
Sublease Basics
Why won't an oral sublease agreement be sufficient for me?

The problem with oral sublease agreements is that they can be difficult to enforce. If a dispute arose, a court would have to hear evidence and decide whose version of the facts to accept. If there is a written agreement, courts will generally be obligated to uphold the terms of the written agreement. Some jurisdictions require that any contracts involving land must be in writing to be enforceable.

What is addressed in a sublease agreement?

A sublease agreement typically addresses the following:

1. the names of the parties (the tenant, the subtenant and the landlord);

2. information of the master/original lease;

3. the term of the sublease and whether the sublease is fixed or periodic; and

4. the amount of rent payable (if different from the master lease).


1. the provisions of any utility payments;

2. the provisions of any security/damage deposit; and

3. any insurance provisions.

What is the governing law of my Sublease?

The governing law will be the jurisdiction in which the property is located, regardless of which jurisdictions the Sublandlord (original tenant) and Subtenant (new tenant) reside.

The Parties
Who is the Sublandlord?

The Sublandlord (or the original tenant) is the person who entered into a lease with the original Landlord, and who is now leasing all or part of the Landlord's property to the Subtenant.

Who is the Subtenant?


The Master Lease
What is the Master/Original Lease?

The Master/Original lease is the lease that the Sublandlord (the original tenant) entered into with the Landlord. The Subtenant's interest in the property cannot exceed the interest created by the original lease. The sublease will usually require the Subtenant to comply with all the provisions of the master lease in addition to the provisions of the Sublease.



The Sublease
What does "Automatic Renewal" mean?




Damage Deposits and Insurance
What is a damage deposit?

A damage deposit is a sum of money paid by the Subtenant to the Sublandlord (original tenant) to guarantee that the Subtenant will not damage the property. The Sublandlord holds the damage deposit for the term of the sublease to insure that the Subtenant does not default on the terms of the sublease agreement or otherwise damage the property. Should the Subtenant damage the property (normal "wear and tear" excluded), the Sublandlord is entitled to recover the damages from the damage deposit. Usually the Subtenant must provide the Sublandlord with the damage deposit at the start of the sublease term. At the end of the sublease term, the Subtenant will receive the deposit back minus any deductions for repairs/restoration.

How much should the damage deposit be?

Damage deposits are usually equivalent to the value of one month's rent. The maximum amount is usually governed by the legislation in each jurisdiction.

Should the Subtenant have insurance?

It is strongly recommended that the Property should be insured. However, the Subtenant does not need to have their own insurance if the Sublandlord has obtained sufficient insurance to cover the Subtenant. Typically, the Subtenant will still need to insure their own contents at a minimum.

Inspection Forms
What is a check-in inspection form?

The check-in inspection form is completed by the Subtenant within a reasonable amount of time after the Subtenant takes possession of the property. This form contains a description of the condition of the property at the time of the Subtenant's possession, and will be used at the end of the sublease term as a comparison tool to determine if the Subtenant caused any damage to the property. It will protect the Subtenant from the Sublandlord claiming damages were caused by the Subtenant when those damages were there at the beginning of the term.


There is no statutory minimum amount of time, but the Sublandlord should give the Subtenant a reasonable amount of time. Depending on the circumstances under which the Subtenant will take possession, a reasonable period of time would likely be between 7 and 30 days. Some sublandlords will go through the premises and complete the inspection form with the subtenant when the subtenant is first given possession of the premises.


Yes, the Sublandlord can determine the extent to which the Subtenant can make alterations. The Sublandlord may reduce the Subtenant's right to make improvements from the level established for the Sublandlord in the Master Lease, but the Sublandlord cannot increase the Subtenant's right to make alterations beyond the level outlined in the Master Lease. Typically, the master lease will require that the landlord consent to any alterations.

Do I need to create the Landlord's Consent to Sublease?


What additional purposes can the Subtenant make of the property?


Signing Details


Who should sign the Sublease?


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