Subleasing offers a flexible solution for temporary housing arrangements, allowing you to rent out all or a part of the property to another occupant, known as a subletter or subtenant.
If you’re a current tenant looking to sublease, this comprehensive guide will walk you through the process of how to sublease an apartment in four easy steps.
Subleasing Guide
We recommend you read our subleasing guide to learn more about subleasing before proceeding to the actual steps.
What Is Subleasing?
Subleasing is a temporary housing arrangement that allows a tenant to rent out either a part of or the entire leased property to another individual, known as the subtenant.
In this arrangement, the tenant remains bound by the terms of the original lease or rental agreement with the landlord (typically including rent payments). Unless otherwise stated in the sublease agreement or the original lease, the tenant typically takes on the role similar to a landlord with the subtenant, establishing a legally binding contractual relationship.
Subleasing is popular among students, young professionals, and individuals who frequently travel for work or are out of town for periods of time. It offers a cost-effective solution for covering rent costs while the original tenant is away or for finding short-term housing.
How to Sublease an Apartment in 4 Steps
This four-step guide will help you sublease safely and legally.
Step 1: Understand Your Responsibilities
When you decide to sublease your apartment, it’s crucial to understand the dual role you’ll play: adhering to your original lease terms and acting as a landlord to your subtenant. Here are the key responsibilities:
- Obligations from the original lease. This includes paying rent on time, handling utilities, and maintaining the property.
- Landlord responsibilities to the subtenant. Make sure that you are comfortable addressing any potential problems that may arise with your subtenant. This can include removing the subtenant for nonpayment of rent or inappropriate behavior.
- Financial backup for the subtenant. Be prepared to cover the rent if your subtenant defaults, as this could affect your lease. You can still pursue the subtenant for unpaid rent, as they’re legally bound by the sublease agreement.
- Legal compliance. Familiarize yourself with local subleasing laws and regulations, which can vary and add complexity to your role. If your state does not have specific laws regarding subleases, landlord-tenant laws typically apply to tenant-subtenant relationships. For the states that do address sublease laws, it’s usually sublease laws in addition to landlord-tenant laws, which adds an extra layer of complexity.
Step 2: Obtain Consent From Your Landlord
Review your original lease to understand its stance on subleasing, which typically falls into one of three scenarios:
- If subleasing is explicitly prohibited, discuss with your landlord the possibility of amending the lease. If they decline, you must respect the lease terms, as subleasing without permission could breach the lease and violate landlord-tenant laws in some states.
- If subleasing is allowed with conditions, ensure you meet these requirements. Even if not mandated, inform your landlord about your decision to maintain good relations.
- If the lease doesn’t mention subleasing, refer to state laws for guidance. For instance, Michigan law allows subleasing by default if the lease is silent on the matter.
Regardless of the situation, it’s wise to get written consent from your landlord before you sublease the property. Verbal agreements usually do not hold up in case of disputes or issues in the future.
Remember, in some states, landlords can’t unreasonably refuse a sublease. In other words, they cannot deny your request to sublease just because they “don’t feel like it.” The landlord must have valid reasons for denial, such as the prospective subtenant’s poor credit, an indicator of inability to pay rent.
Sublease Fee
Sometimes, landlords charge an additional sublease fee when a tenant opts to sublease their apartment. This fee is legal in many jurisdictions and compensates the landlord for the extra administrative work and potential risks involved in subleasing. The amount varies, typically ranging from a flat fee to a percentage of the monthly rent. Check your lease agreement and local laws to understand the specific terms and legality in your area.
Step 3: Find a Suitable Subtenant
Your ultimate goal is to find a trustworthy, reliable new subtenant for your sublease. Begin by:
- Create an advertisement for your home that describes its features;
- List the dates that the apartment will be available;
- Provide your contact information;
- Post your advertisement on social media, rental or advertising websites (e.g., Craigslist), and other community sites; and
- Reach out to friends and colleagues, and ask them to spread the word.
Once you have found a few people interested in subleasing the property, screen them properly by verifying their:
- Employment;
- Income;
- References; and
- Any criminal history;
In addition to a background check, consider your specific situation and preferences. If you’re sharing space with the subtenant, think about:
- Their work schedule. If one of you works the night shift but the other is a nine-to-fiver, there’s a high chance you may disturb each other’s rest hours.
- Their lifestyle and habits. For example, if you have high standards on cleanliness, a prospective subtenant who only does the dishes once a week might not be the best choice for you.
- Their personality. If the prospective subtenant enjoys socializing but you enjoy alone time, you might want to consider someone else.
Choosing a responsible subtenant is key to a successful subleasing experience. They are typically expected to follow the rules of your original lease agreement. If your subtenant fails to follow the terms of your lease, the consequences fall back on you.
In some states, landlords have the right to screen potential subtenants. Make sure to adhere to any screening requirements set by your landlord to ensure a smooth subleasing process.
Renters' Insurance in Subleasing
If you’re subleasing long-term, it’s wise to update your renters’ insurance policy to reflect your new living arrangement. Additionally, it’s a smart move to require your subtenant to have their own renters’ insurance. This provides an extra layer of protection for their possessions and any potential liabilities.
Step 4: Sign a Sublease Agreement
Once you’ve found a suitable subtenant, it’s essential to draft and sign a sublease agreement.
You and your subletter must agree on the following important information:
-
Amount of security deposit.
Generally, you as the tenant can collect a security deposit from the subtenant as security to cover unforeseen damages. You will be subject to the standard laws and regulations regarding security deposits, including the maximum security deposit limit.
- Total rent due each month. You are responsible for collecting rent from the subtenant, and the amount you set is subject to local laws such as rent control.
- Forms of payment accepted;
- Whether or not parking, storage, and furniture are included;
- Length of the sublease term;
- Late fees;
- Utility payments. Typically, the tenant pays all utilities in subleases and applies those costs to the rent. If you wish, however, you can specify which utilities (electricity, gas, etc.) are to be paid by the subtenant.
- Other important lease provisions, including pet restrictions and smoking rules.
Including all relevant information in your sublease agreement protects your rights and clearly outlines the expectations for both you and your subletter should a future dispute arise.
After Move-In
As the current tenant, you remain responsible for overseeing the maintenance and any potential damages to the property. Communicate with the subtenant regarding maintenance requests and address any issues promptly.
In the event of non-payment of rent or breaches of the sublease agreement, you may need to take appropriate action, including removal of the tenant. Familiarize yourself with the laws and procedures regarding removal in your state to handle such situations legally and efficiently.
Additionally, establish a process for handling disputes that may arise between you and the subtenant. Open and clear communication is key to resolving conflicts amicably.