The circumstance warrants a sublease when the occupant of a specific piece of the property decides to give his or her rights under the lease to another party. Subleases may apply to residential property as well as commercial property.
The owner of the property may need to grant permission to the tenant to sublet the premises, depending on what the original lease of the property says. It is necessary to have a contract in place to protect both the current occupant and the subtenant that defines the rights and obligations of each party.
Because of the high value of the land, commercial tenants can speak with an attorney to draft a sublease agreement. For all interested parties to consent and sign, a residential tenant may draft a sublease.
Terms of Lease
The Subtenant, therefore, agrees to comply with all the terms and conditions of the original tenant lease annexed herein. These terms and conditions are described in a subleased agreement template which can be accessed at CocoSign for free & edited according to your needs.
Here are a few terms you should add to the lease agreements;
- If the Subtenant wishes to continue occupancy past the date of termination alluded to above, a formal request must be made to the Tenant at least 30 days before the date of termination, with an arrangement at the discretion of the Tenant.
- This document shall be signed by the Subtenant and returned by [date] to [email address or physical address] to the Tenant.
- If there are any problems during occupancy and the occupant is not present, you can contact the landlord or property owner at [name of landlord or property owner or company name, address, phone number, email address].
The tenant can be contacted at [phone number/address/email] after [moving day] for questions or problems. You can get a ready to use lease agreement from CocoSign instead of writing them your own. View this site & get started today!
Here are a few things to include in your Lease agreements…
Rent and procedure for payment
The subtenant shall pay [$X, XXX] monthly rent to be paid by [the tenant or landlord] by the first of each month [or by another date]. The subtenant shall send the payment referred to above via [select payment form, i.e. check, PayPal, Venmo, credit card] to [email address or physical address].
The tenant shall, within 14 days of the rent, return the receipt or certificate to the subtenant. In the case of late payment, an additional [$XX] shall be paid to the Subtenant, due 14 days after the initial date of payment, unless otherwise decided by the Occupant.
Should Subtenant be overdue in payment beyond the 15th of the month rent is due [or another date], Tenant shall initiate the following procedure: [insert mechanism for failure to pay, previously addressed with Subtenant].
The subsidiary is responsible for the following payments for utilities (if any):
[water/electricity/storage/heat/gas/trash/cable/internet/other], to be billed on time and in compliance with the following payment parameters: [explanation of the share of liability for utilities and the payment procedure].
Deposit for protection and harm
The sub-tenant shall provide the tenant with a security deposit of [$XXX] by the date of movement.
Upon completion of the sub-lease agreement, the occupant shall inspect the premises for harm or misuse (not including usual wear-and-tear), deduct from the security deposit any necessary fees (completely clarified to the sub-tenant), and refund the remainder of the security deposit with interest to the sub-tenant within 15 days of the unit’s vacation.
Laws for tenants
The Subtenant is allowed to access/use the following parts of the property: [storage, parking, swimming pool, gym, bedroom, other] but is not authorized to access/use the following parts of the property: [storage, parking, swimming pool, gym, bedroom, other].
The tenant shall provide the subtenant by [procedure] with keys and/or entry access codes by [date]. Upon moving out, the subtenant must return any keys to the occupant.
The subtenant must comply with the following policies and “house rules.” Failure to do so can result in a security deposit being forfeited and/or this arrangement being terminated:
- Quiet times: [Fill in with Tenant and Subtenant as agreed]
- Limits for daytime occupancy: [Fill in as agreed between the occupant and the subtenant]
- Guests staying overnight: [Fill in as agreed between tenant and sub-tenant]
- Smoking: [Complete the arrangement between the occupant and the subtenant]
- Parking:[Fill in as agreed between tenant and subtenant][Fill in as agreed]
- Animals: [Fill in as agreed between tenant and subtenant]
- Mail: [Fill in the Tenant and Subtenant Agreement]
- Other: [Fill in with Tenant and Subtenant as agreed]
It takes due diligence on your part to rent to a subtenant, which means understanding the tenant-landlord laws of your state and being open with your landlord and subtenant. The easiest way to protect yourself is to set the requirements through an airtight sub-lease.
Don’t forget to give both parties, including your landlord, copies of the sublease agreement. Just to be extra careful, to confirm that they have received it, send the sublease copy via certified mail.