If you are a condominium owner, subleasing your unit can be a great way to earn extra income from your investment property. However, before subleasing your unit, it is important to have a written agreement in place that outlines the terms and conditions of the sublease.
A condominium sublease agreement is a legally binding contract that sets out the terms and conditions of the sublease between the owner of the condo (the “landlord”) and the subtenant. This agreement is similar to a standard lease agreement, but with a few key differences.
Here are some important points to consider when drafting a condominium sublease agreement:
1. Permission from the Condo Board
Before subleasing your unit, it is important to obtain permission from the condo board. Some condos have strict rules prohibiting subleasing, while others may only allow it under specific circumstances. Make sure you follow the proper procedures and obtain the necessary approvals before proceeding with the sublease.
2. Rent and Security Deposit
The sublease agreement should clearly state the amount of rent the subtenant is required to pay each month, as well as the due date for payment. You should also include language regarding the security deposit, including the amount required and the conditions for its return.
3. Term of the Sublease
The agreement should state the length of the sublease and the date it will begin and end. You may want to include language allowing for early termination or renewal of the sublease.
4. Maintenance and Repairs
Your sublease agreement should clearly define who is responsible for routine maintenance and repairs in the unit. Typically, the subtenant is responsible for minor repairs and upkeep, while the landlord is responsible for major repairs and replacements.
5. Use of Common Areas
The sublease agreement should also outline how the subtenant may use any common areas in the building, such as the pool or fitness center. Be sure to review the condominium rules and regulations and include any specific requirements in the agreement.
6. Restrictions on Subleasing
The sublease agreement should include any restrictions on subleasing, such as the number of occupants allowed in the unit or any prohibitions against subletting to short-term renters.
By including these key elements in your condominium sublease agreement, you can help protect your investment property and ensure a successful and profitable sublease arrangement. As always, consult with a legal professional to ensure that your agreement is legally sound and enforceable.