Sublease Agreement is used when the original tenant is offering the already leased apartment on lease to a new tenant. This mostly happens when the tenant is unable to complete his term of lease and does not wish to terminate the lease and subleases the apartment to another tenant. Subleasing requires prior permission of the landlord.
If the Landlord has given the permission of Subleasing the property to another tenant the original tenant needs to make sure the new tenant pays the rent or any other payments on time. The original tenant also needs to make sure that the new tenant abides by all the terms of the lease. The original tenant still has to pay the landlord the rent whether or not the new tenant pays him and also any damages done by the new owner are the original tenants responsibilities and he may have to compensate for it.
Both residential and commercial properties may be subleased if the landlord has given the permission for it.
Typical Example when a Sublease Agreement can be used
John has recently taken an apartment on lease which still has 10 months of lease pending, now has been offered a job in another city and needs to move out of this apartment but if he breaks the lease he will be liable to pay the landlord a fee for terminating the lease so instead he subleases the apartment to Mathew who was looking to rent an apartment, now according to the sublease Mathew will have to pay John the monthly rent which John will pay to the landlord. If Mathew fails to pay a rent John will still have to pay the landlord the rent even though Mathew has not paid him the rent.
Download Blank Residential Sublease Agreement PDF Template
Download Blank Commercial Sublease Agreement PDF Template
Steps to Write Standard Sublease Agreement
- Enter the date and the names of the lessor and lessee on the respective lines.
- Enter physical address and a description of the premises.
- Enter date of commencement and termination of the lease.
- Enter the monthly rent amount and due day for remittance.
- Enter amount of security deposit in US dollar.
- Specify proposed use of the premises.
- Provide the date of the original lease agreement and the name of the original lessor.
- Specify excluded obligation, if any.
- Enter name of the broker and fee amount on the respective lines.
- Provide information about additional provisions, if any.
- Enter the name of the place and the subtenant, tenant, original landlord, and the guarantor must date and sign the form along with the corporate seal.