How to Write a Sublease Agreement

If you're ready to sublease your apartment or need to rent out a room in your apartment to someone else, you'll need to get a sublease agreement in order. This is simply a contract that ensures rent is paid on time, rules and timelines are understood, and, in general, that everyone is a happy camper.

Before you start on the sublease agreement, however, you need to get permission from your landlord or building's management company and be sure to get it in writing, so you have a record of it.

Grab your current lease as a reference and get familiar with the following terms. Here's how to write a detailed sublease agreement so there's no confusion between you, the subtenant and the landlord.

Determine how the rent will be paid and when

Be as specific as you can about this process. Here are some questions to think through that will help you craft this part:

• Will rent checks be sent to you or the landlord?
• When should payment be received?
• How will you accept the form of payment?
• If you require a paper check, when do you need it by? (Sending by snail mail may cause delays.)
• If you agree to accept a direct deposit or electronic transfer, how will you issue receipts?
• How much will the subtenant be charged in the event of a late rent payment?
• What are the repercussions if the subtenant doesn't pay rent at all?

Here's an example statement about when rent will be paid: “Subtenant shall pay Tenant monthly rent of $750, to be received by Tenant on the 1st of each month."

Write down the security deposit amount

There are laws around how much security deposit you can charge a subtenant, and those numbers differ by state. For example, in California, the tenant (you) is still required to pay the security deposit and any other fees. If the subtenant fails to pay rent, the responsibility still falls back on you.

You should also list possible reasons for why the tenant would not receive all of the deposit back. It can't be used for minor damage due to normal wear and tear.

Other factors

Remember the last time you rented a car and did the walk-around to inspect the outside of the car for dents and scratches? You need to do the same thing with a subtenant before they move in.

On your sublease agreement, include a list of various areas of the property (including the subtenant's room, hardwood floors, walls, exterior, etc.) and note its condition.

And since you and your subtenant will need to abide by the original lease that you signed, it's important to include this with your sublease. You should also call out:

• Property access permission (storage, parking and other parts of the property)
• General house rules such as quiet times, bringing guests over, smoking cigarettes, etc. (Even if you don't plan on living in the apartment with the subtenant, you still have neighbors, right?)
• Pet policy

Writing a sublease agreement

Here’s a sample letter for when you give notice on your rental. Simply fill in the information in brackets [].

Download a word document of the sublease agreement

Re: Sublease Agreement

Dear [Prospective Subtenant name]:

Thank you for subleasing this unit.

This document outlines the agreement of sublease terms for the apartment located at [full address from lease including apartment number] in [name of building or complex and building number, if applicable], beginning on [start date] and ending on [end date] between the following two parties and no other parties:

[Tenant name] (Tenant)

[Tenant current or permanent mailing address] [City, State, ZIP code] [Email address]

[Subtenant name] (Subtenant)

[Subtenant current or permanent mailing address] [City, State, ZIP code] [Email address]

By signing and returning this agreement, Subtenant approves in advance adherence to the following:

Rent and payment procedure

• Subtenant shall pay a monthly rent of [$X,XXX], to be received by [tenant or landlord] by the first of each month [or another date].
• Subtenant shall send the above payment via [choose payment type, i.e. check, PayPal, Venmo, credit card] to [email or physical address].
• Tenant shall return a receipt or acknowledgment to subtenant within 14 days of payment.
• In the event of late payment, Subtenant shall be charged an additional [$XX], due 14 days after the original payment date, unless otherwise approved by Tenant.
• Should Subtenant be delinquent in payment past the 15th of the month rent is due [or another date], Tenant shall initiate the following procedure: [insert process for failure to pay, previously discussed with Subtenant].
• Subtenant shall be responsible for the following utility payments (if any): [water/electricity/storage/heat/gas/trash/cable/internet/other], to be paid on time and in accordance with the following payment parameters: [explanation of share of utility responsibility and payment procedure].

Security deposit and damages

• Subtenant shall supply Tenant a security deposit of [$XXX] by move-in date.
• Upon conclusion of sublease agreement, Tenant shall inspect premises for damage or misuse (not to include normal wear-and-tear), deduct any appropriate charges from the security deposit (fully explained to subtenant), and return the remainder of the security deposit with interest to Subtenant within 15 days of vacation of the unit.
• The following is a description of the condition of each room at Subtenant move-in and move-out:

Tenant rules

• Subtenant shall have permission to access/use the following parts of the property: [storage, parking, pool, gym, a bedroom, other], but does not have permission to access/use the following: [storage, parking, pool, gym, a bedroom, other].
• Tenant shall provide Subtenant with keys and/or entry access codes via [procedure] by [date]. Subtenant shall return any keys to Tenant upon move-out.
• Subtenant must abide by the following policies and “house rules." Failure to do so may result in forfeiture of a security deposit and/or termination of this agreement:
  • Quiet times: [Fill in as agreed between Tenant and Subtenant]
  • Daytime occupancy limits: [Fill in as agreed between Tenant and Subtenant]
  • Overnight guests: [Fill in as agreed between Tenant and Subtenant]
  • Smoking: [Fill in as agreed between Tenant and Subtenant]
  • Parking: [Fill in as agreed between Tenant and Subtenant]
  • Pets: [Fill in as agreed between Tenant and Subtenant]
  • Mail: [Fill in as agreed between Tenant and Subtenant]
  • Other: [Fill in as agreed between Tenant and Subtenant]

  Lease terms

  • Subtenant also agrees to follow all terms and conditions of the original Tenant lease, which is attached here.
  • Should Subtenant desire to continue occupancy beyond end date listed above, a formal request must be submitted to Tenant at least 30 days prior to the end date, with an agreement at Tenant's discretion.

  This document is to be signed by Subtenant and returned to Tenant by [date] to [email or physical address]. Upon countersignature, Tenant will return a copy of this agreement via certified mail to Subtenant at the above address, as well as provide a copy to landlord or property owner. Subtenant occupancy shall not occur before both parties approve this agreement by signature.

  If any issues arise during occupancy and Tenant is not available, the landlord or property owner can be reached at: [landlord or property owner name or company name, address, telephone number, email address].

  For questions or issues, Tenant can be reached at [phone number/address/email] after [moving day].

  [Subtenant name] [Subtenant signature] [Date] [Tenant name] [Tenant signature] [Date]

  Bottom line

  Renting to a subtenant requires due diligence on your part, which means understanding your state's tenant-landlord laws and being transparent with your landlord and subtenant. Setting the expectations through an airtight sublease is the best way to cover yourself.

  Don't forget to give copies of the sublease agreement to all parties, including your landlord. Just to be extra safe, send the sublease copy via certified mail to confirm they've received it.