as well.