The Residential Sublease Agreement is a contract whereby a lessee or tenant rents out the leased property or some part of it to another person, the sublessee. This agreement is valid and binding even on the landlord, except when the original lease between the landlord and tenant prohibits or does not allow subletting.
State-Specific Sublease Agreement Templates
What is a Residential Sublease Agreement?
A residential sublease agreement is where a tenant leases their rental unit (or part of their rental unit) to another tenant.
The main reasons for a tenant to want to sublet their unit are:
- Needing to move before the rental agreement terminates – A job relocation or family emergency may cause a tenant to need to leave before the end of the rental agreement.
- Financial necessity – Renters can benefit from extra income if they find themselves in a tough financial situation.
- Companionship – Some renters have extra space and may want the security of a roommate.
- Family/friend necessity – A tenant may need to sublease part of the rental unit to a friend or family member for them to stay long-term and stay compliant with lease policy, HOA rules, or COA restrictions.
Who Signs a Sublease Agreement
Typically, the tenant and subtenant would both sign the sublease agreement. In some states, the landlord is also required to sign the agreement. However, many states don’t specify sublease requirements, and in some states, the agreement could be verbal.
Do Tenants Need Permission to Sublease?
Tenants do need permission to sublease as the original rental agreement is between the tenant and landlord only, not the tenant and any additional tenants they choose to rent to at a later date.
Check the provisions of the original, or “master,” lease—does it allow tenants to sublease? If the master lease is silent on subleases, then most states allow a tenant to sublease.
However, if the tenant doesn’t have the landlord’s permission to sublease, it’s possible that any additional occupants could be forced to leave.
Keep in mind, that not all states require written rental agreements, whether master leases or sublease agreements. However, it’s in everyone’s best interest to put all agreements in writing.
Can a Landlord Reject a Subtenant?
A landlord can prohibit a tenant from subletting if the proposed new tenant is unqualified or if the lease agreement specifically and legally bans subletting.
What’s Included in a Sublease Agreement
Here are some common elements of residential sublease agreement forms:
- Party information – Clarify who is the landlord, the original tenant, and the subtenant, and give contact information for each.
- Master lease agreement terms – Notify the subtenant of the terms and rules of the master lease
- Length of the sublease – Clarify when the lease ends
- Subtenant’s rent procedure – Explain how to pay, who to pay, and when to pay
- Security deposit amount – Covers the tenant if there is any damage to the rental unit
- Improvements to the rental unit – Discuss if the subtenant is allowed to paint or make any changes to the unit
- Utility payment information – Determine if the subtenant is responsible for paying for utilities and what portion they must pay for
- Maintenance and repair duties – Clarifies who is responsible for which aspects of maintenance and repairs for the rental unit
- Rental insurance information – Tenants may require their subtenants to provide renter’s insurance for the subtenant’s things
- Rental property information – The address of the unit the subtenant is renting
- Rental unit inspection checklist – A written list of any existing damage to the rental property
- Landlord entry rights – When the landlord or sublandlord may access the rental unit leased by the subtenant and how much notice is required before entering
- Pet policy – Clarify if the subtenant can have a pet and if so, the pet deposit amount
- Late fees – Discuss the late rent policy and if fees apply
- Parking information – Determine if the subtenant is allowed to park on the property if they have a parking space, the make/model of their car, and if any parking fees apply
- Smoking policy – Clarify whether the subtenant can smoke in the unit or on the premises
- Storage Information – Discuss any additional storage options available on the site or nearby
- Signatures and date – The tenant and subtenant need to sign the lease; some states may also require a landlord’s signature
- Required disclosures – Any disclosures required by state or federal law to be included in the initial lease agreement must also be included in the sublease agreement
- Reasons the lease may be terminated -Let the subtenant know what actions could cause the lease to be terminated, and what they need to do to lawfully terminate the lease
How to Sublease a Rental Property
To complete the sublease process tenants need to:
- Ask Permission from the Landlord
- Complete Subtenant Screening
- Put the Agreement in Writing
- Discuss the Master Lease Agreement
1. Ask Permission from the Landlord
Typically, the first step is for tenants to get permission from their landlord to sublease, or at least notify the landlord of their intention to sublease.
Some states require tenants to send the landlord a written request to sublease, while others only require tenants to get their landlord’s permission (in writing or verbally) in certain circumstances, and some states don’t require this at all.
2. Complete Subtenant Screening
Performing the same tenant screening process on the subtenant that all of the other tenants go through protects the landlord, tenant, unit, and community. The subtenant may also be required to complete a rental application form before being approved to sublease.
Landlord involvement depends on the state in which the rental unit is located and the terms of the master lease agreement. The landlord may be allowed (or required) to give final approval to a subtenant and perform the screening process before allowing the subtenant to move in.
3. Put the Agreement in Writing
Although it is not required in all states, putting the sublease agreement in writing covers things like rent amount and due date, sublease termination date, and how to report issues with the rental unit, for starters.
The tenant may want to review the sublease with their landlord to be sure it complies with the master lease agreement and that there’s nothing the tenant has accidentally failed to include.
4. Discuss the Master Lease Agreement
Discuss the master lease agreement with the subtenant so they understand the rules and regulations for living in the unit as they will also be required to follow them.
Provide them with a signed and printed copy of the sublease and master lease.
