Sublease Agreement Cost

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What does a sublease agreement cost? If you are the leaseholder on a property and want to transfer the lease to another party, you may be wondering how much this contract will cost. Let’s explore this question and review some general information about sublease agreements and how they work.

How Much Does a Sublease Agreement Cost?

A sublease agreement is a legal contract between a tenant who holds the lease to a property and a third party who wants to take over the lease. First, the tenant must obtain permission from their landlord to sublet the property. If the landlord agrees, the new party will move into the space and become responsible for the rent payments.

It is most common to see a sublease situation when a party is locked into a lease but wants to vacate the property before the lease expires. Subletting the lease to another party allows the original tenant to move without breaching the original lease agreement.

You may also run into a sublease situation if a person goes on an extended vacation and wants to have someone live in their home and pay the rent while away.

A sublease agreement can be a tricky document and needs to be drafted correctly to be legally binding and to protect the interests of all parties involved. Therefore, it is common for a leaseholder to hire an experienced attorney to draft a sublease agreement to avoid legal issues.

A lawyer who has experience drafting lease and sublease agreements will know the local state laws surrounding rental properties and ensure that your contract includes all necessary terms and conditions.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a sublease agreement is $475.

What’s Included in a Sublease Agreement

A sublease agreement must include all the information in a regular lease, plus additional terms specific to the tenant and the party agreeing to sublease the property.

Sublease agreements can easily be customized to fit the needs of all parties involved, but the most basic sublease agreement should include the following key components:

  • Monthly rent
  • Who is responsible for utilities
  • What party must pay for repairs and maintenance
  • Length of the agreement
  • Liability information
  • Guest policy
  • Security deposit
  • Terms of the original residential or commercial lease agreement
  • Landlord permission
  • Signatures of all involved parties and dates

When you hire an attorney to draft or review your sublease agreement, they will ensure that your agreement includes all necessary terms to be legally enforceable. A sublease agreement must protect the landlord, the tenant, and the subleasing party.

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Considerations Before Executing a Sublease Agreement

Before subleasing your property, there are a few considerations you need to keep in mind.

  1. Get Your Landlord’s Permission. You must obtain your landlord’s permission before subleasing your property. Some lease agreements prohibit subletting, and a tenant could be in breach of contract if they sublease their property.
  2. Get Your Roommate’s Permission. If your original lease agreement includes a roommate, you need to have their permission to sublease the space. Because they are a party to the original lease agreement, they must agree to the change in terms when you sublease your space.
  3. Determine the Type of Sublease Agreement to Use. There are two common sublease agreement forms. The first is where the original tenant becomes a co-tenant of the new renter. This will hold the original tenant liable for any damages while the new party is in the rental space.

In the second type of sublease agreement, the original renter becomes the “landlord,” and the new renter becomes the tenant. Their agreement with the property owner still binds the original tenant, but they cannot be held liable for any damages that may happen while the new tenant is in the rental space.

Sublease Agreement Projects

Sublease Agreement Drafting

Sublease agreements are important documents because they lay out the terms and conditions surrounding a rental property. An agreement that is not drafted correctly could leave landlords and tenants open to liability and breach of contract concerns.

It is common for tenants who want to sublet their apartments to hire an attorney to draft a valid sublease agreement. An experienced attorney will know what to include in the agreement and any real estate and rental property laws that may affect the contract.

Sublease Agreement Review

Some renters decide to draft their own sublease agreements. Again, using a template is possible; however, you should always have an attorney review your contract before using it. An attorney will ensure that the contract contains all necessary terms and conditions and adheres to state laws.

If you are a tenant and you are thinking about signing a sublease agreement, you may want to have an attorney review the agreement before you agree to sign it. A lawyer can go over the agreement and ensure that you understand your rights and responsibilities. For example, certain lease agreements may hold you liable for property damage while other agreements may not.

Sublease Agreement Drafting Cost

You will incur legal fees if you hire a lawyer to draft a sublease agreement. In addition, a lawyer will charge for the time it takes to draft the contract. You may also be responsible for additional fees for office staff, consultations, and communication.

ContractsCounsel’s marketplace data shows sublease agreement drafting costs to be $525 across all states.

Sublease Agreement Review Cost

If you choose to draft your own sublease agreement or think about signing a sublease agreement, you can hire a lawyer to review the contract. A lawyer will charge for their time reviewing your agreement and may also charge for communication or consultations.

ContractsCounsel’s marketplace data shows the average sublease agreement review costs to be $400 across all states and industries.

How Do Lawyers Charge for a Sublease Agreement?

Hourly Rates for Sublease Agreements

Hourly rate fee structures are common for contract lawyers to charge their clients. When using an hourly rate structure, the lawyer will charge a client for the amount of time working on a project.

Lawyers tend to prefer this fee structure because it ensures that the lawyer is paid for their time even if the case takes longer than expected. However, the downside for clients is that they will not know the total amount of legal fees until after the job is complete.

ContractsCounsel’s marketplace data shows the average hourly rate for a sublease agreement lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for Sublease Agreements

When a lawyer uses a flat rate fee structure, they will estimate the amount of time a project will take to complete and then quote the client a total flat rate price for legal services.

Clients prefer this fee arrangement because there are no surprises, and they know exactly how much they will be paying for legal services. However, clients should always understand what is included in this fee arrangement because additional services like revisions may not be included.

ContractsCounsel’s marketplace data shows the average flat fee rate for a sublease agreement is $475.

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