The world of property renting can be quite complicated. It is full of documentation, legal contracts, and rent agreements. The sub-lease agreement is one such legal contract.
In this article, we will cover everything there is to know about sublease agreements and how you can go about drafting them. With this article, you can acquire the necessary knowledge to understand a sublease contract and create your legal document through online digital documentation tools.
What Is a Sublease Agreement?
Legally speaking, a sublet agreement refers to a contract signed between two or more parties. It includes details such as the duration of the agreement and the money involved. The document is created by the original lessee/tenant who wishes to rent out the property to a sub-tenant or sub-lessee. It is crucial to make a contract that is suitable for all the parties involved to reduce the chances of risk and legal troubles. These are some of the important legal terms used in the contract:
- The sublessor/tenant: they are the original tenants of the property who are looking to rent out the property
- The sub-lessee: they are the ones seeking to take the property on rent from the sub-tenant.
- Premises: refers to the property in question.
A sublease contract depends on whether it is legally allowed for the original tenant to sublease their property. In case it is legally allowed, the original tenant is still liable for the terms and conditions of the original rent agreement.
When Is A Sublease Agreement Used?
A sublease contract is used when an individual wants to sublet a rental property. This legal contract is used when the original tenant of the property wishes to sublet their premises for a particular time. The owner of the property generally has to approve the sub-leasing contract for it to be enforced. The process of sub-leasing is subject to laws and regulations pertaining to a particular area or region.
For instance, in New York, subleasing is generally used when the original tenant is renting more than four units in a building. In this case, the original tenant can sublease the units under their tenancy to others with a simple sublease contract.
Key Elements Of A Sublease Agreement
Now that you know what and when a sublease contract is used, let’s understand the clauses involved in the contract. Following is a brief of the terms and conditions written in the contract:
- The sublease has a strict starting and ending date. Any extension has to be written into the contract separately. The rent will be decided between the parties and paid accordingly per month.
- All payments related to utilities need to be paid for by the sub-lessee. The rent has to be paid via check or any other payment method agreed upon between the parties.
- Once the sublease duration is over, the sub-lessee must vacate the property in the condition it was rented out in. Any damage will be paid for by the sub-lessee as they are liable for the premises in the duration of the contract.
- The sub-lessee is required to pay a security deposit of a pre-decided amount to cover for any future loss or damage caused by them. The person sub-leasing the property is obligated to return the deposit after a thorough inspection of the premises to check for any damage. The sub-lessee is liable for any property damage that occurs during their tenancy.
- The sub-lessee must make an inventory of all the property within the premises upon acquiring the contract. This is to show proof of acknowledgement of all the things available on the premises.
- The sublease agreement is attached with the original lease agreement signed between the tenant and the landlord. It is attached as reference and acknowledgment in the sublease agreement. It acknowledges that the sub-lessee accepts the original terms of agreement set by the owner of the premises.
- The sublease agreement is binding on all parties once the landlord has approved it. It is the primary document on the sublease, with no modifications being made without the consent of all the parties involved in the agreement.
Consequences of Not Using a Sublease Agreement When Needed?
Using a sublease agreement when subletting a property is absolutely crucial and required by law. It makes sure that both the sublessor and sublessee are protected from legal risks and have proof of agreement for any legal, personal, and professional purposes. Here is a brief on the risks involved for the sub-lessee and sub-tenant:
- The sub-tenants must be aware that they are still legally bound by their original contract to the landlord and have to fulfill their primary obligations. Not being aware of this can lead to legal troubles.
- It is important to draw up a legal contract even if subleasing is common in your area. This helps avoid any future miscommunication or trouble.
- The sub-lessee is in danger of eviction without notice if he or she doesn’t have a sublease agreement to back them up.
- The sub-tenant can lose out on rent and other obligations if there is no formal sublease agreement drawn up among the parties involved.
A sublease agreement is an important document in property renting and real-estate, with real-world applications. While many people engage property lawyers to draw up the sub-lease contracts, this kind of documentation can be drawn up online too. This is where services like CocoDoc come in. With CocoDoc, users have access to multiple sublease agreement templates that help with all kinds of digital documentation and verification.