Subletting a Rental: How to Sublet a Rental Property

Subletting is a process that allows renters to rent out their home, either partially or completely, to another party, known as a subtenant or subletter. The subtenant occupies the residence under the terms of a sublease, becoming the sublessee to the original renter, or sublessor. The original renter becomes the de-facto landlord for their subtenant(s).

Sublets can be short or long term. If the original tenant plans to leave the residence for a short period of time, a short-term lease is the most suitable option. Long-term leases are ideal for when the original tenant plans to leave permanently and intends for the subletter to take over the residence for the remainder of the lease term.

Subletting tends to take one of two forms: legally transferring your lease to a third party or renting a room to another party. In the first form, a tenant vacates the residence and enters into a sublease agreement with a new renter. Under the terms of the sublease agreement, the subletter makes monthly rent payments to the sublessor, who pays rent to the landlord according to their original lease.

In the second, one renter of a multi-occupancy home signs a lease and takes responsibility for the monthly rent while re-renting each room to subletters. In these cases, the sublessees are the sublessor’s roommates.

It’s important to be thorough in every step of the subletting process to protect yourself legally. Here’s a breakdown of the process:

1. 1. Research local laws. Even in areas where subletting is legal, it’s a good idea to research regulations and complications to ensure they’re a good fit for your situation.
2. 2. Talk to your landlord. Some lease agreements may allow sublets on a case-by-case basis, but others prohibit the practice, so it’s important to check your lease before moving forward. Still, it’s worth talking to your landlord to renegotiate your lease agreement to include sublets or potentially get their permission. Be sure to ask your landlord about the subletting process: Will they require potential subletters to fill out forms and pay fees? How long will it take for them to approve your subletter?
3. 3. Search for a subletter. Ask friends and family if they know of anyone looking to sublease. (A direct referral will be easier to vet down the line.) Otherwise, try posting to social media and apartment listing sites, or look for services specifically designated for prospective sublessors. Keep some flattering photos of the residence on hand and compose a description of the home that remains honest while showing off its assets.
4. 4. Give tours to interested parties. More often than not, interested parties will want to see the residence before they ask about a sublease agreement. Tidy up your space beforehand, so people leave with a positive impression. If in-person tours are not possible, use video-conferencing software.
5. 5. Vet applicants appropriately. To ensure you’re subleasing to the right person, ensure that they fit your criteria in terms of income and temperament. In some cases, your landlord may want to be involved in this part of the process. Ask for proof of income and credit score and request references from employers, former landlords, or roommates. Depending on your budget, consider retaining the services of a background check agency. Finally, interview prospective subletters to see if they plan to use the space in a way that aligns with your preferences and comfort level. If you have roommates, loop them into the process, so they feel comfortable.
6. 6. Draw up a sublease agreement. Once you find a suitable potential subletter, write up the terms of your tenancy agreement or modify an online template to suit your situation. (Your landlord may also provide this agreement.) This agreement should include a move-in and move-out date, detail the rent and which utilities the subletter will be responsible for, and stipulate what furniture or belongings (if any) will remain in the apartment. Consider collecting a security deposit in case the subletter damages the apartment or your belongings.
7. 7. Sign the sublease agreement. You and your subletter should both sign the sublease agreement. If you are transferring the lease and vacating the property, take pictures to document the state of everything so that you have proof in case of damage claims.
8. 8. Keep in touch with the new tenant. You may want to do periodic check-ins, both with your landlord and your subletter, to get ahead of any possible issues.

If it’s available to you, subletting can offer flexibility within your rental agreement.

1. 1. Move out early: If you want to move, subletting allows you to change location without incurring the fines and penalties that often accompany breaking a lease. If you get a new job or find a new apartment that better suits your needs, subletting allows you to leave without worrying about covering the rent on two apartments. Talk to your sublessee and landlord to see if the subletter can take over the unit permanently when your lease expires.
2. 2. Travel: If you want to travel for an extended period but don’t want to give up your rental or furniture, a sublet can allow you to keep your lease while traveling.
3. 3. Living with roommates: If you share your home with roommates, family members, or partners, it may make more sense to sublet a portion of the rent instead of adding them to the lease.

Depending on your situation, subletting may not be the best option.

1. 1. Financial risk: The original tenant is ultimately still responsible for the rental property since sublease agreements are subordinate to the original rental agreement between the renter and landlord. For example, if your subletter is late on rent, you will be responsible for paying the full rent to your landlord on time. Additionally, if your subletter damages the property, the landlord may hold you responsible.
2. 2. Time commitment: Subletting turns you from a renter into a landlord, meaning you have to be responsive to your subletter’s issues, questions, and complaints. Decide whether you have the time or interest to take on that work.
3. 3. Landlord issues: Subletting may seem like a great option for you, but if it’s against the terms of your lease, it’s a no-go. Illegally subletting your home can cause major issues with your landlord and carry legal ramifications.

When you sublet, you take on a lot of additional responsibilities that may not have been relevant under your original rental agreement. For example, your renter’s insurance may not cover damage that a subtenant incurs. In addition, you bear a social responsibility to your roommates and neighbors if your subletter is disruptive.

Research local and state laws to determine the best framework for your sublet. It may be more convenient for you to pursue other options, like negotiating a lease takeover with your landlord.

All investments, including real estate investments, come with inherent risks which may involve the depreciation of assets, financial losses, or legal ramifications. The information presented in this article is for educational, informational, and referential purposes only. Consult a licensed real estate or financial professional before making any legal or financial commitments.

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