Before choosing a sublet agreement for your property, you must first know what there is to choose from.
Periodic Tenancy – For Situations When You Want Flexibility
Periodic tenancy can be any arrangement such as week to week or month to month. Typically you will see month to month as the most widely used format.
With periodic tenancy’s there is no end date, the lease is renewed every week or month (depending on the format), and will continue into the future until one party ends it. There is both a benefit and drawback to this type of sublet agreement.
For one, it’s easy to end the sublet agreement. Depending on your local laws, typically all you need is a 30 or 60 day written notice to quit. However, the same goes for the tenant. They can end the lease in the same manner, and thus the onus would be on you to find another tenant quickly to prevent lost rent.
This type of sublet agreement is good if you may be selling or possibly re-renting your property in the near future, because you’ll have the freedom to end it whenever you’d like.
Fixed-Term Lease - For Situations When You Want Stability
Fixed tenancies have a definitive start and stop date. The lease cannot be ended until the stop date, unless your tenant agrees to (aka surrender of tenancy).
The only other reason you could end the lease early is if there is a breach in the contract. If the tenant doesn’t pay rent, or fails to live up to other lease requirements, then you can evict them.
Both you and the tenant are locked into the duration of the lease. The tenant cannot leave without your permission, if they do they are still responsible for the rent payments throughout the duration of the lease.
Landlords that want stable long-term rental income should entertain sublet agreements of this nature. Specifically if you find yourself with a reliable tenant, you’ll want to lock them into a long term contract.
Tenancy at Will – For Situations When You Want Informality
For a quick and easy way to get your property rented you can go about using a “tenancy at will.”
This is typically an informal written agreement with some terms and conditions. This sublet agreement is easy to end also, typically a 30 days written notice will suffice.
If your plan is to have short-term tenants, or to rent to someone you completely trust, this type of sublet agreement may work for you. This also can serve as a temporary solution with a tenant until you can get a formal contract in place.
Brian is a landlord and rental industry expert who manages EZ Landlord Forms, an online resource that offers a free rental application and state-specific sublet agreement forms.
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