What Is Subletting: 10 Sublet Tips for 2023
You may have heard of subleasing before, but you're not sure what it is, or whether it's a good option for you. If you need to move out early, replace a roommate, or add someone new to your lease, then read on to explore the ins and outs of subletting.
A Guide to Subletting
What Is Subletting?
Subletting, or a sublease agreement, occurs when a tenant leases out all or part of their rented property to another tenant. Subletting is often used when you need to move and don't want to pay the penalty of breaking your lease. Many renters also use subleases when a roommate moves out, or when they want to add someone new to a lease.
Subletting can be a great option when you need to make changes to your tenancy, but it's essential to do it correctly, or you could be in violation of your lease terms and face financial consequences. So before you decide to sublease, here is an overview along with some subletting tips on how to proceed.
What are the Rules of Subletting?
The rules for subletting depend on your lease agreement as well as state and local law. When you sign a sublease, your subtenant agrees to pay a certain amount toward your rent and to keep the property in good condition. However, a sublease does not relieve you of your responsibility to a lease.
If your sublet does not pay rent, you will still be responsible for it. The sublease agreement, however, allows you to seek compensation for breaking the terms of the contract if you sublet does not meet their obligations.
10 Tips for Subletting Successfully
Don't just offer up a lease to an acquaintance and get ready to move out. Instead, sublet an apartment legally and with your landlord's approval with a few simple steps.
1. Make Sure You Are Allowed to Sublet
Check your lease and look for any sections referencing subletting. It may be forbidden altogether or allowed with pre-approval under certain circumstances. If your lease doesn't contain any information about subletting, reach out to your landlord for clarification. It's always a good idea to keep your landlord in the loop about your subleasing plans. They may even be able to help you find someone.
In some cases, including military and active duty requirements, you may be entitled to break your lease without penalty and skip subleasing altogether.
2. Check-In With Your Renter’s Insurance Company
Your renter's insurance may stipulate whether you are covered for damage caused by a sublet. If you're not, you can request the sublet to carry their own insurance. Otherwise, you could be liable for any damage caused during your sublease agreement.
3. Research Local Rental Laws
Some local laws require you to obtain a landlord's consent before subletting or bringing in a new roommate. There are also restrictions around how much you can charge for a sublease, especially in rent-controlled markets.
4. Create a Sublease Agreement
Don't agree to a sublet renting on a handshake, or you could leave yourself open to paying for the damage and taking over unpaid rent. Instead, draft a sublease agreement, which is a legal document allowing a tenant to transfer lease ownership to a third party.
5. Post Your Sublet and Market It
Subletting apartments in competitive markets, like New York or San Francisco, aren't hard to find. Start by asking your personal network if they know if someone is looking to take over a lease. Otherwise, post your sublet and market it through apartment rental sites, social media, or even college student newspapers.
6. Determine if You Need a Security Deposit
If your landlord permits you to sublet your apartment, they will probably require a security deposit directly from the new subtenant. But if you're handling the sublet yourself, you still need a deposit to cover any potential damage or non-payment of rent.
7. Consider Your Current Roommates
Keep your current roommates in the loop about your short-term sublet plans, as they may want someone they know to take over the lease or be part of the search for a new renter. Otherwise, they could resent your decision and create tension in the apartment.
8. Plan for Utility Bills
Settle on a plan for who takes over utility bills. The new subletter may need to open utility accounts and take over everything to assume financial responsibility. But if you're moving back in after a few months, it may be easier to plan and ask your sublet to pay the bills on your behalf.
9. Screen Potential Subtenants
Potential sublets are often required to go through a screening process, though your landlord may take care of the process themselves. Otherwise, interview the subtenant yourself, hire a third party to run a credit check, ask for references, and confirm their employment.
10. Interview Potential Subtenants
Interviewing potential subtenants is an essential part of the process. You'll get an idea of their reliability, if they'll get along with your roommates, and set expectations. For example, if they love the nightlife, you should consider whether or not your neighbors and roommates are sensitive to noise.
Questions to Ask Subtenants
If you're not sure how to conduct an interview for subleases, here are some questions to consider:
- When can you move in?
- Do you have any pets?
- Why are you moving?
- Why do you need short-term housing?
- Do you plan to host guests or throw parties?
- Do you smoke?
- Where do you work, and what is your income?
- What is your communication style to resolve conflicts?
Ask relevant questions regarding the lease but avoid overly personal questions that could make a subletter uncomfortable.
How Do You Ask Permission for a Sublet?
If your lease and local laws permit subletting, you still want to seek permission from your landlord. Here are some tips for doing so successfully:
- Know the terms of your lease for subletting, and ask if you're unclear.
- If you have roommates, inform them of your plans.
- Post your sublet online or in the local paper.
- Screen applicants.
- Draft a sublease agreement.
- Notify your landlord in writing of your intention to sublet.
- Wait for a response from your landlord, then sign the sublease agreement.
What are the Benefits of Subletting?
There are many upsides to subletting that give you more flexibility and control over your situation.
- You can potentially end your lease without paying a penalty.
- You enjoy more flexibility to temporarily move out for a long trip or work before returning.
- Someone else pays your rent while you're away.
- Depending on your agreement, your subletter can water your plants, feed your fish, and take care of details around your apartment.
Make a list of subleasing pros to help make your decision.
What are the Risks of Subletting?
There are also downsides to subletting that could change your mind about how to proceed:
- Potential lease violations
- Property damage
- Could create conflict with your roommates
- You're compromising your reputation if your subletter proves unreliable
- The subletter could flake, even after they sign a lease
- It's not always easy to find the right short-term tenant who's on the same page you are
Depending on your situation, you may not mind the downsides to subletting. However, make sure you understand each scenario and can deal with the consequences. For example, have an idea of a backup plan if your subletter suddenly stops paying rent.
Alternatives to Subletting
If you're unsure if subletting is right for you, there are other options to consider. For example, a short-term lease or month-to-month option provides more flexibility but may come at a higher price than your usual rent.
It's sometimes possible to skip subleasing altogether and break your lease without a penalty, but it could negatively impact your credit score or make renting in the future more difficult. Depending on your lease, an early termination fee may be small and worth the cost to avoid subleasing hassles.
Sublease Agreement Template
Your property manager should already have a sublease template that follows your local guidelines. If you need help creating a resource for yourself or just want to couple check everything, here's what to add to your sublease agreement:
- Names of the sublessor and subtenant
- Address of the subleased property
- Duration of the sublease agreement
- Rental amount, including due dates, late penalties, and who the tenant should pay it to
- Security deposit information
- Parking information
- Guest policies
- Noise policies
- Smoking and drinking policies
- Utility costs and payment information
- Details regarding their living space and whether or not they're sharing a bathroom, room, or common area
- A statement specifying that the rules of the master lease legally bind the subleaser
- A statement that the unit is in good condition and the subletter assumes any repairs or damages.
- Signatures of the parties involved
- The date the sublease was signed
If your landlord doesn’t have a standard sublease agreement template, it’s wise to ask a lawyer to review it before signing anything.
Find Your Next Apartment
Now that you know the answer to,"what is subletting," you can make an informed decision about whether or not it's the right choice for you. Subletting an apartment doesn't need to be difficult, but you do need to assess the pros and cons and make everything legal for a seamless experience.
Ready to start looking for a new place? Take our quiz to get matched with your dream apartment.
What is the Subletting Clause?
The subletting clause is a line in a lease agreement that outlines the rules for subleases. It may state that subleasing is only permitted with prior consent from the landlord, or it may prohibit subleasing altogether. The first step in your subleasing journey is to look for a subletting clause in your lease agreement.
How Do You Know if a Sublet is Legitimate?
Some signs of a subleasing scam include
- The price of rent sounds too good to be true
- The listing is vague or contains a lot of errors
- You can't find the rental address online
- The person who made the listing asks you for money up front or before you sign the lease
- They won't allow you to tour the property
How Do I Write a Sublet Letter Request?
To request permission from your landlord for a sublet send them an email or certified mail, and include the following:
- Your contact information
- The address of the property
- A statement of your intention to sublet
- The length of the sublease
- The name and contact information of the subtenant
- A mail forwarding address for when you move out