Sublease Agreements Explained
A sublease agreement is a written agreement between the original tenant of a property and another party, in which the subtenant pays rent to the tenant and not the landlord. The subtenant and original tenant are responsible for all of the terms set out in the rental agreement, just as if they were the actual landlord and tenant. Subleasing is often created when the original tenant plans to move out of their home before the lease term is over; the original tenant wants to get some of their money back by subletting the property.
A sublease agreement is not the same as an assignment. In a lease assignment, the tenant relinquishes all rights to the rented property over to a new tenant . This means the former tenant no longer has any obligation to anyone regarding that property. When a tenant subleases an apartment or home, they are still responsible under the lease. The original tenant is usually still responsible for paying the rent bill as it comes due, while the subtenant now has their own monthly bills under their own names. They both are obligated to the landlord under the terms of the original lease.
A sublease agreement in NYC is relevant because it allows tenants who need to move away temporarily to earn some money while also covering their apartment expenses. The new subtenant is able to get housing at a good price in a high-cost area and qualify for a rental just like a conventional tenant would.
Legal Requirements for NYC Subleases
The NYC housing laws aim to prevent discrimination. In New York City, it is prohibited for a landlord to refuse to rent or sublet based on race, color, national origin or ancestry, sex, religion, age, sexual orientation, religion, disability, marital status, military status, citizenship status or status as a victim of domestic violence. The Fair Housing Act extends these prohibitions into housing sales or rentals, including subleasing agreements.
In most circumstances, the prime tenant is required to obtain the landlord’s permission to sublet the space. The lease legalese is slightly different in each case, but according to NYC law, a tenant cannot unilaterally issue permission to sublet the apartment. If the prime tenant attempts to do so, the sublease agreement will not be legally valid, and the landlord may begin the eviction process.
It is important for both the tenant and the potential sublet to be aware that subletting an apartment is never an absolute right. A landlord may refuse if it is his or her "reasonable" right. Even if the lease language is permissive, the landlord may still have cause for refusal. If the apartment is in a pre-war building and is in a regulated building, then no sublet will be permitted in which the monthly rent exceeds the city rents set forth by the attorney general. No matter the case, unless there are legal requirements to do so, the landlord has no obligation to grant approval to the tenant.
How to Draft a NYC Sublease Agreement
The process to create and sign a NYC sublease agreement is nearly identical to that in creating a typical legal document. It can be divided into two parts, 1) drafting the essential clauses and 2) signing the contract.
A NYC sublease agreement should include the following clauses: In addition, a NYC sublease agreement should include the following details: NYC sublease agreements are the direct result of compromise on the part of both parties. Many times the subtenant will receive a substantially better deal than if they had attempted to rent directly from the landlord. The landlord in turn is able to keep the studio or apartment occupied rather than having it sit empty. Finally, in APR we act as a trusted intermediary who can ensure that the rights (and responsibilities) of both parties are properly served.
The process of signing a NYC sublease agreement involves the subtenant signing the sublease first. This allows for the greater protection for the original tenant. Once the subtenant has signed, the original tenant will sign the lease next. In the event that the original tenant has a co-tenant, the co-tenant’s signature must be collected after the original tenant’s signature and before signing the lease. At that point, the lease should be sent to the landlord for their signature. As soon as the landlord has signed the lease, the original tenant should send a copy to the subtenant retaining a copy of all pages for themselves after they are signed.
Common Sublease Mistakes
Despite your best efforts to stay organized in the eye of a move, mistakes can happen. Since a sublease agreement is a legally binding document, it’s important to keep in mind the major pitfalls that come with entering into one. Here are the most common mistakes that people make when signing a sublease agreement in NYC – and how you can avoid them.
Leaving Yourself Open to Liability: Renters insurance is pretty cheap. Even though the rental is only temporary, it should be noted in the lease that you, as the tenant, want to take on extra responsibility for any damages that may occur during your stay. Leaving this out could result in you being held liable for any damages to the apartment. Having said that, you also should not rock the boat too much. Because a sublease agreement is still a rental agreement, sometimes landlords try to make it more favorable for them than for the subletter. And landlords know that tenants are desperate for a place to stay once they’ve entered into a move. So, while you should try to get a written accident waiver, be wary of trying to negotiate too many changes to the lease. Especially if you are in desperate need of a place to live, it may not be in your best interest to press your luck when it comes to the terms of the sublease agreement.
Not Getting the Agreement Signed: Even if you trust the current renter of the apartment you are wishing to sublease, you always want to make sure that you both sign the agreement . This will both keep you accountable for any problems that could arise between you and the leaving tenant, which he or she may not be able to pay for, but will also protect you from being held liable for any problems that occur once the current tenant leaves. If he or she was planning on skipping town, you could be on the hook for those damages – even if the apartment isn’t in your name.
Not Documenting Existing Damage: Some landlords might try the "it was like that when I moved in" method on you, but don’t let them pressure you into accepting that as fact. If there is damage present, immediately take pictures and provide them for your sublease paperwork. When you move into a new apartment, there are bound to be some issues – a broken window here, a burned out light bulb there – so it’s ok to discuss these issues with your landlord. But, be sure not to accept liability for rent or repairs until you have thoroughly inspected the apartment. If, a few months down the line, the leak in the bathroom still isn’t fixed, it will be hard to ignore after you signed off that it was there when you first moved in. On top of the standard rule of covering all your bases, this could open you up to a lot of trouble if your sublease agreement states that the apartment was in good condition when you moved in.
Resolving Sublease Conflicts
Disputes that may arise in a subleasing arrangement, under applicable law, may include:
• A tenant attempting to skirt rent control by subletting to a new tenant who pays market value for the property, forcing the original tenant to move out.
• A tenant subletting a property at a significant markup, but refusing to move out when the landlord has found a replacement.
• Neglect by the ongoing tenant.
• Alterations made by the subtenant against the lease agreement.
• Use of the premises for purposes not allowed under the lease or generally prohibited by law, such as prostitution or running an illegal gambling operation.
• Failure to sign or pay an oral rental agreement.
• Not vacating the room on agreed upon terms, such as time and conditions for cleaning and repair.
• Unpaid rent payments by an occupant without due cause.
• Use of the premises for illegal or immoral purposes, or in any manner other than that agreed upon; subtenant does not have exclusive right to the leased property.
• Oral modification or waiving of the written rental agreement, unless the waiver is signed by all parties to the rental agreement.
• Property damage, such as cracking the sink, stains on the carpet, and scratches on the porcelain in the bathtub or mast basin.
• Vandalism, such as breaking mirrors, writing on the walls, punching holes in the walls, and damaging furniture and appliances.
• Nuisance complaints from Landlord or neighbors.
• Allowing unauthorized occupants.
• Pets.
• Criminal activity.
• Nonpayment of rent.
• Condition of unit found to be unsatisfactory/ unlivable.
New York law gives tenants the right to "enjoyment" of their premises throughout the tenancy. Your right to quiet enjoyment entitles you to a home free from intrusion by your landlord. If your landlord takes away your quiet enjoyment of a dwelling, then you have a legal basis for complaint. In most situations, notice will need to be given to your landlord before you can take further action in court. Most valid complaints involve the following:
• The dwelling unit is substantially unfit and not habitable as a residential abode;
• The dwelling unit was partly destroyed or substantially interfered with by factors beyond the tenant’s control; or
• The landlord has refused to act to give the tenant the necessary services for the dwelling unit.
NYC Subleasing Tips
Both sublessors and sublessees should take proactive measures to ensure a successful subleasing arrangement. For sublessors, it is important to maintain an open line of communication with the sublessee and the landlord. The landlord may have a requirement that the sublease is submitted for its approval prior to execution. It is also critical to address any financial arrangements in the sublease agreement. An effective sublease will typically provide that the sublessee will pay the fixed rental amount directly to the landlord (in accordance with the original lease), and that any additional rent, late payments and other charges are to be paid to the sublessor . This arrangement will ensure that the subtenant will not be able to withhold payment of rent and then subsequently use the withheld payment as leverage against the sublessor who owes a delinquent payment to the landlord. If the sublessor is not able to collect past due rent from the sublessee, the sublessor will still be obligated for the full rental amount under the lease with the landlord. For the sublessee, the relationship with both the landlord and the sublessor is key. Maintain an open dialogue with both parties. Follow the terms of the sublease very closely. Pay particular attention to the details of any step rent provisions to avoid situations where the subtenant continues to make payments based on the terms of the original lease.