MAKE YOUR FREE Sublease Agreement
What we'll cover
What is a Sublease Agreement?
Residential Sublease Agreements are used to sublet residential property to a new tenant (ie a ‘subtenant’). Subletting is creating a new tenancy within (or ‘under’) an existing tenancy. A Sublease Agreement sets out the terms of the subtenant’s rental of the property from the original tenant (ie the ‘sublandlord’).
For use in England only.
When should I use a Sublease Agreement?
Use this Sublease Agreement:
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to create a new subtenancy that is an assured shorthold tenancy (AST), which will last for a fixed term
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when the property is already let to a private residential tenant (ie the sublandlord) under an AST
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when the property will be the subtenant's main home
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when the subtenant is a private individual or multiple private individuals (ie not a commercial tenant)
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to sublet a whole property (ie the entirety of the house, flat, or room that the sublandlord rented from their landlord (ie the ‘head landlord’), rather than only part of the property)
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when neither the head landlord nor the sublandlord will be living at the property
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for properties located in England only
Sample Sublease Agreement
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ASSURED SHORTHOLD TENANCY AGREEMENT (ENGLAND) (SUBLEASE)
This Assured Shorthold Tenancy Agreement is made on the last date of signature, between:
- of , , (the Sublandlord); and
- of , , (the Subtenant).
Definitions and Interpretation
- In this Agreement, the following definitions are used:
Agreement | This Assured Shorthold Tenancy agreement and any amendments from time to time; |
Deposit | £; |
Insured Risks | Means fire; explosion; lightning; earthquake; storm; flood; bursting and overflowing of water tanks, apparatus, or pipes; impact by aircraft and articles dropped from them; impact by vehicles; riot; civil commotion; and any other risks against which the Landlord or Sublandlord (as appropriate) decides to insure against from time to time, and Insured Risk means any one of the Insured Risks; |
Landlord | The landlord under the Master Tenancy Agreement, i.e. ; |
Master Tenancy Agreement | The tenancy agreement made between the Sublandlord (i.e. the tenant of the Master Tenancy Agreement) and the Landlord (i.e. the landlord of the Master Tenancy Agreement) on ; |
Property | , , England, together with any fixtures and fittings provided within the premises by the Landlord or the Sublandlord; |
| Rent | The sum of £ payable in advance in respect of each rental period, which is each period of from onwards; |
| Term | starting on ; |
Working Days | Any day other than a Saturday, Sunday, or public holiday in England. |
- In this Agreement, unless the context requires a different interpretation:
- The singular includes the plural and vice versa;
- Words importing one gender include all other genders;
- References to sub-clauses, clauses, schedules, or appendices are to sub-clauses, clauses, schedules, or appendices of this Agreement;
- A reference to a person includes firms, companies, government entities, trusts, and partnerships;
- “Including” is understood to mean “including without limitation”;
- Reference to any statutory provision includes any modification or amendment of it;
- The headings and sub-headings do not form part of this Agreement; and
- "Writing" or "written" will include fax and e-mail unless otherwise stated.
- If two or more persons are together the Subtenant or Subtenant Guarantor, their obligations to the Sublandlord shall be joint and several.
- This Agreement is for private residential accommodation.
- Any obligation on the Subtenant to do or not to do something includes an obligation on the Subtenant to use their reasonable endeavours to ensure that no other person does or fails to do that same thing.
Grant of Subtenancy
- The Sublandlord grants and the Subtenant accepts a tenancy of the Property for the Term at the Rent on the terms contained in the Agreement (the Subtenancy).
- This Agreement is intended to be an assured shorthold tenancy (AST) under the Housing Act 1988 (as amended by the Housing Act 1996). When the Term expires, the Sublandlord can recover possession of the Property unless the Sublandlord issues a notice stating that the tenancy is no longer an AST.
- This Agreement is made as a subtenancy of the existing AST between the Sublandlord and the Landlord under the Master Tenancy Agreement, a copy of which is.
- The Subtenant accepts that:
The Sublandlord will be entitled to recover possession of the Property at the end of the Term; and
The Subtenant is not entitled to end this Agreement before the end of the Term (unless stated otherwise in the section headed "General").
The Landlord and the Master Tenancy Agreement
- The Sublandlord warrants that they have the prior explicit written consent of the Landlord to sublet the Property to the Subtenant, by creating a subtenancy of the Sublandlord’s own tenancy under the Master Tenancy Agreement.
- This Agreement is subject to all rights, restrictions, and obligations imposed by the Master Tenancy Agreement.
- Any consent regarding the Subtenancy that the Subtenant obtains from the Sublandlord is contingent on the Landlord also providing prior explicit written consent to that request, whether within the Master Tenancy Agreement or otherwise. This requirement applies to consents including but not limited to consents to:
- Sublet, assign, charge, part from, or share occupation of the Property;
- Make alterations to the Property; or
- Keep a pet at the Property.
- The Sublandlord will inform the Landlord in a timely manner (for the avoidance of doubt, within 5 Working Days, where reasonable) of any issues regarding the Property or of any significant communications between the Sublandlord and Subtenant regarding the Subtenancy. This includes but is not limited to communications and issues regarding:
- Repairs and maintenance;
- Disputes with neighbours or other third parties;
- Planning, licensing, or other types of regulatory, governmental, or local authority notices delivered to the property; or
- Ending, altering, or dealing with the Subtenancy.
Use of Property
- The Subtenant shall:
- Use the Property as a single private home and not carry on any trade, profession, or business on or from the Property;
- Immediately notify the Sublandlord if the immigration status of the Subtenant changes;
- Not permit anyone to occupy the Property without the prior written consent of the Sublandlord (such consent not to be unreasonably withheld); and
- Send the Sublandlord a copy of any notice or other communication affecting the Property within 5 Working Days of receipt (where reasonable) and not take any action regarding such notices or communications without the prior consent of the Sublandlord.
- The Subtenant shall not:
- Leave the Property unattended for a period of more than 21 consecutive days or change the locks on any door or window without the prior written consent of the Sublandlord; or
- Park a caravan, boat, or trailer at the Property without prior written consent.
- The Subtenant shall not do anything to or on the Property that:
- Causes a nuisance, annoyance, or damage to occupiers of a neighbouring, adjoining, or adjacent property, or the owners or the occupiers of them;
- Involves using the Property for immoral or illegal purposes; or
- Has the effect of invalidating any insurance that the Landlord or Sublandlord has taken out in accordance with this Agreement or with the Master Tenancy Agreement.
- If the Subtenant has the use of the Landlord’s and/or the Sublandlord’s furniture, the Subtenant will:
- Not damage or remove any of the items;
- Keep the items clean and in a good condition; and
- Make good any damages or breakages of items that occur during the Term.
Pets
The Subtenant is a responsible pet owner.
The relevant pets are of a kind that is suitable to be kept in the Property, and
The relevant pets are not likely to:
Cause damage to the Property or its contents,
Pose a risk to anybody’s health and safety, or
Cause a nuisance to neighbours.
Keys
- The Sublandlord shall provide the Subtenant with at least one set of keys and any security device (e.g. a key fob) that the Subtenant will require in order to obtain access to the Property (the Access Devices). The Subtenant is responsible for looking after and keeping safe the Access Devices for the duration of the Subtenancy. If the Subtenant loses an Access Device, the Subtenant shall pay the actual cost of replacing any lost Access Devices and other expenses reasonably incurred by the Sublandlord as a result of loss of the Access Device (e.g. replacing the Property's locks).
Rent
- The Subtenant shall pay the Rent and all other sums due under the Agreement (whether formally demanded or not) clear of all deductions at the agreed times.
- The Subtenant shall be in breach of this Agreement if the Subtenant fails to pay the Rent in accordance with this clause and the Sublandlord shall be entitled to use the statutory provisions contained in the Housing Act 1988 or any other statutory remedies available to recover possession of the Property.
- If the Property is damaged or destroyed by an Insured Risk so as to be unfit for occupation and use then, unless the damage or destruction was caused by the wilful actions, negligence, or default of the Subtenant, payment of the Rent shall be suspended until the Property is fit for occupation and use.
Utilities and Outgoings
- The Subtenant shall comply with all laws and recommendations of the relevant suppliers relating to the use of those services and utilities.
Repairs and Alterations
- The Subtenant shall keep the Property clean and in a good condition and make good any damages or breakages to the Property (excepting fair wear and tear), provided that this clause shall not impose any obligation on the Subtenant that is the obligation of the Landlord or Sublandlord under section 11 of the Landlord and Tenant Act 1985.
- The Subtenant shall keep the inside of the Property (including glass in the windows) in a good state of repair and condition.
- The Subtenant shall not cause any blockage to the drains, gutters, or pipes of the Property. This obligation does not require the Subtenant to carry out any works or repairs for which the Landlord or Sublandlord is liable.
- The Subtenant shall keep any communal halls, lifts, passageways, driveways, and other common areas clean and fit for use.
- The Subtenant shall not make any alterations or additions to the Property, or redecorate the Property, without the prior written consent of the Sublandlord (such consent not to be unreasonably withheld).
- The Subtenant shall notify the Sublandlord of any disrepair or defect to or act of vandalism carried out to the Property, its common areas, or the fixtures and fittings included with it.
The Subtenant shall immediately comply with any notice given by the Sublandlord in response to such a notification, if that notice lawfully requires any damage to the Property, common areas, or fixtures or fittings to be made good.
- The Sublandlord reserves the right for the Sublandlord (and all those authorised by the Sublandlord including, where appropriate, the Landlord) at reasonable times to enter the Property on giving the Subtenant at least 24 hours’ prior notice in writing, to:
- Check the state of repair, decoration, and condition of the Property;
- Carry out repairs, decoration, or alterations to the Property or adjoining property; and
- Clean or renew any pipes, sewers, drains, or gutters at the Property.
Assignment and Subletting
- The Subtenant shall not take in any lodgers at; assign, charge, part with, or share occupation of; or further sublet the Property or any part of it without the prior written consent of the Sublandlord and the Landlord.
Expiry of the Subtenancy
- At the end of this Subtenancy (howsoever determined), the Subtenant shall:
Yield up the Property with full vacant possession;
Return all of the fixtures and fittings contained in the Property to the Sublandlord in the same state (excepting fair wear and tear) as at the start of the Subtenancy;
Give the Sublandlord a forwarding address;
Remove all rubbish and personal items (including the Subtenant's own furniture and equipment) from the Property;
Ensure that the Property is in an equivalent state of cleanliness to that in which it was when the Subtenant began occupying the Property; and
Return all Access Devices to the Sublandlord.
- If any of the Subtenant's personal items have not been removed from the Property when the Subtenancy ends
- The Sublandlord shall be entitled to remove such personal items from the Property in order to store them elsewhere;
- Upon removal of the Subtenant's personal items, the Sublandlord shall use their reasonable efforts to notify the Subtenant of where the personal items are being held, the date of any proposed sale or disposal, and the Sublandlord's contact details, in case the Subtenant wishes to take back their personal items;
- The Sublandlord shall be entitled to sell, dispose of, or otherwise deal with any personal items 21 days after the Sublandlord uses their reasonable efforts to notify the Subtenant in accordance with the clause above.
Sublandlord's Obligations
- Subject to the Subtenant paying the Rent and carrying out their obligations under this Agreement, the Sublandlord agrees that the Subtenant may quietly possess and enjoy the Property.
- The Sublandlord shall maintain and keep in good repair the exterior of the Property and keep all installations for the supply of water, sanitation, and heating at the Property in working condition.
- The Sublandlord shall keep in good repair and proper working order the installations in the Property for space heating and heating water.
- The Deposit must be held in one of the Government tenancy deposit protection schemes (i.e. a Deposit Scheme).
- Within 30 days of receiving the Deposit, the Sublandlord must give the Subtenant the necessary prescribed information about the Deposit Scheme.
- Subject to any rules or provisions of the Deposit Scheme, the Sublandlord or their agent will be entitled to claim from the Deposit:
Any Rent or other sums payable by the Subtenant under this Agreement which are in arrears;
Any reasonable sum the Sublandlord incurs in remedying any failure by the Subtenant to comply with any of the terms of this Agreement, including those relating to the cleanliness, state, and condition of the Property (provided always that the sum claimed by the Sublandlord is reasonably incurred and reasonable in amount);
Any unpaid account for services or council tax incurred at the Property; and
Any reasonable costs incurred in respect of any repair or damage to the Property (excepting fair wear and tear and repair that is the responsibility of the Sublandlord).
- Unless required under the Deposit Scheme, no interest will be paid to the Subtenant by the Sublandlord in respect of the Deposit.
- Whether insurance is held by the Landlord or the Sublandlord, the Sublandlord must ensure that the Property and any of its contents that belong to the Landlord or Sublandlord are insured with an insurance company of repute against any of the Insured Risks that the Landlord or the Sublandlord (as appropriate) from time to time in their absolute discretion decides to insure against. The Sublandlord shall be under no obligation to insure the Subtenant's personal items at the Property.
- The Sublandlord will ensure that all furnishings at the Property meet with legal regulations on safety and that all appliances are maintained and the appropriate safety checks carried out.
Default by the Subtenant
- The Sublandlord may recover possession of the Property (subject to any statutory provisions) and the Subtenancy will come to an end (subject to any other rights or remedies the Sublandlord may have) if at any time:
Any Rent or any part of the Rent payable under this Agreement is outstanding for 14 days after becoming due (whether formally demanded or not);
There is a breach by the Subtenant of any obligation or other provision of this Agreement; or
Any of the following grounds for possession contained in Schedule 2 of the Housing Act 1988 apply:
Part I of Schedule 2, Grounds 2 or 8; or
Part II of Schedule 2, all Grounds with the exception of Grounds 9 and 16.
- If any Rent or other sums due are not paid 14 days after becoming payable (whether formally demanded or not), the Subtenant will pay interest on any sums due at the rate of 3% per annum above the Bank of England's base rate, calculated from the date payment is due up to the date payment is received by the Sublandlord and such sums will be recoverable as rent in arrears.
- If the Property is damaged to such an extent that the Subtenant cannot live in it, the Rent does not need to be paid until the Property is rebuilt or repaired so that the Subtenant can live in it again, unless:
The cause of the damage is something which the Subtenant did or failed to do as a result of which the Landlord's and/or Sublandlord’s insurance policy has become void; and
The Sublandlord had given the Subtenant notice of what the policy or policies required.
- If the Subtenant breaches this Agreement or fails to fulfil any of its obligations under this Agreement, the Subtenant shall pay any reasonable costs properly incurred by the Sublandlord in remedying such breaches or in connection with the enforcement of those obligations.
General
- Any notice or other document relevant to the Subtenancy shall be served on the Subtenant during the Subtenancy by either being left at the Property or by being sent to the Subtenant at the Property by first class post. Notices shall be deemed served the day after being left at the Property or the day after posting.
- The Sublandlord's address for service is .
- For the purpose of section 48 of the Landlord and Tenant Act 1987, any notices, including notices in proceedings, must be served on the Sublandlord at the address stated in this Agreement.
- If there is a Subtenant Guarantor, they guarantee that the Subtenant will perform their obligations under this Agreement. The Subtenant Guarantor agrees to pay on demand to the Sublandlord any Rent and other sums due to the Sublandlord by the Subtenant under this Agreement that are unpaid by the Subtenant. The liability of the Subtenant Guarantor shall continue until the end of the Term.
- This Agreement will be governed by and interpreted according to the law of England. All disputes arising under the Agreement will be subject to the exclusive jurisdiction of the English courts.
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About Sublease Agreements
Learn about making your Sublease Agreement
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How to make a Sublease Agreement
Making your Sublease Agreement online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all the information about the subtenancy prepared in advance, creating your document is a quick and easy process.
You’ll need the following information:
The parties
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What are the sublandlord’s name and address?
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If there are multiple sublandlords, enter this information for each of them.
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If they have a separate correspondence address, what is it?
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What are the subtenant’s name and address?
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If there are multiple subtenants, enter this information for each of them.
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Is a guarantor required? If so, what is their name and address?
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If there are multiple guarantors, enter this information for each of them.
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The property
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What’s the address of the property being sublet?
The existing tenancy
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When was the master tenancy agreement made (ie the Tenancy agreement under which the sublandlord rented the property from the head landlord)?
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Will a copy of the text of the master tenancy agreement be attached to the Sublease Agreement or inserted into it?
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What are the name, address, and legal structure of the head landlord? If it’s a company, what is its company number?
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Will the head landlord’s consent to subletting be set out within the Sublease Agreement?
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If so, and the head landlord is a company, LLP, or partnership, who is the head landlord’s signatory (ie the person who will sign the Agreement on the company’s, LLP’s, or partnership’s behalf)?
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Terms of the subtenancy
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When will the subtenancy start?
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How long is the subtenancy for (ie how long is its fixed term)?
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Does the subtenant need case-by-case permission to keep pets in the property, or can they keep any pets?
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Does the subtenant have access to a parking space?
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Can the subtenant choose to end the subtenancy early? If so:
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Can the sublandlord also choose to end the subtenancy early?
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After which date can this be done?
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How much notice must be given to end the subtenancy?
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Rent and other payments
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How much rent will the subtenant pay?
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How frequently will the subtenant pay rent?
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Can the sublandlord increase the rent once per year? If so:
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Can they increase it in line with the Consumer Prices Index (CPI) or by a specific, fixed percentage?
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When can the sublandlord increase the rent each year?
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Who is responsible for paying charges for utilities and other services: the subtenant, the sublandlord, or a combination of both?
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If a combination of both, which charges is each party responsible for?
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Does the subtenant need to pay a tenancy deposit?
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If so, how much is the deposit?
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The Sublease Agreement
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Is there an Inventory?
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Is the sublandlord signing the Agreement themselves, or is an agent signing on their behalf?
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Common terms in a Sublease Agreement
Sublease Agreements create a subtenancy so that a tenant can rent out the property they’re living in without needing to end their own tenancy. To do this, this Sublease Agreement template includes the following terms and sections:
Parties
The Sublease Agreement starts by clearly identifying the parties to the Agreement, including the guarantor if there is one.
Definitions and interpretation
This table sets out the meanings of key terms used within the Agreement. When these terms are used capitalised throughout the Agreement, they carry the meaning they’re given in this table. For example, ‘landlord’, ‘property’, and ‘deposit’ are defined here.
Grant of subtenancy
The core of the Agreement starts by explicitly identifying that the Agreement is creating a subtenancy, specifically an assured shorthold tenancy (AST), under the sublandlord’s existing tenancy.
The landlord and the master tenancy agreement
This section sets out key details of the sublandlord’s original tenancy. For example, it identifies the head landlord and the master tenancy agreement and contains the sublandlord’s legal promise that they have the head landlord's consent to sublet the property via the Sublease Agreement.
Importantly, this section also requires that any consents that the sublandlord gives the subtenant (eg to keep pets, alter the property, or further sublet the property) are contingent on the head landlord also providing consent to the given request - the head landlord’s consent could be included within the master tenancy agreement or provided in another written document.
Use of property
Next, the Agreement sets out rules for how the subtenant may and may not use the property. For example, they can only use it as a private individual, and must not do certain damaging or disruptive things in relation to it.
Pets
This section sets out whether the subtenant needs case-by-case permission to keep pets or whether they have a general permission to do so. It sets out the subtenant’s responsibilities in relation to keeping pets.
Keys
Here, the Agreement sets out the subtenant’s responsibilities in relation to keys and other devices for accessing the property.
Rent
Details of the subtenant’s obligation to pay rent are set out here.
Rent review
If the sublandlord is allowed to raise the rent once per year, this ‘rent review clause’ will be included, setting out the conditions that they must follow to do so.
Utilities and outgoings
This section identified who is responsible for paying utility bills and other related charges for the property. If the sublandlord is responsible, they may, in turn, be relying on the head landlord’s commitment to covering some or all such charges.
Repairs and alterations
Next, the Agreement sets out both parties’ rights and obligations in relation to maintaining the property’s condition. For example, who must make repairs, when the sublandlord should be notified of issues, and when the sublandlord can access the property to carry out repairs.
Assignment and subletting
The Agreement restricts the subtenant from taking in lodgers, assigning, further subletting the property, or similar, without the sublandlord’s prior consent.
Expiry of the subtenancy
This section sets out what the subtenant should do when the subtenancy ends. For example, they should remove all possessions from the property and ensure it’s in the same state of repair that it was in at the start of the subtenancy.
Sublandlord's obligations
Some of the sublandlord’s obligations relevant to the Agreement are set out here. For example, regarding:
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maintaining the property
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allowing the subtenant quiet enjoyment of the property (eg not interfering with their occupation)
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correctly protecting and otherwise dealing with the subtenant’s tenancy deposit and providing them with information about its protection
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holding appropriate insurance
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ensuring the safety of the property’s furnishings
Default by the subtenant
This section sets out situations in which the sublandlord may retake possession of the property from the subtenant. For example, in certain situations regarding non-payment of rent.
General
This section deals with various other points of law that govern how this Agreement operates. For example:
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if the subtenant and sublandlord (or only the subtenant) can end the subtenancy early, this is set out here in a break clause, alongside the rules that must be followed to end the Agreement in this way
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how notices relevant to the Agreement should be sent to the parties
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the guarantor’s promise to guarantee (ie cover) the subtenant’s obligations under the Agreement, should the subtenant not fulfil these
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that the legal system of England must be used to resolve any disputes arising in relation to the Agreement (ie the Agreement’s jurisdiction)
Signatures
Next, the Agreement provides space for both the sublandlord and subtenant, and any guarantor, to sign the Agreement to make it legally binding.
Schedule - Master tenancy agreement
If you are including the text of the master tenancy agreement within your Sublease Agreement, this heading will be included. You should insert this text here.
Schedule - Landlord’s permission to sublet
If you are including the head landlord’s consent to subletting within your Sublease Agreement, this schedule is included. It contains a declaration of consent, which the head landlord must sign.
If you want your Sublease Agreement to include further or more detailed provisions, you can edit your document. However, if you do this, you may want a lawyer to review the document for you (or to make the changes for you) to make sure that your modified Sublease Agreement complies with all relevant laws and meets your specific needs. Use Rocket Lawyer’s Ask a lawyer service for assistance.
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Legal tips for sublandlords and subtenants
Make sure you abide by your legal obligations as a landlord
A sublandlord is a landlord like any other and, as such, they must abide by certain requirements in order to be a legally compliant and responsible landlord. Many of these obligations relate to ensuring a tenant’s health, safety and stability. Following these obligations maintains a healthy sublandlord-subtenant relationship, and ensures that you can exercise all available sublandlords’ rights (eg all available eviction methods), if needed.
For more information, read the FAQs for this document, Legal obligations of a landlord, Tenants’ rights, and Tenants’ and owners’ obligations.
Understand when to seek advice from a lawyer
In some circumstances, it’s good practice to Ask a lawyer for advice to ensure that you’re complying with the law and that you are well protected from risks. You should consider asking for advice if:
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the subtenant wants to run a business at the property
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you need to create a subtenancy where the sublandlord is a commercial tenant
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you want to rent out a property for more than £100,000 or less than £250 (or less than £1,000 in London) per year
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the property has 3 or more prospective subtenants that may form more than 1 household and you’re not sure if it counts as an HMO
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you need advice on how to meet one of your landlords’ legal obligations
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you want to create a subtenancy for a term longer than 2 years and 11 months
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the sublandlord has a guarantor in the master tenancy agreement
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this Sublease Agreement doesn’t cover everything you want or doesn’t meet your needs
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Sublease Agreement FAQs
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What is included in a Sublease Agreement?
This Sublease Agreement template covers:
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the subtenancy’s relation to the master tenancy agreement
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the option to include a guarantor
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the head landlord’s consent to subletting
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the sublandlord’s and subtenant’s rights and obligations regarding repair and maintenance, payments, pets, access, ending the subtenancy, and more
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ending the subtenancy
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Why do I need a Sublease Agreement?
A tenant may find themselves no longer wanting to live in a home they’ve rented. Sometimes, subletting the property to a subtenant (instead of ending the tenancy in some way) will be the best option.
Residential property is a complex area of law, which covers an important part of people’s lives - where they live. Consequently, many rights and obligations protect both property owners and occupiers to help tenants enjoy their homes whilst landlords protect their properties. As such, whenever a home is sublet, a comprehensive legal agreement should be used to help protect both parties and to establish clear expectations from the outset. For a residential sublet, the ideal document is a Sublease Agreement.
For more information, read Subletting residential property.
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How does subletting work?
Subletting (also known as ‘subleasing’ or ‘underletting’) is when a leaseholder (ie a tenant) rents out (ie ‘sublets’, ‘subleases’, or ‘underlets’) the property they have a lease (ie a tenancy) of to another party. The original tenancy does not end - a new one is simply created within (or ‘under’) it. In this context:
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the new tenancy created is a ‘subtenancy’, which can be created using a Sublease Agreement
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the tenant of the original tenancy, who has rented out their home via a subtenancy, is the ‘sublandlord’
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the tenant of the new subtenancy is the ‘subtenant’
A subtenancy can be of any type of tenancy. Creating a subtenancy of a certain type requires following the usual rules that apply to creating that type of tenancy. For example, this Sublease Agreement is for the creation of an assured shorthold tenancy (AST), which is the most common type of private residential tenancy in England. As such, various rules must be followed. For example:
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the subtenant must occupy the property as their main home
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the sublandlord cannot live at the property
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the property must be used as private residential accommodation
For more information, read Residential tenancies. This Sublease Agreement is designed to help you comply with the requirements for creating an AST.
For more information, read Subletting residential property.
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What are the master tenancy agreement and the head landlord?
The tenancy agreement that already exists between the sublandlord and their own landlord is referred to as the master tenancy agreement. The sublandlord is the tenant under the master tenancy agreement. The landlord under the master tenancy agreement is the head landlord.
The master tenancy agreement affects the Sublease Agreement and the terms on which the subtenancy can be made. The Sublease Agreement must not go beyond the terms of the master tenancy agreement. Any rights and restrictions contained in the master tenancy agreement must generally be applicable to the subtenancy too (unless the parties explicitly agree, in writing, to change them). This means that, when making your Sublease Agreement, you should not permit the subtenant to do anything the sublandlord isn’t permitted to do. For example, if the sublandlord isn’t allowed to keep a pet at the property, the sublandlord cannot grant their subtenant permission to do so. The Sublease Agreement helps you keep to this requirement by stating that the Agreement is subject to all rights, restrictions, and obligations imposed by the master tenancy agreement.
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Is subletting legal?
Subletting an AST is legal if the sublandlord has a right (eg the head landlord’s consent) to sublet a property.
A residential tenant doesn’t have an automatic right to sublet a property that they’re the tenant of. They will have a right to sublet if:
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the head landlord’s consent to subletting has been provided (eg within the master tenancy agreement or otherwise)
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the master tenancy agreement is of a type that has an implied term (ie a rule that’s automatically included in them by law) regarding subletting and this permits subletting
The exact situation for a given tenancy depends on the type of tenancy it is and other factors.
For more information, read Subletting residential property.
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Can this Sublease Agreement be used to sublet a room?
This Sublease Agreement can be used to sublet a room to a subtenant, as long as sublet is for the whole of the space the sublandlord rented and the sublandlord will no longer live in the room.
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How long should a subtenancy last for?
A subtenancy should be created for a period of time that’s shorter than the remaining duration of the original tenancy it’s created under.
This Sublease Agreement can be used to create a subtenancy with a fixed term of up to 2 years and 11 months, as tenancy or subtenancy agreements with a term of 3 years or more generally need to be witnessed. If you want to create a Sublease Agreement with an initial fixed term longer than 2 years and 11 months, Ask a lawyer for assistance.
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What rights does a subtenant have?
The rights a subtenant has in relation to a property depend on the type of tenancy they have. For example, a subtenant who has an AST will have the same rights as a normal AST tenant.
Similarly, a sublandlord will have the same landlord’s obligations as a normal landlord.
For more information, read Subletting residential property.
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What happens at the end of the fixed term?
When a fixed term AST comes to the end of its fixed term, if the parties don’t intentionally end the tenancy or formally extend it (eg by creating a new fixed term or periodic tenancy agreement), it will automatically convert into a statutory periodic AST. This is a type of tenancy that renews on a rolling basis from payment period to payment period (eg month to month). This applies to ASTs that are subtenancies, too.
The sublandlord cannot force the subtenant to leave at the end of the fixed term. If they want to evict them, they must use one of the valid methods of doing so. For example:
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a ‘no fault’ eviction using a Section 21 notice
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using a break clause included in the Sublease Agreement
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agreeing with the subtenant to end the tenancy
For more information, read Residential tenancies, Ending a fixed term tenancy, and our Tenant eviction FAQs.
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What is an assured shorthold tenancy (AST)?
ASTs are the main type of residential tenancy used in England. An AST grants a tenant the right of exclusive possession of the property for the length of their tenancy in exchange for market rent. Exclusive possession means that they can live in the property and the landlord cannot.
ASTs can be fixed term or periodic (ie rolling) tenancies. They can be ended by a landlord (ie the tenants can be evicted) if certain conditions are met. AST tenants have certain tenancy protections. For example, landlords must adhere to certain notice periods and requirements for carrying out evictions or rent increases.
For more information, read Residential tenancies.
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What else do I need to do when subletting a property?
When subletting a property, a sublandlord must meet all of the normal obligations of a landlord. For example, the obligations to:
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allow tenants to live in a property without the landlord disrupting them
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repair certain parts of the property (eg structural aspects and facilities for supplying water)
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ensure the property is fit for human habitation
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give their tenants certain information (eg regarding energy efficiency and safety)
For more information, read Legal obligations of a landlord, Tenants’ and owners’ obligations, Tenants’ rights, and the Make it legal checklist for this document.
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Can the Sublease Agreement have multiple head landlords, sublandlords, and/or subtenants?
The Sublease Agreement allows you to enter details for multiple joint sublandlords and multiple joint head landlords if all of them are individuals. You can Ask a lawyer for assistance entering joint head landlords if one or more of them are not individuals (eg if the landlord is 2 companies). As this Sublease Agreement is to be used to create an AST subtenancy under an existing AST, the sublandlord(s) should always be one or more individuals.
You can also have multiple joint subtenants. However, English law does not allow more than 4 joint tenants to hold the legal interest in a lease (ie a tenancy, including a subtenancy). More than 4 people may hold a tenancy and be protected by housing law (eg the protection available for ASTs under the Housing Act 1988), but in such instances, ownership becomes a more complex mixture of legal and beneficial interests. This Sublease Agreement should only be used to rent a house to up to 4 joint subtenants. If you want to create a Sublease Agreement for more than 4 joint subtenants, you can Ask a lawyer for assistance.
You should also note that, if 3 or more subtenants who form more than one household live at the property (eg they’re not one cohesive group, such as a family), the property could be classed as a house in multiple occupation (HMO). Landlords of HMOs must comply with additional regulations and licensing requirements.
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Can the landlord require a guarantor?
A guarantor is somebody who ‘guarantees’ the subtenant’s obligations under the Sublease Agreement. For example, their promise to pay rent. This means that, if the subtenant fails to meet their rent payments, the guarantor must pay the rent to the sublandlord instead.
The sublandlord can require that their subtenant has a guarantor. If they do, the guarantor must also sign this Sublease Agreement. This can be appropriate if, for example, the subtenant is a student or an early-career self-employed person with irregular income.
For more information, read Picking a tenant.
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Do I need an inventory of fixtures and fittings in the property?
An Inventory is a detailed list of all the items at the property and their condition. It is usual to have a detailed inventory of the items in the property that the subtenant can use. It is highly recommended that an inventory is made so that there is a record of the items in the property, should any disputes arise.
The items listed on the inventory must be left in the same condition when the subtenant moves out as when they moved in. If not, the sublandlord may be able to deduct money from the subtenant’s deposit to cover the cost of any repairs. You cannot charge a subtenant (or deduct from their deposit) for ‘fair wear and tear’ (ie mild damage that occurs over time as a normal result of everyday use).
You can make an inventory using our document and FAQs.
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Does the subtenant need to pay a deposit?
It is not compulsory for sublandlords to take a tenancy deposit (or ‘security deposit’) from their subtenants when they move in - but it is common practice to do so.
A tenancy deposit can cover the costs of any breakages or damage to the property or its contents, if necessary. If, when a subtenant leaves, there is no damage and no rent due, the money is returned to them. There are limits on the amount a sublandlord can require as a deposit.
Tenancy deposits must be placed in a government-authorised tenancy deposit scheme. Within 30 days of receiving the deposit, the sublandlord must also give the subtenant details of the scheme they’re using.
For more information, read Deposit protection schemes and Prescribed information for tenancy deposits.
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How much rent needs to be paid?
The sublandlord and subtenant can agree on how much rent should be paid. However, this Sublease Agreement is designed to create an AST, which means that you must set the rent within the rent limits that apply to ASTs. Set your rent:
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below £100,000 per year
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above £250 per year (or above £1,000 per year in London), and
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to be ‘market rent’ - ie at a similar rate to that for similar properties in the local area
If there are joint (ie more than one) subtenants, the rent specified in the Agreement is the total rent for the property. The subtenants are responsible for splitting rent payments between themselves, and each is legally responsible for the whole rent. This means that, if one subtenant fails to pay, the remaining subtenant(s) are responsible for the full rent.
You can decide who is responsible for various utilities and other charges - the subtenant, sublandlord, head landlord, or a combination of the parties.
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Can the rent be increased?
A sublandlord can only increase the rent during the course of a fixed term tenancy if either:
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the subtenant agrees to a rent increase (without the sublandlord exerting any illegitimate pressure on them to do so), or
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there is a rent review clause (ie a clause that lets the landlord increase the rent once per year in a specified manner) in the Sublease Agreement
Either way, the landlord must follow the correct procedures (eg those set out in a rent review clause) and the proposed rent increase must not be excessive or unfair. This Sublease Agreement lets you choose whether you want to include a rent review clause.
If the subtenancy is for less than 2 years, it’s recommended that the rent be fixed for the duration of the tenancy.
For more information, read Private renting rent increases.
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When is this Sublease Agreement inappropriate?
This Sublease Agreement is made for subletting property in England only. You can have a bespoke agreement drafted if you need to sublet property in Scotland or Wales.
If you want to rent out a spare room in or a section of your rented home, but keep living in the rest of the property yourself (ie as a live-in landlord), a Lodger agreement will be more appropriate. A tenant may need their landlord’s permission before taking in a lodger. For more information, read Taking in a lodger.
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Can a Sublease Agreement be amended?
You can change the terms of a Sublease Agreement once it’s been created. However, all parties must agree to the changes. Any changes should be recorded in writing either by creating a new document that sets out the terms of the subtenancy, or by making a (dated and signed) change to the original contract.
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