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Should You Consider the Sublease Contract?

When to Use a Sublease Contract

There are many life events and circumstances that occur that can affect the ability of a tenant to maintain a contractual lease. It is not uncommon for a career change to occur at any time, and it is possible that it becomes much more practical or necessary to seek housing in a different location. There might be a family situation that arises that requires an individual to move closer or be away for prolonged periods of time.

Whatever the situation, there may be a time when a tenant is no longer capable of continuing on with their residential lease agreement, and if the landlord will not let them out of their lease in this situation, it is possible that a sublease contract might just save the day.

What Is Subleasing?

A sublease is when an existing commercial or residential tenant gives away their rights, or a portion of their rights, to the property under the terms of the original lease. As Metropolitan Council on Housing explains, the tenant will sublet the property, or a portion thereof, to another tenant who becomes the subtenant. When this occurs, the original tenant becomes known as the sub-landlord. Subleasing a property can only be accomplished if the landlord is in agreement with the proposed sublease.

Check If Subleasing Is Allowed in the Original Lease

Usually there will be some language in the original residential lease agreement as to whether subleasing is allowed or not. Even if it is not provided for in the original contract, it can still be performed if a written agreement is received from the landlord prior to forming a sublease.

Many times a landlord will be inclined to agree to this in the face of having a tenant default on their lease, which can be time consuming and expensive. This makes the sublease contract an effective manner in which an individual can get relief from their lease without any financial or legal ramifications.

The Original Tenant Maintains Responsibility

Under the terms of the sublease, the original tenant maintains responsibility for the property according to all the stipulations of the original lease agreement. The original lease remains in effect throughout the sublease and the original tenant must still honor the terms of that lease, even if they no longer occupy the property.

Proper Screening of a Sublease Tenant

It is important for the tenant to utilize proper screening when trying to find a sublease tenant, as any liability the sublease tenants create will ultimately fall upon the original tenant.

The sublease basically mirrors the terms of the original lease and cannot be made for longer than that lease, and it is important for all parties to understand that the sublease ends upon termination of the original lease. There is usually a security deposit that is put down by the subtenant that is refundable if no damage occurs to the property.

Useful for Those Who Need to Break Their Lease

The sublease contract can be a very valuable tool for those who either need to break their lease or find they are in a situation where they no longer utilize the property full-time. Often, people who start to travel for a job or need to move back and forth between several different locations find that subleasing is an effective way to maintain a place to live while sharing the costs with a sublease roommate.

This can be very beneficial to the original tenant and can give them the flexibility to accommodate their various living requirements. Subleasing may not fit for everyone, but if a tenant finds themselves in a situation where they may need some relief from their lease, the sublease contract is a definite option to consider.

How to Create a Sublease Contract

Use our customizable residential sublease contract or commercial sublease contract template to create the legal agreement that you need.