How to create a sublease agreement

When renting out some of your own rented space to another tenant, you need a sublease agreement.

We’re going to explore exactly how to create a sublease agreement.

This agreement should set out the terms of the lease, including things like how much the monthly rent payments will cost, the sublease end date, and grounds for eviction.

How to write a sublease contract

This very simple sublease agreement template demonstrates how to draw up a sublease contract.

It’s important that you describe the property and state its location.

Include the names of the sublessor and sublessee and important dates, such as when the subtenant can move in and must move out.

Also, state the cost of rent and any associated fees or deposits.

1. Provide a description of the property

Both parties must be clear on what’s being paid for.

Describe the property, including things like furnishings and the part of the property that the subtenant will be using.

2. Add the names of the tenant and subtenant

Full names and contact information of both the original tenant and the subtenant keep all parties available and accountable.

3. Lay out the terms

Generally, the terms will include the lease term, which is the move-in and move-out dates (the term of the sublease shouldn’t exceed the term of the head lease), and renewal options.

It may also be useful to reference the original rental agreement.

4. Discuss any additional information 

There may be additional terms that aren’t covered in the original rental agreement.

For example, the sublessor may be only renting the space for certain days each month.

So, it’s worth discussing things like access on days when the sublessor isn’t in residence.

5. Decide the amount of rent

State how much rent the new tenant will pay, how they should pay it, to whom they’ll pay it, and whether it should be paid weekly or monthly.

6. Determine the security deposit amount

A security deposit helps protect against damage outside of reasonable wear and tear.

Detail damages that could cause loss of deposit and how you’ll refund the deposit at the end of the sublease.

7. State any late fees

Will the sublessor be charged fees if they’re late with the rent?

If so, state these fees and the terms under which they’ll be charged.

8. List the policies and/or conditions

This section can get pretty long, but it’s worth writing everything down!

Think about the terms and conditions of the tenancy, including things like your pet policy and smoking policy.

9. Get the landlord’s consent

For the sake of your landlord-tenant relationship (and to avoid possible repercussions!), it’s best to get your landlord’s consent before bringing a new tenant into your rental property. 

Depending on the nature of the property, you may also need to make a lead-based paint disclosure. If applicable, include this in your original rental agreement.

How to create a sublease agreement without the landlord’s knowledge and should you do so?

Subletting without your landlord’s permission is a tricky area, legally speaking.

Whether or not you’re within your legal rights to form a sublet agreement without your landlord’s consent depends a lot on your state laws and the terms of your original lease agreement.

If your lease agreement states that you can ask your landlord for permission to draw up a sublease agreement form and bring someone else into the property, the landlord will need to have a very good reason to refuse.

However, if subletting is either refused or not mentioned in the master lease, your landlord will be on steadier legal grounds to deny permission to sublet.

If subletting is against the terms of your rental agreement, your landlord may even have cause to evict you—especially if you have a residential lease.

If you want to sublet and aren’t sure that your landlord would give them permission, it may be a good idea to contact a law firm and get some legal advice.

Is it illegal to sublet without a contract?

While it’s not illegal to sublet without a contract, it’s not advisable.

Real estate is a complicated enough business without adding a lease-free tenant to the mix!

A sublease contract doesn’t have to be complicated. If it helps, think of it as a roommate agreement.

It’s there to make sure that everyone is on the same page, from renter to landlord, and that everybody knows exactly where they stand.

A sublease agreement protects both you and the new tenant for the duration of their occupancy. It clearly delineates terms and expectations.

It also gives all parties a solid, legal document to fall back on if things go wrong. 

When it’s done right, a sublease agreement is legally binding.

While we hope that you don’t have to invoke the law regarding a sublease agreement, it’s useful to have the option should you need it.

Customize your sublease agreement with PandaDoc

With PandaDoc, it’s very easy to create a sublease contract.

Browse for a sublet agreement template, and use it to build and customize the perfect sublease agreement without any hassle.

Sublease agreements are essential for getting a new tenancy off to a good start.

It’s always best for every party to be totally clear about where they stand, including what’s being paid, how it should be paid, and any other relevant terms and conditions before you bring someone new into a rented space.

While it might also be a good idea to get legal advice to make sure that your terms and conditions are all legal and above board, PandaDoc makes it very simple to draw up and sign your sublease agreement.

Browse our free sublease agreement templates today!