What is a Sublease Agreement?
A sublease agreement is where the tenant enters into a formal agreement with a third party to rent part of the premises (eg. the garage or granny flat) or the whole premises to them. They are effectively taking on the role of landlord for the sub–tenant.
However, they still remain the tenant of the landlord and continue to be responsible for paying the whole of the rent.
There is no contractual arrangement between the landlord and the sub–tenant. But the original tenant is responsible for the actions of the sub-tenant. If for example the sub–tenant caused damage to the property, the tenant would need to fix it or pay for the cost of the repairs. They may be able to recover the cost by taking action against the sub–tenant.
Do you intend to create a sublease over your property?
Protect your interests and your property by ensuring the Agreement is official.
Download our Sublease Agreement Template now.