1
Review the master lease for subletting conditions
Before completing the template, locate the subletting clause in the master lease. Note any restrictions β approval criteria, profit-sharing prohibitions, or notice requirements β that must be reflected in this agreement.
π‘ Many leases require the landlord to respond to a sublet request within a specific number of days. Missing this deadline can constitute deemed consent in some jurisdictions.
2
Identify all three parties accurately
Enter the full legal name of the landlord, tenant, and proposed sublessee. For entities, use the registered corporate name. For individuals, use the name as it appears on government-issued ID.
π‘ If the landlord is a corporate entity managed by a property manager, confirm who has authority to execute consent β the property manager may need a power of attorney.
3
Describe the premises with precision
State the full civic address, unit number, and any portions of the property excluded from the sublet β such as a parking stall the tenant is retaining or a storage locker.
π‘ For commercial sublets, attach a floor plan sketch marking the exact sublet area to prevent boundary disputes later.
4
Set the sublet term with specific dates
Enter the exact start and end dates. Confirm that the end date falls on or before the master lease expiry date. Add a holdover clause specifying what happens if the sublessee does not vacate on time.
π‘ Build in a one- to two-day buffer before the master lease expires so the tenant has time to inspect and return possession to the landlord.
5
Enter rent and confirm compliance with local law
State the monthly rent the sublessee will pay, the due date, and payment method. Check whether local rent control or the master lease restricts the sublessee's rent to the amount in the master lease.
π‘ In rent-controlled jurisdictions like New York City or San Francisco, charging the sublessee more than the regulated rent is a legal violation β not just a lease breach.
6
Attach the relevant master lease provisions
As Schedule A, attach the pages of the master lease covering permitted use, property rules, and tenant obligations that the sublessee must comply with. Have the sublessee initial each page.
π‘ A sublessee who has initialled the master lease provisions cannot later claim ignorance of rules they violated β this protects the tenant in any dispute with the landlord.
7
State the security deposit amount and return conditions
Enter the deposit amount, the trust account or holding arrangement, and the timeline for return after the sublet ends. Confirm the amount complies with local maximum deposit limits.
π‘ In most Canadian provinces and several US states, residential security deposits are capped at one to two months' rent β exceeding the cap can void the deposit clause entirely.
8
Execute before the sublessee takes possession
All three parties β landlord, tenant, and sublessee β should sign the agreement before the sublessee moves in or takes keys. Date the signatures and retain a signed copy for each party.
π‘ Use Business in a Box eSign to timestamp execution and store the fully executed copy in a secure location accessible to all parties.