Residential Sublease Agreement

Residential Sublease Agreement Template_1 on iPropertyManagement.com

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.

Mary has a three-bedroom apartment and isn’t using the third bedroom. She wants to rent it to someone with her landlord’s permission. She becomes a sublandlord, and the person she rents her third bedroom to is the new subtenant.

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.

Most states don’t allow a sublease to extend beyond the length of the master lease agreement. That means that if the master lease ends on July 31, the sublease must also end on July 31 or sooner.

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:

How to Sublease a Rental Property

To complete the sublease process tenants need to:

  1. Ask Permission from the Landlord
  2. Complete Subtenant Screening
  3. Put the Agreement in Writing
  4. 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.

If a state’s rental laws don’t address subleasing, a tenant is typically allowed to sublease unless the rental agreement specifically prohibits it.

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.

Frequently Asked Questions

Do You Have to Get Your Landlord’s Permission in Order to Sublease? Not always—it depends on which state the rental unit is in and the provisions of the master lease agreement. However, it’s a good idea to at least notify the landlord, so everyone is on the same page. Read more » Do You Have to Pay to Submit a Residential Sublease Agreement? No state requires a fee, but no state prohibits one, either. When in doubt, look at what others are paying in your area for a similar property to see if any fee charged is reasonable. Read more » Who Can Terminate a Residential Sublease Agreement? The subtenant, tenant, or even possibly the landlord, depending on the terms of the master lease and/or state law. Read more » Does a Subtenant Have to Follow the Terms of the Master Lease Agreement? Yes, the subtenant must follow the terms of the master lease agreement, which is why we recommend that the sublease includes a copy of the master lease. Read more »

Other Sublease Related Links

Room Rental Agreement

Month-to-Month Rental Agreement