Sublease agreement
THIS SUBLEASE AGREEMENT (the “Agreement”) effective from [dd] [MONTH] [yyyy] (the “Effective date”) is entered into
BETWEEN:
1. [INSERT SUBLESSOR NAME] (hereinafter referred to as the “Sublessor”), having its registered domicile at [INSERT ADDRESS],
AND:
2. [INSERT SUBLESSEE NAME] (hereinafter referred to as the “Sublessee”), having its registered domicile at [INSERT ADDRESS],
The Sublessor and the Sublessee shall be referred to in this Agreement individually as a “Party” and collectively as the “Parties”.
WHEREAS, the Sublessor previously entered into a Lease Agreement with [INSERT LANDLORD NAME] (the “Landlord”) on [dd] [MONTH] [yyyy] (the “Master Lease”), a copy of which is attached to this Sublease Agreement as an exhibit; and
WHEREAS, the Sublessor wishes to now sublet the leased property located at [INSERT ADDRESS] (hereinafter referred to as the “Premises”) to Sublessee, and the Sublessee agrees to take the premises described in this Agreement from the Sublessor; and
WHEREAS, both the Parties wish to evidence their contract in writing to set forth their rights and obligations under the Agreement; and
WHEREAS, the Parties have the capacity and are authorized to enter into this Agreement.
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions contained herein, the sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. Subleased Premises
1.1. The Sublessor agrees to sublease to the Premises to the Sublessee for residential purposes only.
1.2. The Premises may neither in full nor in part be used at any time during the Term of this Agreement for the purpose of carrying on any business, profession, or trade of any kind, or for the purpose other than as a private single-family residence.
2. Terms
2.1. The term of the Agreement (the “Term”) will be for a period of [INSERT AMOUNT] months, beginning on [INSERT STARTING DATE] and ending on [INSERT END DATE]
3. Rent
3.1. The Sublessee will pay a total monthly rent of [INSERT AMOUNT AND CURRENCY].
3.2. Rent will be payable in advance in monthly installments of [INSERT AMOUNT AND CURRENCY] due to the [INSERT AMOUNT] day of each month during the Term.
3.3. The first rent payment is payable to the Sublessor when the Sublessee signs this Agreement.
4. Security Deposit
4.1. The Sublessee will pay [INSERT AMOUNT AND CURRENCY] to the Sublessor as a security deposit to cover damages and cleaning.
4.2. Deductions permitted by law may be made from the security deposit and the remainder, if any, shall be returned to the Sublessee within [INSERT AMOUNT] days of the termination of the Sublessee’s tenancy.
4.3. The Sublessee agrees that if the Premises and contents in the Premises are returned to the Sublessor in the same condition as when received by the Sublessee, reasonable wear and tear excepted, the Sublessor will refund to the Sublessee the deposit, or the amount remaining, at the end of the Term, or within 30 days thereafter.
4.4. Any reason for retaining a portion of the deposit will be explained in writing within 30 days to the Sublessee
4.5. The security deposit may not be used as last month’s rent.
5. Default
5.1. The Sublessee has defaulted under this Agreement if any one or more of the following events (the “Event of Default”) occurs:
a) The Sublessee fails to pay the rent to the Sublessor or any amount of it when due or within any grace period.
b) The Sublessee abandons the Premises or uses the Premises for unpermitted or illegal purposes.
5.2. The Sublessor has defaulted under this Agreement if the Sublessor fails to pay rent directly to the Landlord or does anything that results in a termination of Master Lease and does not provide the Sublessor with [INSERT AMOUNT] days’ notice to Sublessee.
6. Remedies to Default.
6.1. In the event of default by the Sublessee the Landlord will provide the Sublessor with written notice of this default and the Sublessor will have full rights to commence all actions to recover possession of the Premises (in the name of the Landlord, if necessary).
6.2. This Agreement will immediately become null and void and the Sublessor will automatically claim right to the Security Deposit.
6.3. In the event that that Sublessee refuses to vacate the premises and is in default, the Sublessor will commence eviction proceedings.
6.4. A Non-Payment Petition and a Notice of Petition will be filed with the local court. The Sublessee will receive copies of the court paper in the form of a service and be required to attend local court.
6.5. In the event of default by the Sublessor, this Agreement will immediately become null and void and the Subtenant will automatically claim right to the Security Deposit.
7. Termination Notice.
7.1. The Sublessee’s tenancy will terminate on the date specified in Section 2 above, unless the Sublessor and the Sublessee sign another written agreement prior to the end of tenancy providing for an additional period of tenancy.
7.2. The Sublessee is not responsible for finding a replacement upon the termination of his/her tenancy.
8. Utility and Telephone Charges.
8.1. The Sublessee agrees to undertake payments for all utilities and other charges connected with the Premises, which are to be paid by the Sublessor under Master Lease. will be paid by the Sublessee during the Term of tenancy accordingly to this Agreement.
8.2. The Sublessee will pay telephone charges in full for which he/she is directly and. individually responsible.
9. Maintenance
9.1. The Sublessee agrees to surrender and deliver to the Sublessor the Premises and all furniture and decorations within the Premises in the same condition as they were at the beginning of the Term. Reasonable wear and tear is expected and shall not result in a deduction of the deposit.
9.2. The Sublessee will be liable to the Sublessor and the Landlord for any damages occurring to the contents of the Premises or to the building which are done by the Sublessee or the Sublessee’s guests.
10. Condition of the Premises
10.1. The Sublessee acknowledges that she/he has examined the Premises and that they are in good condition.
10.2. Upon the termination of this Agreement for any cause, the Sublessee will leave the Premises in the same condition as when this Agreement was entered into. Reasonable wear and tear is expected and shall not result in a deduction of the deposit.
10.3. The Sublessee is responsible for the repair of any damage resulting from the act or neglect of Sublessee or those persons who are invitees of the Sublessee.
11. Property Improvements
11.1. The Sublessee shall require prior written consent from the Landlord and the Sublessor that might affect the Landlord or Sublessor original setup, arrangement, configuration, format, or layout before proceeding on the improvements intended or planned by the Sublessee.
12. Master Lease
12.1. In addition to the provisions of this Sublease Agreement, the Sublessee agrees to be bound by all the conditions of the lease between Sublessor and the Landlord, [INSERT THE NAME OF MASTER LEASOR] (the “Master Lease”).
12.2. The Master Lease is attached to this Sublease Agreement for reference.
12.3. The Terms of the Master Lease are hereby incorporated into this Sublease Agreement.
12.4. No representation that is not included here or in the Master Lease shall be binding upon the Parties.
13. Termination of Master Lease
13.1. If the Sublessor terminates the Master Lease, the Sublessor will provide [INSERT AMOUNT] days’ notice to Sublessee.
13.2. The Sublessee agrees that if the Master Lease is terminated for any reason, this Agreement will terminate as of the same date.
14. Subleasing and Assignment
14.1. Sublessee may not lease, sublease, or assign the Premises without the prior written consent of the Sublessor.
14.2. Any attempted assignment or delegation in contravention of this provision will be void and ineffective.
15. Notices
15.1. All notices given under this Agreement must be in writing.
15.2. A notice is effective upon receipt and shall be sent via one of the following methods: delivery in person, overnight courier service, certified or registered mail, postage prepaid, return receipt requested, addressed to the Party to be notified at the below address or by facsimile at the below facsimile number or in the case of either Party, to such other Party, address or facsimile number as such party may designate upon reasonable notice to the other Party.
15.3. Such notices shall be effective upon receipt of a written acknowledgment by the Party to which notice is given:
a) To Sublessor:
Address: ______________________________________________________________________
b) To Sublessee
Address: ______________________________________________________________________
16. Governing Law and Jurisdiction
16.1. The validity, interpretation, and enforcement of this Agreement, matters arising out of/or related to this Agreement or its making, performance or breach, and all related matters shall be governed by and construed in accordance with the internal laws of [INSERT A COUNTRY’S LAW] excluding its conflict of laws rules.
16.2. Any legal action or proceeding concerning the validity, interpretation, and enforcement of this Agreement, matters arising out of/or related to this Agreement or its making, performance or breach, or related matters shall be brought to the competent jurisdiction located in the [INSERT RELEVANT JURISDICTION].
16.3. The courts of the [INSERT RELEVANT JURISDICTION] shall have exclusive jurisdiction over any disputes.
17. Severability
17.1. Each of the paragraphs contained in this Agreement is unique and severable.
17.2. In the event that any section, provision or part of this Agreement shall be held to be invalid or unenforceable for any reason, the Parties agree that such invalidity will not affect the validity of the remaining provisions of this Agreement, and shall continue to be valid and enforceable and further agree to substitute for the invalid provision with a valid provision, which most closely approximates the intent and economic effect of the invalid provision.
17.3. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
18. Liability
18.1. The Sublessor is not responsible or liable for any loss, claim, damage or expense as a result of any accident, injury or damage to any person or property occurring anywhere on the Premises, including but not limited to Sublessee and invitees of Sublessee, unless resulting from the gross negligence or willful misconduct of Sublessor.
19. No Waiver
19.1. Neither the Sublessee nor the Sublessor shall be deemed to have waived any provision of this Agreement or the exercise of any rights held under this Agreement unless such waiver is made expressly in writing.
20. Assignability and Parties of Interest
20.1. No Party may assign, directly or indirectly, all or part of its rights or obligations under this Agreement without the prior written consent of the other Party.
20.2. Nothing in this Agreement, express or implied, will confer upon any person or entity not a party to this Agreement, or the legal representatives of such person or entity, any rights, remedies, obligations, or liabilities of any nature or kind whatsoever under or by reason of this Agreement, except as expressly provided in this Agreement.
21. Entire Agreement
21.1. All preliminary negotiations between the Parties are merged into, and superseded, by the terms of the Sublease Agreement.
21.2. This Sublease will not be enforceable until signed by both Sublessee and Sublessor.
21.3. Any modification to this Agreement must be in writing, signed by both Sublessor and Sublessee.
21.4. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same document.
22. Declaration
22.1. The Parties hereby understand and expressly agree to the provisions laid down in the present Agreement and in good faith, undertake that both Parties shall follow the terms of this Agreement in good conscience in order to secure better growth of both the Parties.
IN WITNESS WHEREOF, the Parties hereto have caused this Sublease Agreement to be executed as of the date stated above.
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What is subletting?
Subletting, or subleasing, occurs when a tenant rents out a room or apartment they are already renting to someone else.
For instance, if you live in a 2-bedroom apartment with a friend and they move out, you might rent out their room while keeping yourself as the primary leaseholder. The person you rent to is called the "sublessee" or "subtenant," while you, the original tenant, are the "sublessor." Although the subtenant pays you rent, you remain responsible for paying the landlord and maintaining the property.
While "sublease" and "sublet" are often used interchangeably, "sublet" usually refers to residential apartments, while "sublease" traditionally refers to commercial property. "Relet" is another term that involves signing a new lease with a new tenant, with both the original and new tenant sharing responsibility for rent and property upkeep.
Need a private tenancy agreement instead? Click here for free access.
What is the difference between a lease and a sublease?
The distinction between a lease and a sublease lies in their parties: a lease involves the landlord and tenant, while a sublease consists of the tenant and sub-tenant.
What is a sublease agreement?
A sublease agreement gives tenants the green light to rent their space to someone else, called a subtenant. It's like a rental within a rental.
But here's the catch: tenants need the thumbs-up from their landlord before they can play landlord. And remember, the sublease can only stretch past the original lease term with the landlord's approval. So, while subletting sounds like a sweet deal, it's essential to play by the rules to avoid any lease drama down the road.
A sublease happens in two main scenarios:
- When a tenant tries to end their lease early, but the landlord says no, the tenant turns around and rents the place out to someone else until the original lease ends.
- When a tenant wants to stick around and share the space, they rent out a room to someone else.
When should you sublet your property?
Subleasing is ideal for commercial renters with excess space or renters who will be away for an extended period, such as for travel or business. It allows them to avoid hefty termination fees and ensures their space is used.
Even if you’re subletting to someone you know, it's crucial to have a formal agreement to protect both parties legally and ensure accountability.
Who's responsible for the lease?
The original tenant remains responsible for fulfilling lease obligations, including rent payments and property damages. Subletting entails some level of risk, underscoring the importance of a comprehensive sublease agreement to mitigate potential liabilities in the future.
What to include in a sublease agreement?
- Contact information: Include names, phone numbers, email addresses, and the rental address for both parties.
- Original lease agreement details: Provide a copy of the original lease for reference.
- Monthly rent: Specify the rent amount and payment method.
- Lease term: Outline the start and end dates of the sublease, including any renewal options.
- Security deposit amount: Explain the deposit requirement and refund process.
- Late fees: Define fees for late rent payments and eviction conditions.
- Policies: List rules for smoking, pets, parking, guests, and property access.
- Landlord's consent: Ensure landlord approval is obtained for the sublease.
- Utilities: Clarify which utilities the subtenant is responsible for.
- Furnishings: Detail any furnishings or amenities included.
- Paint disclosure: If applicable, disclose information about lead-based paint and other relevant disclosures.
Are you not sure? It's advisable to seek legal advice to ensure your sublease agreement is legally sound and covers all necessary aspects.
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This sublease agreement outlines the terms under which the Sublessor is subletting their leased premises to the Sublessee. It covers the sublease term, rent payment, security deposit, maintenance responsibilities, termination conditions, and incorporation of the original master lease terms. The agreement aims to protect both parties' rights during the sublease period.
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