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3 Tips for Subleasing Property

Subleasing is an arrangement between an existing tenant and a third party where the tenant agrees to lease the property to the third party despite having an existing lease agreement with the property owner. A sublease contract transfers the rights of the property to the third party but does not alleviate the responsibilities of the tenant toward the original lease agreement. Regardless of what is stipulated in the sublease contract, the original tenant must still abide by the terms and conditions laid out in the original lease agreement.

Utilize a Proper Screening Process

The first step in subleasing a property is to determine whether or not the arrangement is acceptable to the property owner. Many landlords expressly prohibit subleasing their property to a third party and they will place that stipulation in the original lease agreement. Assuming that the landlord approves of the sublease arrangement, it is important for the original tenant to utilize a proper screening process to ensure that a suitable third-party tenant is found. The same amount of care should be taken to screen prospective sublease tenants as the landlord utilized to screen the original tenant.

It is important to remember that the tenant will be held liable for the actions of the sublease tenant.

Use Proper Documentation

It is important that the sublease arrangement is a completely open and officially documented process from start to finish. The prospective third-party tenant should fill out a rental application just as the original tenant did. A sublease contract should also be completed by all parties in order to protect the interests of both the original tenant and the sublease tenant and ensure that the landlord is completely aware of the situation and approves of it. Many times, landlords will require an additional deposit from the third-party tenant depending on the situation.

Clarify the Length of Term

As The Space Place explains in detail, a sublease contract is similar to the original lease agreement except the term of the sublease can vary according to what is agreed upon by the parties. Many times, sublease contracts are utilized to lease out apartments or condos during seasonal periods where the original tenant will not occupy the property but does not want to lose their original lease. Sublease contracts are popular with student housing and with condos that are used only during certain times of the year.