Advice for Landlords Using Residential Sublease Agreements with Tenants

If you are a landlord who has agreed to allow a tenant to sublease a property, and you need a sublease agreement, we have just what you need! Our residential sublease agreement template can be easily customized to fit the terms of your sublease agreement.

Below We’ll Cover:

• Important Details to Include in Your Residential Sublease Agreement
• Clauses to Consider Adding
• Mistakes to Avoid
• Links to Additional Resources
• How to Get Your Agreement Signed

When a residential property owner enters into a lease agreement with a tenant the terms of that contract are binding on both parties. Sometimes, however, the tenant wishes to vacate the property early and have a third-party (subtenant) take over the tenant’s obligations under the lease. If the landlord agrees to such an arrangement, that agreement should be set forth in a residential sublease agreement to ensure that the terms of the agreement are clear to all parties.

When creating your residential sublease agreement, be sure to include the following details:

• Contact information for all three parties (landlord, tenant, and subtenant)
• Information relating to the original lease between landlord and tenant
• Start and end date
• Rent amount and payment details
• Deposit details
• Signature of all three parties

Depending on the circumstances of your sublease agreement, you may also wish to customize your residential sublease agreement template by including additional clauses to reflect those circumstances, such as:

• Landlord Right to Reject Subtenant. Just because the tenant is willing to sublease the property to someone does not mean the prospective subtenant is acceptable to the landlord. A clause that allows the landlord to run a background and/or credit check on the subtenant, along with a right to reject that subtenant, is a good idea.
• Exclusions or Exceptions to the Original Lease. If any of the terms of the original lease are not intended to apply to the subtenant, it is imperative that the parties make that clear in the sublease agreement. For example, if the subtenant will not have access to part of the property or if the terms of default are different, make this clear in the sublease agreement.
• Time Frame for Acceptance. It is never wise to leave a sublease agreement open-ended. Instead, include a definitive date by which the parties must sign the agreement, or it becomes void. You can useNitro Sign to get any of your contracts or important documents signed quickly and easily!

Landlord-tenant disputes can easily lead to costly and time-consuming litigation. Having a properly drafted agreement in place when you decide to sublease a residential property is the best way to avoid disputes. To help prevent disputes and to ensure that your residential sublease agreement protects all parties, avoid making common mistakes when customizing your agreement, such as:

• Checking local laws regarding sublease agreements. Subleasing is not allowed in some places. Be sure to check your local laws and regulations before agreeing to enter into a sublease agreement.
• Failing to address the possibility of excess damages. If a tenant damages the property, the deposit may be forfeited, and the landlord can pursue additional damages through the legal system. Be sure to make it clear whether the tenant or subtenant is responsible for additional damages in your sublease agreement.
• Not specifying to whom the rent is to be paid. Make sure it is clear whether the rent is to be paid to the tenant and the tenant pays the landlord or paid directly to the landlord. 
• Leaving out late payment details. Under the original lease, the tenant may have incurred a fee for late payments. If so, who is responsible for late payments in the sublease agreement? Be sure to address this in your sublease agreement.

• How to Write a Sublease Agreement
• Residential Sublease Agreement FAQ
• How to Write a Sublease Contract

Proper execution of any agreement is crucial to ensuring that the terms agreed upon in the agreement will hold up in court should a dispute arise. In today’s digital world, the ability to have your agreement signed electronically is imperative. Once you have customized your residential sublease agreement to reflect the intent of all three parties to the agreement, sending it to the parties for a signature is easy and quick with Nitro.Start your Nitro free trial today.