How to Terminate Your Sublet Rental Agreement Early

Subletting can be a great solution when you need to vacate your rental temporarily. However, there are several factors to consider and steps to follow to ensure a smooth and successful sublet.

A sublet rental agreement is an agreement drawn by an existing tenant and a potential subtenant. It allows the subtenant to occupy all or part of the rented home or apartment. The subtenant has to pay rent to the tenant and not to the landlord. The rent obtained from the subtenant can be retained by the tenant. The landlord of the premise collects the regular rent from the tenant. Even if the subtenant fails to meet certain responsibilities, the tenant remains responsible and has to pay the landlord the agreed rent on time.

Early Termination of a Sublease

Sometimes, the subtenant may need to terminate the sublease early. If this happens, they must provide a one-month notice to the tenant and give valid reasons for leaving. Early termination can be arranged, but it typically comes with additional costs. The subtenant may need to pay the rent through the termination month and an early termination fee. This fee can vary but may be as much as three months’ rent.

Before the early termination is processed, the subtenant should:

1. Sign an Early Termination Request: This form should outline the subtenant’s intent to leave early, the reason for leaving, and any financial obligations. In California, subleases typically require a 30-day notice to terminate. However, it’s important to review the specific terms of the sublease agreement and consult relevant laws to ensure compliance. Renters should also check their state laws, as they may have specific regulations regarding the termination of a sublease.

2. Pay All Outstanding Rent: The subtenant is responsible for paying all rent and utility bills up until the termination date.

3. Return the Property in Good Condition: The subtenant must return the property in the same condition it was in at the start of the sublease, accounting for any wear and tear.

Additional Considerations for Subtenants

1. Security Deposit: The subtenant will likely pay a security deposit at the start of the sublease. This deposit should be returned in full, provided there is no damage or unpaid rent. Both the tenant and subtenant should conduct a thorough inspection of the property before and after the sublease.

2. Communication with the Landlord: In some cases, it might be necessary for the subtenant to communicate directly with the landlord, especially if any issues arise. However, the tenant is generally the primary point of contact with the landlord.

3. Ongoing Legal and Financial Obligations: It’s essential for both the tenant and subtenant to understand that the tenant remains legally and financially responsible for the property. If the subtenant fails to fulfill their obligations (like not paying rent or causing damage), the tenant is the one who will be held accountable by the landlord.

What Happens at the End of the Sublease?

At the termination of the sublease, the subtenant must:

1. Clear Any Bills: Ensure that all rent, utilities, and any other outstanding bills are fully paid.

2. Condition of the Property: The subtenant must return the property in the same condition they received it, barring normal wear and tear.

3. Return the Keys: All keys, fobs, or access devices provided at the beginning of the sublease must be returned to the tenant or landlord.

4. Sign Necessary Documents: Both parties may need to sign documents to officially end the sublease. The tenant should also ensure the subtenant receives any necessary closure letters from relevant agencies.

Other Things to Note

All rental obligations until the termination date have to be paid by the subtenant in addition to all utility costs and bills that accrue until then for which the subtenant is directly responsible. On the termination date, the subtenant has to surrender the subleased premises in the same condition as it was received on the commencement date. The subtenant should receive all the appropriate closure letters from relevant government agencies before the termination date. The security deposit that’s paid by the subtenant should also be given back on time.

A subtenant who has to surrender the premise for personal reasons can do so, but must ensure that all the tips mentioned above are taken into consideration. For more detailed information on subletting, including key tips and legal considerations, check out this helpful guide from AHPM.