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Sublease Agreement: What is it?

A sublease agreement is a written agreement between a renter (referred to as the Master Renter or Master Tenant) and a third person (referred to as a subtenant) who wants to use the apartment, condo, or rental house. Before a sublease agreement is executed, the original renter should either have an executed rental agreement that does not forbid subleasing or written permission from the landlord to sublet the property.

The sublease agreement is entered into between the original renter and the person who will use the property while the renter isn’t there. A sublease agreement should include most of the main provisions that are in the original lease agreement (generally referred to as the Master Lease). Doing this ensures that the third party understands the duties they have toward the property owner in the care and maintenance of the property. This includes the amount of the rent, when it should be paid each month, to whom it should be paid, how the third party may request maintenance on the property, whether pets are allowed, and the length of the sublease agreement.

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Contents of A Sublease Agreement

The sublease agreement should also include:

  • Whether the subtenant will be obligated to perform any upkeep on the property
  • Will the subtenant be responsible for certain expenses?
  • Whether the subtenant will have the obligation to restore the property to its original condition at the end of the sublease or even at the end of the Master Lease (if the sublease extends to the end of the Master Lease period)
  • If the subtenant has any insurance obligations related to the property
  • Whether the subtenant needs the permission of the Master Landlord to make any changes or improvements to the property

The sublease should be signed and dated by both the Master Tenant and the subtenant. They should each keep a copy of the document. This is important in the event of a legal dispute between the two parties. Additionally, the two parties should also have a copy of the Master Landlord’s permission for the subleasing to occur. This can help protect both parties in the event of a lawsuit. The Master Landlord should also receive a copy of the signed and dated sublease agreement for their records.