This guide reviews the key considerations that go into creating a commercial sublease agreement.

Landlord's Permission to Sublet

If the original lease does not give the tenant the right to sublet the unit, the landlord will need to provide written consent to sublet. Our agreement includes this in the Exhibit B attachment to your download.

Executing Your Sublease

Have each tenant and subtenant sign the sublease agreement. Also attach a copy of the original lease as Exhibit A. Each party should also sign their initials at the bottom of each page of the lease and the attachments. This will ensure that the subtenant is aware of their responsibilities and provide evidence of this in the event of a dispute.

Move-In/Move-Out Inspection Checklist

An inspection checklist is included for convenience for the landlord to complete prior to occupancy and again when the tenant has left the unit. This will provide a record of the condition of each part of the unit, showing any damage that the tenant is responsible for. State law requires that you complete the checklist in the following states:

• Arizona (subtenants also have the right to be present at a move-out inspection)
• Georgia
• Hawaii (subtenants also have the right to be present at a move-out inspection)
• Kansas (completed jointly within five days of move-in)
• Kentucky (completed jointly)
• Maryland
• Massachusetts (only required if a security deposit is collected)
• Michigan
• Montana (only required if a security deposit is collected)
• Nevada
• New Hampshire
• North Dakota
• Virginia (completed within five days of move-in by the parties separately or together, and the report must disclose the known presence of mold)
• Washington (only required if a security deposit is collected)
• Wisconsin (the subtenant has a right to inspect the rental unit, provide a list of defects, and receive a list of damages charged to the prior tenant)

Ready To Get Started? Create a Commercial Sublease Agreement

Step 1: Gather Information

When preparing to complete a commercial sublease agreement, be sure to collect the following information:

• Landlord, tenant, and subtenant names, addresses, and phone numbers
• Effective date of the lease between the landlord and tenant
• Start and end date of the subtenancy
• Rent amount
• Accepted payment methods
• Fees
• Subtenant's business type
• Furnishings provided, if any
• Utility responsibilities
• Insurance requirements

Step 2: Answer Basic Questions

You may use the information gathered on Step 1 to complete our questionnaire. We provide instructions to guide you through each step of the process and help you tailor your document to you specific circumstances. You may notice that the questions presented to you dynamically change depending upon your answers and jurisdiction.

Step 3: Review and Sign

Review your agreement to make sure it meets your needs and is free of mistakes. Any textual edits may be made after downloading your document from your account dashboard and opening it in Microsoft Word or Google Docs. When signing the agreement, you are free to use electronic signatures, which will help you avoid having to print copies.

Step 4: Distribute and Store Copies

Give a copy of the signed agreement to each party and store yours in a safe location. Make an electronic copy as an additional backup if possible.

Step 5: Periodically Review and Update

Occasionally reviewing the details of your agreement will help you stay familiar with each party’s responsibilities. You can use a contract amendment to make any needed changes or additions down the road.

In the event that the parties want to renew the agreement at the end of the lease term, simply open your sublease agreement in your LegalNature account dashboard and update the questionnaire.

Step 6: Complete Related Documents

At the end of a fixed-term tenancy, the landlord and tenant will need to sign a new commercial lease agreement in order to extend the term of the agreement. The landlord may also adjust the rental payments and impose any new requirements at this time.

It is also highly recommended for landlords and business owners to create an LLC in order to hold and protect their property title and business from many personal liabilities that often plague sole proprietors.

Ready To Get Started? Create a Commercial Sublease Agreement