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What is a Sublease Agreement?
Sometimes, when rent is becoming a significant financial burden, some tenants opt to enter into a sublease agreement and take on sub-lessees. This document, which has legal status in the state of Illinois, effectively obligates the lessee to a sub-lessee, who will have the same rights and responsibilities as have been afforded by the original landlord’s lease. It’s important to understand that the new sublease doesn’t override anything that was established in the original lease.
In many cases, the sub-lessee is required to pay the lessee the agreed-upon portion of the rent, which is then paid to the owner of the property. In addition, the cost of the utilities can also be paid in the same way. It’s critical to understand that this sublease isn’t between the sub-lessee and the landlord; it’s considered a legal agreement only between the tenant and his or her subtenant. As a result, it’s often considered a slightly unstable arrangement for those subleasing on the property.
Despite this, this is a much more flexible arrangement for the sub-lessee since this individual will be able to terminate the sublease much easier than anyone would be able to with a standard lease. For the original renter, this is also ideal because it can be somewhat freeing when considering the limitations of a semi-long-term lease.
For example, the original tenant can opt to move to another location without needing to break the original lease, which can lead to penalties. It’s important to note that not every property allows for this type of arrangement, so before drafting a sublease agreement, it’s a good idea to converse with the landlord or management company.
How to Write a Sublease Agreement
When a sublease agreement needs to be written, there are a few sections that will be required in the document. These sections that must be covered include:
The Names of the Involved Parties
Unlike a standard lease, the names of the primarily-involved parties, which will include the sub-lessor and the sub-lessee, will have to be placed on the document first. After this information is recorded, the name of the lessor, or landlord, should be included. In addition, the date of the sublease signing should be entered for the sake of recordkeeping.
The Sublet Area
When establishing a sublease, it’s essential to define precisely the amount of area the sub-lessee will have access to during his or her habitation. This can be done using percentages, or for those arrangements where the sub-lessee is to be the only occupant, a checkbox can be added to indicate that the entire rental is available for use by the subtenant.
Terms of the Sublease Agreement
This section will lay out the terms of the sublease agreement, which will include the date that the tenant is going to take over the unit and the date that the lease with the landlord ends. A copy of the original lease should be included with the new agreement so that the new tenant can look over any details that may be essential to them.
Rental Payment Information
The sub-lessee needs to understand how much rent is payable monthly, so it’s crucial to include a section precisely defining how much the value of rent is for the sublet area as well as how often rent must be tendered. In most cases, the sub-lessee will give rent to the tenant, but in some situations, information can be provided that can aid the sub-lessee in getting payments to the landlord by the due date. It also needs to be clearly stated if the sub-lessee will be responsible for utilities.
Finally, the entirety of the full-term rent that’s payable throughout the sublease should be outlined. In addition, the monthly installment amount will need to be provided.
The Amount Required for a Security Deposit
Most properties include a security deposit to cover any damages that may have occurred on the property. Some landlords require an additional security deposit from sub-lessees, but this isn’t always the case. Some sub-lessees may want to request a security deposit so that there’s some coverage for any damage that might occur on the property. If this is the case, then the document should clearly state which party is holding onto this security deposit.
Rules for the Unit and the Property
It’s essential that the sublease agreement reinforces the rules of the original lease agreement. This ensures that the sub-lessee doesn’t inadvertently violate the conditions of the lease. Here are a few to consider:
- Smoking Policy: Smoking Policy: Some properties don’t allow any form of smoking on the premises, and others allow for smoking in designated areas. For this section of the sublease agreement, all of the property’s policies on smoking must be followed by the sub-lessee.
- Noise Policy: Many Illinois properties have a “quiet time” where loud noises are not permitted. This includes the movement of furniture, social events, and noisy interactions in common areas.
- Pet Policy: Not every property allows pets, and for those that do, many require a pet fee. If the lessee doesn’t have a pet and the sub-lessee does, then the sub-lessee may be required to pay this fee so that any animal-related damages are covered. It’s also important to note on the agreement any restrictions on the property for pets – not every rental allows every breed or every type of pet.
On some leases, there is a requirement that states that any prospective sub-lessees must be first approved by the landlord or management company. In some cases, the sublease agreement may have to be presented to the landlord in order for the sublease to be considered valid. If the landlord’s consent is a requirement established by the original lease, then the sublease agreement should state this clearly.
Signatures and Date
Finally, to complete the document, both parties must sign and date the document. This includes also printing the names of both the sub-lessor and the sub-lessee as well as dating the document after each signature. It should also be indicated that a copy of the original lease will be included with this lease agreement.