Simple Sublease Agreement Template
SUBLEASE AGREEMENT
This Sublease Agreement (the "Agreement") is made and takes effect on [Effective Date] (the "Effective Date").
Sublessor: [Full Legal Name of Sublessor], a [type of entity] organized under the laws of [Jurisdiction], with its main office at [Address], represented by [Name and Title of Authorized Signatory] (the "Sublessor").
Subtenant: [Full Legal Name of Subtenant], a [type of entity] organized under the laws of [Jurisdiction], with its main office at [Address], represented by [Name and Title of Authorized Signatory] (the "Subtenant").
The Sublessor and the Subtenant are each a "Party" and together the "Parties."
Background: The Sublessor leases business premises from the Landlord under the Main Lease. The Sublessor wants to sublet the Property to the Subtenant for business use, and the Subtenant wants to rent it. The Landlord has given its written consent to this sublease. The Parties therefore agree to the terms below.
Definitions and Key Terms
"Main Lease" means the lease agreement dated [Date of Main Lease] between the Landlord, as landlord, and the Sublessor, as tenant, for the premises at [Address of Building/Premises], together with all amendments, extensions, and side letters in effect on the Effective Date or made later in line with this Agreement.
"Landlord" means [Full Legal Name of Landlord], the owner or head landlord of the premises under the Main Lease, and anyone who later takes over the Landlord's rights under the Main Lease.
"Property" means [all / the following part] of the premises leased under the Main Lease, described as [description of the space, such as floor, suite number, and approximate square footage], at [Address], together with any fixtures, fittings, and equipment listed here: [list of included items, or "none"]. It also includes the right to use the common areas of the building on the same basis that the Main Lease allows the Sublessor to use them.
"Landlord's Consent" means the written consent to this sublease that the Landlord signed on [Date of Consent], including any conditions it contains.
"Sublease Term" means the period starting on [Start Date] (the "Start Date") and ending on [End Date] (the "End Date"), unless this Agreement ends earlier under its terms.
"Rent" means the fixed monthly amount the Subtenant must pay for the Property, as set out in the Rent and Payment section, including any annual increases.
"Additional Charges" means all amounts other than Rent that the Subtenant must pay under this Agreement. This includes the Subtenant's share of operating expenses, property taxes, insurance costs, and service charges that the Landlord bills to the Sublessor under the Main Lease, as well as late fees, interest, and costs the Sublessor recovers from the Subtenant.
"Security Deposit" means the amount the Subtenant pays to the Sublessor as security for performing its obligations, as described in the Security Deposit section.
"Permitted Use" means using the Property only for [description of the Subtenant's business activity] and for related office and administrative purposes, as long as that use is also allowed under the Main Lease and applicable law.
The Property and the Main Lease
The Sublessor sublets the Property to the Subtenant, and the Subtenant rents the Property from the Sublessor, for the Sublease Term and on the terms of this Agreement.
The Subtenant has inspected the Property and accepts it "as is," in its condition on the Effective Date. The Sublessor makes no promises about the condition of the Property, its suitability for the Subtenant's business, or its compliance with zoning, building, or accessibility rules, except as expressly stated in this Agreement.
The Subtenant confirms that it has received and read a copy of the Main Lease. The Sublessor may redact financial terms that do not affect the Subtenant's obligations.
This sublease is subject to the Main Lease. The Subtenant has no greater rights in the Property than the Sublessor has under the Main Lease. For the Property and the Sublease Term, the Subtenant must comply with every tenant obligation in the Main Lease, except for paying rent to the Landlord and any obligation this Agreement expressly excludes.
The Subtenant must not do or fail to do anything that would cause the Sublessor to breach the Main Lease. If a term of this Agreement conflicts with the Main Lease, the term that places the stricter obligation on the Subtenant applies.
The Sublessor is not responsible for services, repairs, or other obligations that the Landlord must provide under the Main Lease. If the Landlord fails to perform, the Sublessor will, at the Subtenant's written request and at the Subtenant's cost, make reasonable efforts to ask the Landlord to perform. The Sublessor does not have to start legal action against the Landlord.
If the Main Lease ends for any reason, this Agreement ends automatically on the same date. The Sublessor will not be liable to the Subtenant for that, unless the Main Lease ended because the Sublessor breached it and the breach was not caused by the Subtenant.
The Sublessor may amend, extend, or renew the Main Lease without the Subtenant's consent, as long as the amendment does not materially reduce the Subtenant's rights to use the Property during the Sublease Term or materially increase the Subtenant's payment obligations.
Rent and Payment
The Subtenant will pay Rent of [amount] [currency] per month, plus any applicable sales, use, or similar taxes on that amount.
Rent is payable monthly in advance, on or before the [day] day of each month, without any request from the Sublessor. The Subtenant will pay the first month's Rent when it signs this Agreement. Rent for any partial month at the start or end of the Sublease Term will be prorated on a daily basis.
On each anniversary of the Start Date, Rent will increase by [percentage]% over the Rent payable just before that anniversary.
The Subtenant will also pay [percentage]% of all operating expenses, property taxes, insurance costs, and service charges that the Landlord bills to the Sublessor under the Main Lease for the Sublease Term, as Additional Charges. The Sublessor will pass on the Landlord's statements, and the Subtenant will pay its share within [number] days of receiving the invoice. Any year-end adjustment the Landlord makes will be passed on to, or credited to, the Subtenant in the same proportion.
All payments must be made by [bank transfer / other method] to the account the Sublessor names in writing, in immediately available funds. Payments are made only when the Sublessor actually receives them.
The Subtenant must pay Rent and Additional Charges in full, without any deduction, set-off, or counterclaim, unless this Agreement expressly allows it.
If any amount is not paid within [number] days after its due date, the Subtenant will pay a late fee of [percentage]% of the overdue amount. Interest will also accrue on the overdue amount at [percentage]% per year, or the highest rate permitted by law if that is lower, from the due date until payment. The Sublessor will apply any payment first to late fees and interest, then to Additional Charges, and then to Rent.
The Subtenant will reimburse the Sublessor for any bank charges, collection costs, and reasonable attorneys' fees the Sublessor incurs because of a late or failed payment.
Landlord's Consent
The Sublessor confirms that it has obtained the Landlord's Consent and has given the Subtenant a copy of it.
This Agreement is subject to the Landlord's Consent. The Subtenant must comply with every condition in the Landlord's Consent that applies to the subtenant or to the use of the Property.
The Subtenant will reimburse the Sublessor for any fees or costs charged by the Landlord in connection with the Landlord's Consent, up to [amount] [currency], within [number] days of receiving an invoice. This includes the Landlord's attorneys' fees and administrative charges.
The Landlord's Consent does not create a direct landlord-tenant relationship between the Landlord and the Subtenant, and it does not release the Subtenant from any obligation to the Sublessor.
The Subtenant may not assign this Agreement, further sublet any part of the Property, share occupancy, or grant any license over the Property without the prior written consent of both the Sublessor and the Landlord. The Sublessor may give or withhold its consent at its sole discretion. A change of control of the Subtenant counts as an assignment for this purpose.
If any further consent from the Landlord is needed during the Sublease Term, for example for alterations or signage, the Subtenant will make its request through the Sublessor and will pay all related costs.
If the Landlord's Consent is withdrawn, ruled invalid, or found ineffective for any reason not caused by the Sublessor, this Agreement will end on the date the Sublessor names in a written notice. Neither Party will be liable to the other for that early ending, except for amounts already owed.
Sublease Term and Early Termination
This Agreement starts on the Effective Date. The Subtenant's right to occupy the Property starts on the Start Date and ends on the End Date, unless this Agreement ends earlier under its terms.
This sublease is for a fixed term. The Subtenant has no option to renew or extend it. Any extension must be agreed in writing by both Parties and approved by the Landlord where the Main Lease requires it.
If the Sublessor cannot deliver the Property on the Start Date for reasons outside its reasonable control, the Sublessor will not be liable for the delay, and this Agreement will remain in force. In that case, Rent will not be payable until the Property is delivered. If delivery has not taken place within [number] days after the Start Date, either Party may end this Agreement by written notice, and the Sublessor will return any prepaid Rent and the Security Deposit.
The Subtenant may end this Agreement early by giving the Sublessor at least [number] months' written notice. The termination date may not be earlier than [earliest permitted termination date]. Early termination by the Subtenant is valid only if, both on the notice date and on the termination date, the Subtenant is not in default and has paid all amounts due. The Subtenant must also pay an early termination fee equal to [number] months' Rent, either with its notice or no later than [number] days after it.
The Sublessor may end this Agreement early, for any reason, by giving the Subtenant at least [number] days' written notice. If the Sublessor does this for reasons other than the Subtenant's default or the end of the Main Lease, the Sublessor will refund any Rent paid for the period after the termination date. This refund is the Subtenant's only remedy for the early ending.
Ending this Agreement early does not affect any rights or obligations that arose before the termination date, including the Subtenant's obligation to pay amounts owed up to that date and to comply with the Moving Out and Returning the Property section.
Security Deposit
When it signs this Agreement, the Subtenant will pay the Sublessor a Security Deposit of [amount] [currency], equal to [number] months' Rent.
The Sublessor may keep the Security Deposit with its own funds and does not have to pay interest on it, unless the law requires otherwise.
The Sublessor may use all or part of the Security Deposit, at any time and without first asking the Subtenant, to cover unpaid Rent or Additional Charges, the cost of repairing damage beyond normal wear and tear, cleaning and removal costs, amounts the Landlord claims from the Sublessor because of the Subtenant, and any other loss caused by the Subtenant's breach.
If the Sublessor uses any part of the Security Deposit during the Sublease Term, the Subtenant must pay the amount needed to restore it to its full value within [number] days of receiving written notice.
The Subtenant may not treat the Security Deposit as payment of the last month's Rent or of any other amount it owes.
Within [number] days after the Subtenant has moved out and returned the Property in line with this Agreement, the Sublessor will return the Security Deposit, less any deductions, together with a written list of those deductions. If the Landlord's final accounting under the Main Lease is still pending, the Sublessor may hold back a reasonable amount until it is completed.
If the Sublessor transfers its interest in the Main Lease, it may transfer the Security Deposit to the new tenant. Once the transfer is made, the Sublessor is released from any further liability for the Security Deposit.
Utilities and Running Costs
The Subtenant will pay for all utilities and services used at the Property during the Sublease Term. This includes electricity, gas, water, sewer, heating, cooling, telephone, internet, data services, and trash and recycling removal.
Where possible, the Subtenant will open utility accounts in its own name before the Start Date and will pay the providers directly. The Subtenant will also pay any connection fees, deposits, or setup charges the providers require.
If any utility is not separately metered or is billed to the Sublessor or the Landlord, the Subtenant will pay [the metered amount / a share of [percentage]% / a share reasonably determined by the Sublessor] of that cost. The Subtenant will pay within [number] days of receiving the Sublessor's invoice.
The Subtenant will also pay all other running costs of its business at the Property. This includes cleaning, janitorial services, pest control, security monitoring, and after-hours heating or cooling that the Landlord charges for.
The Sublessor is not liable for any interruption, reduction, or failure of utilities or services. Any such problem will not reduce Rent or allow the Subtenant to end this Agreement, unless the Sublessor itself receives a matching rent reduction under the Main Lease. In that case, the Subtenant will receive a proportionate share of that reduction.
The Subtenant must not overload the electrical, plumbing, or heating and cooling systems, and must not install equipment that needs extra utility capacity without the prior written consent of the Sublessor and, where required, the Landlord.
At the end of the Sublease Term, the Subtenant will arrange final meter readings, close its utility accounts, and pay all final bills. The Sublessor may deduct any unpaid utility amounts from the Security Deposit.
Use of the Property and Shared Responsibilities
The Subtenant will use the Property only for the Permitted Use and for no other purpose.
The Subtenant will comply with all laws, regulations, permits, and licenses that apply to its business and to its use of the Property. It will also comply with the building rules issued by the Landlord, as they change from time to time. The Subtenant will get and keep in force, at its own cost, every license and permit its business needs.
The Subtenant must not cause a nuisance, disturb other occupants, damage the building, or bring onto the Property any hazardous or dangerous materials, except ordinary office supplies used in line with law.
The Subtenant must not make any alterations, additions, or improvements to the Property, or install signs, without the prior written consent of the Sublessor and, where the Main Lease requires it, the Landlord. Any approved work will be done at the Subtenant's cost, by contractors approved in advance by the Sublessor, and in line with the Main Lease.
The Sublessor, the Landlord, and their agents may enter the Property at reasonable times after giving at least [number] hours' notice to inspect, carry out repairs, show the Property to prospective tenants or buyers, or check compliance with this Agreement. In an emergency, they may enter at any time without notice.
As long as the Subtenant pays all amounts due and complies with this Agreement, the Sublessor will pay the rent due under the Main Lease and will not willingly do anything that would cause the Main Lease to be terminated.
If the Sublessor occupies or uses any part of the premises outside the Property, or if any facilities such as reception, kitchen, meeting rooms, or parking are shared, the Parties will use them in a reasonable and cooperative way. Any shared facilities and their terms are listed here: [description of shared facilities and arrangements, or "none"]. The Sublessor may make reasonable rules for shared facilities.
The Subtenant is responsible for the acts and omissions of its employees, contractors, agents, customers, and visitors at the Property and in the building, as if they were its own.
Repairs, Maintenance, and Insurance
The Subtenant will keep the Property and all its fixtures, fittings, and equipment clean, safe, and in good repair, at its own cost. This includes routine maintenance and the repair of any damage caused by the Subtenant or its people. Ordinary wear and tear is excluded.
Repairs that the Landlord must carry out under the Main Lease, such as structural repairs or repairs to building systems, remain the Landlord's responsibility. The Sublessor's only duty in that respect is described in the Property and the Main Lease section.
The Subtenant must tell the Sublessor in writing promptly about any damage, defect, leak, or other condition at the Property that needs repair or could cause harm.
If the Subtenant does not carry out a repair it is responsible for within [number] days after written notice, or immediately in an emergency, the Sublessor may do the repair itself. The Subtenant will then repay the cost plus an administrative fee of [percentage]%, within [number] days of receiving the invoice.
For the whole Sublease Term, the Subtenant will keep the following insurance in force with reputable insurers: commercial general liability insurance of at least [amount] [currency] per occurrence; property insurance covering its own fixtures, equipment, inventory, and improvements for their full replacement value; business interruption insurance; workers' compensation insurance as the law requires; and any other insurance that the Main Lease requires the tenant to carry.
The Sublessor and the Landlord must be named as additional insureds on the Subtenant's liability insurance. The Subtenant will give the Sublessor certificates of insurance before the Start Date and whenever a policy is renewed. Each policy must require the insurer to give the Sublessor at least [number] days' notice before cancellation.
The Subtenant waives, and will make sure its insurers waive, any right to recover from the Sublessor or the Landlord for loss or damage that is covered, or that should have been covered, by the insurance the Subtenant must carry.
The Subtenant will indemnify and protect the Sublessor against all claims, losses, damages, fines, costs, and reasonable attorneys' fees arising from the Subtenant's use or occupation of the Property, its breach of this Agreement or the Main Lease, or the acts or omissions of the Subtenant or its people. This includes any claims the Landlord makes against the Sublessor. This obligation continues after this Agreement ends.
The Sublessor is not liable for any injury, loss, or damage to the Subtenant, its people, or its property at the Property, unless it was directly caused by the Sublessor's gross negligence or willful misconduct.
Defaults and Ending the Sublease
The Subtenant is in default if any of the following happens: it fails to pay any amount within [number] days after the due date; it fails to comply with any other obligation and does not fix the failure within [number] days after written notice; it does anything, or fails to do anything, that causes the Sublessor to be in default under the Main Lease; it abandons the Property; or it becomes insolvent, makes an arrangement with its creditors, or becomes subject to bankruptcy, receivership, or liquidation proceedings.
If the Subtenant is in default, the Sublessor may end this Agreement by written notice with immediate effect, or on a later date it chooses. The Sublessor may also take back possession of the Property in any way the law allows.
If this Agreement ends because of the Subtenant's default, the Subtenant must pay all amounts due up to the termination date. It must also pay damages equal to the Rent and Additional Charges that would have been payable for the rest of the Sublease Term, less any net rent the Sublessor actually receives from re-letting the Property during that period. In addition, the Subtenant must pay all reasonable costs of recovering possession, re-letting, and enforcing this Agreement, including attorneys' fees.
Whether or not it ends this Agreement, the Sublessor may cure any default by the Subtenant at the Subtenant's cost. The Subtenant will repay those costs plus the administrative fee set out in the Repairs, Maintenance, and Insurance section, within [number] days of receiving an invoice.
If the Subtenant believes the Sublessor has breached this Agreement, it must give the Sublessor written notice describing the breach. The Sublessor will then have [number] days to fix it, or longer if the breach cannot reasonably be fixed in that time and the Sublessor is working to fix it. The Subtenant may not withhold Rent or end this Agreement because of a Sublessor breach.
The Sublessor's total liability to the Subtenant under or in connection with this Agreement is limited to [amount] [currency] or the total Rent paid by the Subtenant in the [number] months before the claim, whichever is less. Neither Party is liable for lost profits, loss of business, or indirect or consequential losses. This limit does not apply to the Subtenant's payment obligations or its indemnity.
The Sublessor's rights and remedies under this Agreement are in addition to any other rights and remedies available to it under law. If the Sublessor does not enforce a right right away, it does not lose that right.
Moving Out and Returning the Property
When this Agreement ends for any reason, the Subtenant will leave the Property and return it to the Sublessor in the same condition it was in on the Start Date, except for ordinary wear and tear and damage the Landlord must repair under the Main Lease. The Property must be clean, broom-swept, and free of the Subtenant's belongings.
The Subtenant will return all keys, access cards, and security codes, and will remove its signs, furniture, equipment, cabling, and other belongings. It will repair any damage caused by that removal.
If the Sublessor or the Landlord requires it, the Subtenant will remove any alterations, additions, or improvements it made and restore the Property to its original condition at its own cost. Any alterations the Sublessor allows to remain become the property of the Sublessor, or of the Landlord where the Main Lease requires it, and no compensation will be paid.
The Parties will inspect the Property together on or about the last day of the Sublease Term and will record any damage or missing items. If the Subtenant does not attend, the Sublessor's inspection will be binding.
Any belongings the Subtenant leaves at the Property after this Agreement ends will be treated as abandoned. The Sublessor may keep, sell, or dispose of them at the Subtenant's cost and without any liability, to the extent the law allows.
If the Subtenant stays in the Property after this Agreement ends without the Sublessor's written consent, it will pay [percentage]% of the most recent monthly Rent for each month or part of a month it stays, plus all Additional Charges. The Subtenant will also indemnify the Sublessor for all losses this causes, including any holdover rent, penalties, or damages the Landlord claims from the Sublessor and any loss of a new subtenant or tenant. Staying on does not create a renewal or a month-to-month tenancy.
The obligations in this section continue after this Agreement ends.
Governing Law and Dispute Resolution
This Agreement is governed by the laws of [State/Jurisdiction], without regard to its conflict of laws rules.
If a dispute arises under or in connection with this Agreement, the Parties will first try to resolve it in good faith through discussions between senior representatives. Either Party may start those discussions with a written notice describing the dispute. If the dispute is not resolved within [number] days after that notice, either Party may take further action under this section.
Any dispute not resolved by discussion will be decided exclusively by the courts located in [County/City, State/Jurisdiction], and each Party submits to the jurisdiction of those courts. However, the Sublessor may seek eviction, possession, or urgent relief in any court that has jurisdiction over the Property.
To the extent the law allows, each Party waives its right to a jury trial in any dispute arising from this Agreement.
In any legal action under this Agreement, the winning Party may recover its reasonable attorneys' fees and costs from the other Party.
All notices under this Agreement must be in writing and delivered by hand, by recognized courier, or by email with a confirmation copy sent by courier, to the addresses below or to any other address a Party gives by notice. A notice delivered by hand or courier takes effect on delivery. A notice sent by email takes effect on the next business day after it is sent. Notices to the Sublessor: [Address, Email, Attention]. Notices to the Subtenant: [Address, Email, Attention].
This Agreement, read together with the Main Lease and the Landlord's Consent to the extent they apply, is the entire agreement between the Parties about the Property. It replaces all earlier discussions and agreements on that subject. Any change to this Agreement must be in writing and signed by both Parties.
If any part of this Agreement is found invalid or unenforceable, the rest of it stays in effect, and the invalid part will be applied to the fullest extent the law allows.
This Agreement may be signed in counterparts and by electronic signature. Each counterpart is an original, and together they form one agreement.
The Parties have signed this Sublease Agreement on the dates shown below, to take effect on the Effective Date.
SUBLESSOR
[Full Legal Name of Sublessor]
Signature: ______________________________
Name: [Name of Authorized Signatory]
Title: [Title]
Date: [Date]
Address: [Address]
Email: [Email]
SUBTENANT
[Full Legal Name of Subtenant]
Signature: ______________________________
Name: [Name of Authorized Signatory]
Title: [Title]
Date: [Date]
Address: [Address]
Email: [Email]
GUARANTOR (if applicable)
[Full Legal Name of Guarantor]
Signature: ______________________________
Name: [Name]
Date: [Date]
Address: [Address]