What Is a Sublease?
When a tenant leases a property from a landlord, he is obligated to continue making rent payments for the duration of the lease. If the tenant has to move out of the property, he can find someone to take over the property and the rent payments for him. This is known as a sublease, and it is commonly used to help avoid breaking a lease.
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How It Works
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In a sublease agreement, three separate parties are involved. This agreement has a landlord, a tenant and another renter who takes over the lease for the first tenant. With this type of agreement, the primary renter moves out of the property and then assigns the property to the second renter. This second renter makes the monthly rent payment to the first renter, who then sends the money to the landlord of the property.
Liability
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In a sublease situation, the primary renter is still liable for the lease contract. This means that if the property is damaged or if the rent goes unpaid, the primary renter is the one who will be held responsible for these costs. When the property is damaged, the landlord will contact the primary tenant to collect money to repair it. The primary tenant is the one who technically has the agreement with the landlord and because of this, he remains fully liable.
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Choosing a Tenant
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When you are thinking about subletting a property to someone else, you have to make sure that you choose the proper tenant. This needs to be someone that you trust completely, because you are essentially putting yourself in a position of risk. You need to find out as much information as possible about the new tenant to ensure that you choose a quality applicant. You may also want to charge a security deposit to the second renter to ensure that any damages are paid for.
Sublease Agreement
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When you choose a new tenant to sublease the property from you, you need to come up with a sublease agreement. Before you let someone into your property, you need to have a legally binding agreement that helps protect you in case you run into issues. This contract specifies how much the new renter will have to pay in rent. It also helps convey the rules of the property to the new tenant so he can avoid problems with the landlord.
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