When you rent a property, for example an apartment, you rent it thinking you will live in it until your contract with the landlord comes to an end. However, there are things that you can never tell and it might urge you to change your general plans. So instead of living in the apartment until the lease expires, you end up going to another place until a certain period of time.
Therefore, you will have to leave the apartment until your travels are completed, but you also still want to have a place to return to once you come back. So, how will you be able to pay the rent if that is the case? This is where a sublease agreement comes in handy.
When you, as the formal tenant, want to travel or leave the apartment temporarily, you have to think of ways on how you can keep up with the apartment rent.
Even though you don’t live in the apartment for a while, you still have to pay the monthly rent as if you still live there, and that’s normal. You have signed a lease agreement or contract prior to owning the place, therefore, you understand what it entails to owning the place. A good way to solve that rent problem is through subleasing the apartment. Now, you may wonder what subleasing means and what do you need to do to sublease your unit; well, this guide is here to answer some of your questions in order to help you sublease your rented property.
A sublease agreement is a legally binding document between a tenant and a subtenant with the appropriate consent from the original landlord.
This commercial agreement is used by the tenant to lease a portion or the entire premises of his/her rented property to a third party for the remaining or a portion of the remaining term of the lease. With this agreement, the original lessee or tenant becomes the landlord/sub-landlord or lessor. In addition, this agreement describes the rights and responsibilities of the subtenant as well as the rights and responsibilities of the sub-landlord during the sublease term.
This residential sublease agreement is also called a Sublet Agreement or a Sublease Contract or a Sublet Contract, and lastly, a Room Rental Agreement. Although there are leases that prohibit the tenant from subleasing the rented property, there are also properties that do and there are both residential and commercial sublease agreements. However, the original tenant will remain responsible to the original landlord despite having a sublease agreement prior to the subleasing.
A sublease often occurs when the original tenant has to relocate temporarily during the lease term or even when the tenant still lives in the rented property, he/she can sublease a portion of the premise day a single room.
For a commercial sublease, a business tenant subleases the rental space to a subtenant; however, the current lease with the landlord or property manager should still remain intact, just like in a residential sublease. Both of these sublease agreements have no authority to prohibit or invalidate the terms within the original lease. The obligations of the original tenant, or sub-landlord or lessor are retained to the landlord. You may also see management agreement examples & samples.
In addition, the original tenant, or sub-landlord or lessor is to be held responsible for damages or lease violations by the subtenant.
The sublease agreement lay out the terms, conditions, responsibilities, and obligations of both parties involved. It puts into details all the information needed for the sublease to be deemed effective.
For example, it includes a copy of the original lease, states the sublease requirements such as proof of identification, proof of income, etc. It also states the payment rate and the frequency of the payment and any other additional terms of the lease deemed relevant by the parties. You may also like service agreement examples.
In order to make and understand a sublease agreement, you also have to get to know and understand the roles and responsibilities of all the parties involved in a sublease agreement. Even if it is a residential or commercial sublease agreement, these three primary parties are the most important parties involved in a sublease agreement:
the landlord owns the residential or commercial rental property. He/She is responsible for managing the property and is also responsible for offering a lease to the lessee. The landlord is also responsible for giving permission to the tenant or sub-landlord to have the property on a sublease. You may also see letter of agreement examples.
he/she is the original tenant. He/She was the person who entered into a lease with the landlord. Once he/she puts the entire or portion of the property into a sublease, he/she becomes the sub-landlord to the subtenant.
he/she is the person who is entering into a lease with the sub-landlord to temporarily rent all or part of the property. He/She pays the rent to the sub-landlord as well as report any lease or property issues to the sub-landlord. The relationship of the subtenant is with the original tenant/sub-landlord and not to the original landlord. You may also like partnership agreement examples & samples.
For a sublease agreement to be effective, it must include all the relevant and necessary information needed for a subtenant to understand the said basic agreement. It also must state and clarify some of the terms so that confusion and misunderstandings can be avoided. Here are some of the most relevant and necessary information you should include in a sublease agreement:
A head lease is basically the primary lease signed by the original tenant and the landlord. It details all the roles and responsibilities that must be fulfilled by both the tenant and landlord. In this lease, all the contractual responsibility is given to one identifiable tenant called the head lessee.
In most leases, a tenant has the ability to sublease the entire or a portion of the property. Meanwhile, a sublease agreement is a simple agreement made between the tenant and a third party also called as the subtenant. The sublease agreement states terms and conditions about leasing a rented property or a portion of the rented property. Ultimately, the responsibilities for the property remains to be with the tenant and landlord.
1. The landlord or the lessor in the head lease will always remain superior than the sub-landlord or the original tenant.
2. A sublease is predicated or a subset of the tenant’s rights under the head lease.
3. The head lease holds more authority than that of a sublease agreement.
4. If the head lease is terminated, the sublease will also be terminated unless the subtenant has a non-disturbance agreement. You may also see what is a business agreement?
5. The head lease prohibits the sub-landlord to create any building value or economic future value.
6. A sublease is only between the sub-landlord and subtenant but still needs approval from the original landlord.
Therefore, a sublease agreement is a necessary document should you decide to have a third party rent out a property you have already rented. It clarifies and defines the relationship between the landlord, sub-landlord, and subtenant. It also explains all the terms, conditions, and obligations each party involved has to fulfill during the sublease term. You may also see subcontractor agreement examples.
It helps protect the rights of the subtenant as well as the welfare of the original landlord and sub-landlord. We hope that this guide has helped you understand all about a sublease agreement.