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Do you go on vacations for summer holidays? If you shook your head in approval of the statement, then you can make extra money. Do you know how? By subleasing! Yes, it is true. In fact, many people who go for summer jobs, holidays, internships or go home, they bring in extra cash to their bank by subleasing their apartments. This is really the best way to offset your apartment cost while you are away. However, many people do not opt for it because they think that subleasing is a very daunting task. What they don’t realize is that the money they will earn at the end will simply make them forget about all of it.

Subleasing is helpful when one does not require using their apartment during a certain time period of their lease; hence, they may consider subleasing their apartment to relieve themselves of the rent obligation when they are away from home. Sublease and lease agreements are almost similar, with the only difference being the parties involved.

So, if you are planning to go on vacations or are going to spend some time away from your home, you may be interested in subleasing. To explore about subleasing in detail, read this article carefully.

What is a Sublease Agreement?

A sublease document is a real estate property rental agreement between a new tenant and the original tenant. A sublease agreement is also known as sublet agreement, sublet contract, sublease contract and a room rental agreement. This type of agreement is common when tenants are going away from their home or when the tenant finds that they can no longer meet the terms and conditions of the lease. For this reason, they may opt for a sublease agreement, if the landlord permits them to. Subleases can be used for both commercial and residential properties.

A sublease is actually for a predefined purpose and therefore, it can sometimes create situations that can make it impossible or difficult for the original tenant to abide by the terms of lease. For instance, if Carol wants to rent an apartment in California having a yearlong lease and unfortunately, she receives a job offer from Boston, she may want to sublease her apartment to another person for the remaining time period. This can help her compensate for the cost of the rent while she is away.

Also, a sublease will help her accept the job and move out of town. She will not have to pay the rent of the apartment she was living in during her time in California. While a sublease is beneficial for the tenant, it is also beneficial for the landlord as well. The landlord gets to receive the one year payment and do not have to go through the trouble of finding another tenant. Also, the sublease document and form means that the old tenant, Carol, can get her apartment back once she moves to California again. But, for this action, she would have to renew her lease agreement.

Downloadable Templates:

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What is the Difference Between a Lease and a Sublease Form?

A lease and a sublease document are legal documents that specify the obligations, rights, terms and conditions of the occupants and the landlord of the rental property. Both of them are not interchangeable as both of them have different purposes and can be used in different situations and ways. Check out how both of them are different from one and another.

Contract Terms

Sublease and lease documents have fixed terms and both of them have different conditions. Typically, a lease agreement is of a longer term compared to a sublease form. It is of one year or longer while the duration mentioned in a sublease agreement form may only last for a few months only.

Contract Parties

The contract parties in a lease agreement and sublease document are also different. A lease agreement involves a tenant who rents the property and a landlord who actually owns the rental property. In case of more than one tenant, all of them are responsible to sign the agreement. However, in a sublease contract, the parties involved include the original tenant, whose name is on the lease document, and the subtenant, who wishes to temporarily live in the rental property in lieu of the original tenant.

Responsibility for Rent Payment

Like the other requirements in both the agreements, the sublease and lease contract have different responsibilities pertaining to the payment of rent. A lease contract requires the tenant to pay the rent to the landlord but a sublease agreement requires the subtenant to pay to the tenant, and then the tenant is responsible is to pay it to the landlord.

What You Need to Know Before Subleasing?

If you are relocating, then you may be thinking to opt for a sublease agreement form as it can benefit you while you are away from home. But before you sublease it to another party or a subtenant, you need to know a few things. Read the elements below to understand some important things prior to subleasing.

Check If You Are Allowed To Do It

A sublease contract is actually between a tenant and a subtenant. Before opting for a sublease agreement, you need to make sure if you are permitted or allowed to sublet the rental property or not. This permission is granted by the landlord themselves. If they do not feel comfortable providing you a sublease option, then they will not mention it in the first place. On the other hand, if they are, they will mention it. Often, there are certain landlords who permit a certain amount of space to be subleased, in case they do not provide permission to sublease the whole rented area. You are only allowed sublease the space you are permitted to or else, the landlord has the right to cancel the lease agreement.

Find a Potential Subtenant

After checking whether or not you are permitted to sublease, the next step is to find a suitable candidate. To find a potential subtenant, you need to ensure that the person is reliable and trustworthy. To find a good subtenant, you also need to ask your landlord about the type of sub-renter they want. Also, you need to see the requirements of your subtenant in order to ensure that they are compatible with the place.

Choose the Amount to Charge

If you have planned to sublease the house, you may not necessarily receive the same amount of rent you are currently paying for the space. Therefore, you may not get rent which is equal to or more than the amount you are liable to pay. If you receive less rental payment, then you have to pay the rest of the amount from your pocket.

Finalize the Arrangement

When you sublease your apartment to the subtenant, they may want you to make some changes to the structure of the rental property for their accommodation. The changes you will make will not add up in the cost of the rent. Just like you make structural changes in the apartment, you are responsible for any damage done to the apartment.

Taking money beforehand from the subtenant can put you at a relief. Also, it is necessary to take this precaution when giving the apartment to the subtenant. Taking money from the subtenant in advance is actually a sort of security deposit from the subtenant for the expected or future damages that may occur. You need to mention and spell out clearly what comes under damages and what does not.

What is Included Under a Sublease Agreement Template?

A sublease agreement form is a contract between a subtenant and the original tenant of the house while the lease contract is between a landlord and a tenant. However, a sublease agreement form cannot be signed without the permission of the landlord. A sublease contract involves certain parties and elements in the form.

If you are planning to go on vacations or are leaving your apartment for a few months, you can file a sublease contract to take money from the subtenant and ensure that you do not have to bear the rental payment during your time away. The things written under the agreement must be clearly stated and both parties must understand it properly to avoid any discrepancies and confusions that may occur in future.

Write the Name of the Parties

In the sublease agreement template, you need to ensure that the names of the tenant and the subtenant are mentioned in the contract. Also, the agreement should mention that the agreement is made with the landlord’s permission. This means that the names and addresses of all the three parties would be present in the sublease document. Also, the signatures of the tenant, landlord and subtenant should also be present in the document.

Write Details of the Property

When it comes to writing the agreement, you need to add all the appropriate information about the rental property. You have to add the complete address, street number and the number of the apartment, along with everything else associated with it. Also, if the landlord only allows you to rent a certain portion of the house, you need to mention about it as well. In addition to this, specify the exact location of the area in the house. For example, if your landlord has only permitted you to rent a single room, you need to mention it in the agreement.

Include the Terms and Conditions

In the agreement, you need to specify the terms and conditions of the sublease contract. This section will highlight the dates which will determine the beginning of the lease and the duration of the validity of the agreement. It is very important to include the possession dates to avoid any misunderstanding in the future. Doing this makes it clear when the contractor or tenant needs to renew the lease.

Mention the Rental Rate

This is the amount of the rent on which the deal is finalized. This amount must be negotiated by both the tenant and the subtenant. Also, it should be written in the document to whom it would be given and until when. Normally, the amount of rent is given to the tenant on a monthly basis but if there are some other things that are decided among the parties regarding the rental payment, then they must be mentioned in the document too.

§  Mention About Utility Usage

The usage of utilities should also be discussed in the agreement. These kinds of things may include services that the tenant is responsible for. Utilities may include anything  that is related to the sublease contract.

§  Discuss It With Your Roommates

When you are living with some other tenants in the house, you need to inform your roommates about the subletting plan too. Mentioning about it and including them in your plan will not cause any discrepancies and confusions in future. This can be considered as an act of courtesy as well as your responsibility as a tenant.

§  Signatures

When you are done forming the subleasing contract, you should also sign it in the end. Also, if you are including your partners in the subletting plan, then do not forget to take their signatures as well. Most importantly, you also need to take the signature of the tenant.

Benefits of Subleasing for Subtenants

There are several benefits of subletting an apartment from a subtenenant’s point of view. Have a look at them below;

  • Most of the landlords require tenants to submit a complete rental application highlighting your credit history. However, when a subtenant is renting from a renter themselves, they will not check your credit history.
  • Subleasing is actually for a short term basis, usually less than a year or only six months.
  • This helps you save money on rent as the subtenant usually pays lesser than the renter themselves.

Subleasing contracts are made by many people. This is why many sample sublease agreements are available on the web for free. If you want to avoid making mistakes while writing the subleasing agreement on your own, you can simply download the sublease agreement template from our main website. Good luck!


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