Why do you need to use a Residential Sublease Agreement
A Residential Sublease Agreement, also known as Sublet Agreement, is a compact legally binding contract made between the original tenant of rental property (sublandlord) and a new tenant (subtenant or a sublessee).
This agreement gives the subtenant the rights to share or to occupy the rented premises from the original tenant. The agreement is beneficial when the original tenant will be reached for all or part of the remaining term under the initial lease agreement with the landlord. The landlord may prefer to allow the primary tenant to exit the lease shortly by having the subtenant take over all of the original tenant’s rights and obligations.
It’s essential to have a written contract in place to outline the terms of the sublease.
A formal inline agreement clarifies the obligations of all three parties during the sublease term and can prevent future misunderstandings over payment details, maintenance duties, and liability for damages.
When do you need to use a Residential Sublease Agreement?
Usually, the sublandlord or original tenant must get consent from the landlord before he/she is allowed to sublease the rental property. It is essential to understand that you are making a new and distinct legal relationship between yourself and the one to whom you are subleasing the property. In the meantime, the relationship between you and your landlord remains intact. If you choose to sublease, you will remain answerable & liable to your landlord for all the terms described in your lease agreement. To protect both the original tenant and the subtenant, it is vital to have a contract in place that specifies each party’s rights and responsibilities.
Typically, the subtenant pays the amount of rent directly to the sublandlord, who in turn pays rent to the owner or landlord. Alternatively, the subtenant can also pay rent directly to the landlord as per the conditions mentioned in the agreement.
What are the main things that go on this agreement?
A Residential Sublease Agreement ideally addresses the following:
- The complete and proper names of the parties (the sub-landlord, subtenant and the landlord)
- The terms of the original lease (a copy can be attached)
- The sublease term duration (e.g., six months, one year) and whether the sublease is fixed or periodic
- The amount of rent payable
- Conditions about making alterations or improvements to the property
- Utility payments
- Insurance requirements
- Tenant’s personal information
- Rent collection amount and its procedures, including late-payment penalties
- Lease term starting and ending dates
- Additional fines, fees, and charges (if any) your tenant is required to pay
- Property access information
- A security deposit in case of any damage
- Proper use of the property and consequences for breaking the rules
- Signatures of both parties
What are the most common mistakes to avoid
- Using Outdated or Incorrect Forms
- Not Including Insurance Requirements
- Not Requiring a Cosigner
- Failing to Outline Tenant Responsibilities
- Rules Regarding Roommates
- Underestimating the charges of repairs or ongoing property maintenance.
- Not meeting state and local housing codes.
- Not Properly Identifying the Tenants
- Not Researching Rent Rates
- Not Addressing Late Rent
Do I need to use a lawyer, accountant, or notary to help me?
You can easily create a residential sublease agreement without hiring any lawyer, accountant, or notary. Creating the form online can save you time and money. It can also cut out the hefty expense of hiring a lawyer.
Why use our Residential Sublease Agreement generator?
Our easy to use residential sublease agreement generator was created by a staff of lawyers and business experts, and you can have a one for a fraction of the cost you would pay an attorney. Our tool has a subscription plan so you can create unlimited residential sublease agreements at a low cost.
We also offer 100% money back guarantee, and a free 14-day trial.