When the tenant of a certain property wishes to grant lease rights to another person, this situation requires a subletting agreement. The sublease can be adapted to both residential and commercial properties. Depending on what was stated in the original property agreement, the landlord may give the tenant permission to sublet. To protect both the current tenant and the sub-tenant, it is important to develop a contract that describes each party's rights and responsibilities. Commercial tenants should speak to an attorney to draft a sublease agreement due to the high value of the property. A residential tenant can write a sublease agreement for all parties to accept and sign.
Steps
Part 1 of 2: Deciding to Sublet
Step 1. Determine if you are allowed to sublet
In most cases, you need to consult with your landlord to make sure you have permission to sublet the place where you live. The landlord almost always has to approve the sublet, just as you went through an approval process yourself when you rented the property. He has the right to deny your request. To sublet, you must always have the owner's written permission.
- Subletting is intended as a temporary measure. For example, if you live in a city to attend college, but come home in the summer because your family lives elsewhere, you could sublet the property you leave over the summer months.
- If the accommodation is not temporary, for example you leave before the contract expires and you do not intend to return to the property, this procedure is called "transfer". This is a different process: basically, you permanently transfer all of your responsibilities to a new tenant. It is not always possible to do this.
- Don't sublet your home without first obtaining the owner's permission. You may be subject to legal action and / or eviction for breaking contractual terms. Incidentally, without the landlord's consent, the sub-tenant himself risks eviction, and can sue both you and him.
Step 2. Collect and provide information on the sub-tenant's trustworthiness
The landlord will be more likely to view the sub-lessee favorably if they demonstrate that they are a trustworthy and responsible individual. As far as your friend is concerned, ask for proof of creditworthiness and letters of recommendation written by previous landlords, if possible.
If you are unsure of the questions to ask, you can discuss them with the landlord
Step 3. Remember that the responsibility for the rented property still lies with you
As the original tenant, you must comply with all terms of the agreement. You are also responsible for any infringements committed by the sub-tenant.
- For example, if your contract has a clause that you will have to forgo the deposit if you smoke in the apartment, the sub-tenant must also comply with it. If you smoke indoors, the responsibility for the damage will fall on you.
- In principle, you become the landlord of the sub-tenant, and you are still responsible for the property, so in case of problems, you are responsible for answering the landlord. For example, if the property is in need of repair, the sub-tenant must request the job from you, and then you will have to forward the application to the owner.
Step 4. Consider how you will handle the security deposit
By entering into a legal agreement with the sub-tenant, you should request a deposit from him. In the event that any property damage occurs, you will be responsible. The deposit will help you protect yourself. Be well informed about the rules regarding bail deposits; for example, they generate legal interest, which is paid to the tenant at the end of each rental year.
- In Italy, by law the amount of the security deposit cannot exceed the sum of three months. If you live elsewhere, the rules are different, so get informed.
- Before the sub-tenant moves, it is advisable to provide proof of the condition of the property. It is not always mandatory, but it is preferable to write it to protect both you and him. You should note specific characteristics about the condition of the property, such as scratches on wooden objects, stains on carpets or rugs, and so on. It must be signed by both you and the sub-tenant.
Step 5. Determine how to pay the rent
Before signing the sublease agreement, you and the subtenant should discuss how to pay the monthly rent money to the landlord. Each of you can do this on your own, or the sub-tenant can give you their share.
- You should also determine the amount of rent that the sub-tenant will have to pay. In general, you shouldn't pay more rent than you are entitled to. In many cases, you can expect to recover 70-80% of your rent from a sublease, unless the home is furnished. In that case, the cost tends to be higher.
- If the sub-tenant only has to pay part of your rent, you may want to prepay the entire amount before receiving their money. This protects it if you are unable or unwilling to continue paying your share. However, if this person breaks the rental agreement, you could lose the money you paid up front.
- Remember one thing: when you and the sub-tenant sign the sublease agreement, you both have to abide by its terms. If the sub-tenant only pays part of your monthly rent, a very common situation, you must continue to pay the difference in order for the landlord to receive the full amount due. If you or the other person don't pay, you will be breaking the agreement. If you don't pay what you owe, the sub-tenant and landlord could sue you.
Part 2 of 2: Writing the Sublease Agreement
Step 1. State the names of the parties involved and the date of the conclusion of the contract
Identify the full names of each party and their role in the agreement. The person who originally leases the property is the Lessee, while the individual who sublets it is the Sublet.
Example: "This contract documents the sub-lease agreement between the Lessee, Gianna Bianchi, and the Sub-tenant, Roberto Verdi, entered into on February 1, 2011"
Step 2. Identify the property
Please provide the full address. Example: "The property is located in Via Rosa Raimondi Garibaldi 40, Rome 00118".
- If the sublease does not involve full use of the property, for example only the garage will be used, state this in the description.
- If the property is for residential purposes, such as a house or apartment, it states that the sublet property will be used solely for residential purposes. A commercial contract should indicate that the property will only be used for this purpose.
Step 3. Indicate the term of the sublease
State the start date of the agreement and the end date. Determine in advance when the sub-tenant will access it and when he will have to leave.
Example: "The Sub-tenant will take possession of the property on February 1, 2011 at 9:00 am and empty it on June 6, 2011, at 12:00"
Step 4. Enter the amount and due date of the rent payment
It states the pre-established sublease fee and the date on which it must be paid. When a property is sublet, the sublet usually pays monthly. Example: "The Sub-tenant will pay a monthly rent of 550 euros to the Lessor by the third day of the month".
- In this section, it also indicates any fines to be paid in case of non-punctual payment. Example: "If the sum of the rent is not received at the end of the third day of the month, a penalty of 50 euros will be charged for the delay, to be added to the total amount of the agreed rent".
- Include the name of the payment recipient. Also enter the address to which the sub-tenant will have to send the check or to which he will have to go to pay the rent.
- You should also make it clear what your own financial contributions will be. For example, if your rent is 1000 euros and the sub-tenant pays you 850 euros, you have to pay 150 euros per month. Alternatively, you can include a clause to specify that you have already paid your full fee (for example, € 900 for a six-month contract), while the sub-tenant is entitled to the remainder.
Step 5. Include a section on security deposit
If the sub-tenant has to pay a deposit, indicate the amount and information regarding the return of the deposit when the contract expires. Example: "The Sub-tenant will pay a deposit of 1000 euros to the Lessor. Upon expiry of this contract, the Lessor will examine the conditions of the property. Any damage caused to it (beyond normal wear and tear) by the Sub-tenant will be deducted from the total of the deposit, which will be returned to the Sub-tenant upon the expiration of this agreement. Deductions from the deposit will also be implemented in the event of non-payment of the rent or high penalties due to late payment ".
- The contract should indicate that if the lessor retains the deposit or part of it, he will provide the sub-tenant with a written document to certify the reason. The landlord should hand over this document and the deposit, or the remainder, following the emptying of the property.
- In the contract, describe the possible reasons why the deposit will be withheld. Here are some typical ones: non-payment of the rent, significant penalties due to late payments and damage caused to the property (in addition to the classic ones from usury).
- Review the space leased with the sub-tenant and make a checklist both when the contract begins and at the end. Document the condition of the property both when he moves in and when he leaves. This helps determine any damage caused by the sub-tenant during the sublease period.
Step 6. Sign the contract and write the date
Both the lessee and the sub-lessee should sign the document using their full legal names. Each party should keep a copy.
Step 7. Give the contract to the owner
Make several copies of the signed sublet agreement: one for you, one for the sublet, and one for the landlord. It is strongly recommended that you send the sublease agreement and a letter containing your contact details by certified mail with acknowledgment of receipt. It will be a proof of receipt of the document by the owner.
Advice
- Before using a contract template, always review it to make sure it fits your needs. Use it as a basis for creating your document.
- Try to get the landlord and potential sub-tenant to sign an agreement between them. This displaces the need to draft a sublease agreement, freeing you from this responsibility.
Warnings
- This article refers to some legal information, but you should always seek professional advice to find out more about your specific case.
- If the contract does not mention subletting, ask the landlord for permission in advance. Otherwise, an illegal sublease can put you in danger of eviction.
- Choose carefully the person to whom you will sublet this space. In most cases, the responsibility lies with you. This means that if the sub-tenant stops paying the rent, you will have to pay the rent in full and try to recover the money they owe you.
- If you need further advice, get in touch with a legal professional or organization in your city that protects the rights of tenants. Do an internet search to find any useful resources.
- If in doubt, have a lawyer read the agreement. The revision of the document is unlikely to be free. However, it will cost you less than having to have a lawyer draft the agreement in the first place.
