What are Sublease Agreements?
A sublease agreement is a legally binding contract between a tenant and a third party for full or partial use of the property. In this case, the tenant already has an existing lease agreement with the property owner and sublet the property to another third party. This can be so they can get out of the rental without facing any breaches or penalties. Alternatively, it could be a way to supplement their income.
A sublease agreement can be challenging to set up from scratch. There are so many important aspects and clauses that need to be included, not to mention certain state-specific information. Using a sublease agreement template like the one from PandaDoc offers the ideal starting point.
Types of Sublease Agreement Templates
Let’s take a look at a couple of types of sublease contracts you’re likely to come across.
Residential
A residential sublease agreement is a legal contract between a tenant and a third party to use a residence. Residential sublease agreements are typically used when the property is a house, apartment, condo, or even between roommates to sublease a single room.
Commercial
A commercial sublease agreement is used when a tenant wants to sublet part of an entire commercial space. This includes office space, retail space, or industrial space. Any space designated and used for business purposes would qualify under a commercial sublease agreement.
Commercial Sublease Agreement Template
Used 4,901 times
To sublease your commercial property to a third party, use this template for a commercial sublease agreement. Although this agreement is intended for subleasing a building or shop space, it can be changed to accommodate various circumstances.
Vehicle
Whether you’re a vehicle owner looking to temporarily share your asset or a potential sublessee seeking a transparent agreement, this template provides a structured and legal foundation for a smooth subleasing process.
Vehicle Sublease Agreement Template
Used 4,872 times
Sublet a leased vehicle using this free and fully customizable vehicle sublease agreement template.
State-Specific Sublease Agreement Templates
Numerous state and municipal laws can affect a tenant’s right to sublease. Some state laws even allow tenants to sublease a property under certain conditions, even if the owner and original lease prohibit it. When writing your sublease agreement, ensure you use the template with state-specific considerations.
How to Create Your Sublease Agreement with PandaDoc
When writing a purchase/sale agreement, providing a detailed description of the property and details on the terms and conditions applied is crucial. Any other information pertinent to the agreement, such as applicable warranties, won’t hurt to include as well. If no lawyer can revise your documentation, using well-drafted agreement templates always makes solid sense.
Our templates are pre-made documents that save you time and money by providing a standardized format containing the basic information required to complete any agreement. The templates help you ensure that your agreement is legally binding and accurate to avoid mistakes or misunderstandings regarding the transaction.
Using our sublease agreement templates is a simple process. First, start by choosing the agreement that best suits your needs. Then click on the green ‘Use Template – Free’ button to open the sublease agreement. Follow the next few steps to customize this sublease contract to your needs:
Step 1: Add the Details of Both Parties
Complete the full names and addresses of all relevant parties. Since this is a sublease agreement, you should also include the details of the Landlord.
Step 2: Define the Rental Term
Specify the rental term of your agreement by adding the commencement date and the last term date. You should also include what the process is to renew the agreement.
Step 3: Specify the Payment Details
Define the rent that must be paid and when the payment must be made. You should also include what payment types you accept and provide the account details for payments.
Step 4: Outline Utility Contributions
Specify who’s responsible for paying the utilities. If you plan on splitting the utilities, you need to provide a breakdown of how this split will be calculated.
Step 5: Cover Maintenance Requirements
Specify any maintenance requirements and how any issues should be reported.
Step 6: Incorporate Applicable Laws
States regulate their own lease agreements and may require different clauses on a lease agreement. As such, make sure to check your state for any specific clauses that need to appear on your agreement.
Step 7: Add Additional Clauses
Add any additional clauses you feel are relevant to the agreement or that are required by local law.
Step 7: Add Required Addendums
A sublease agreement must have a copy of the original lease attached as an addendum. Apart from this, you might also want to add any other appendices that might be relevant to your situation.
Step 8: Sign and Date
The final step is to ensure that all parties are happy with and understand the terms of this agreement. Then, it should be signed and dated to make the contract legally binding. Once signed, each party needs to keep a copy with them.
Subletting Laws and Permissions
Most states in the US have no specific sublease laws, however, there are some that govern their own lease and sublease agreements. As such, there are a number of specific legal requirements and restrictions you need to know before writing your agreement in these states.
States with Specific Subletting Laws and Permissions
| State | Tenant is Allowed to Sublet | Subletting Requires Permission | Landlord can Disallow Subletting | ||||||||
| NY | Only if the property has four or more rental units. | ||||||||||
| California | ✓ | ||||||||||
| Texas | ✓ | ||||||||||
| Florida | ✓ | ||||||||||
| Illinois | ✓ | ||||||||||
| Pennsylvania | ✓ | ||||||||||
| Ohio | ✓ | ||||||||||
| Virginia | ✓ | ||||||||||
| Nevada | ✓ | ||||||||||
| Colorado | Must be stated in the lease agreement |
Source: Propertydo.com
Master Lease
When subletting a property, the master agreement is still in full effect. This means that any subtenants will be held to the same responsibilities as set out in the master lease. This will not be enforced by the landlord, but rather the sublessee. As such, it’s very important to ensure that a copy of the master agreement is attached as an addendum to the sublease agreement to avoid any confusion.
