There are instances when you need to move out of your apartment even before your lease expires. Often, the option is to break your lease. But the process is not as easy as it sounds, and sometimes things will not go the way you wanted them to be. You do have another option: subletting.
Subletting is an excellent way of solving problems like having to move out of a rented apartment before the lease agreement is up. Subletting helps the tenants who need to vacate immediately, the landlord who may not agree with breaking the lease, and those desperately looking for an apartment.
If you choose to go this route, it is best to carefully study the ins and outs of subletting, especially that subletting is treated differently state-by-state.
What is subletting?
Subletting is the act of renting out a residential space that's already being rented out to a tenant. Subletting allows a tenant to avoid breaking the lease in case he needs to move out early or will go on an extended vacation.
However, finding the right tenant to sublet your space will not be easy. Also, you are putting your reputation on the line, so it is important to find a tenant who is responsible enough to take care of the property the way you would.
How does it work?
If you decide to sublet your space, make sure you follow the correct process for subletting a property. This will help keep you out of trouble with your landlord and the law in general.
1. Check the local laws
The right to sublet will usually be written on the lease documents that you signed. This, however, can vary depending on where you live. There some states, though, that do not have specific laws about subletting, including Alabama, Florida, Indiana, Mississippi, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, Utah, Washington, and West Virginia.
2. Pick a qualified subtenant
Even if the apartment is under subletting agreement, you are still liable for payments to the landlord. So make sure you pick a subtenant that won't get you in trouble with your landlord or the law. Ask for references, and do a background check.
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Also, filter your applicants by checking their financial capabilities. This will give you an idea if they can pay their monthly rentals.
3. Request for deposit
One way to make sure you filter out the irresponsible subtenants is by asking for a security deposit. This can range anywhere from 10 percent of the monthly rent to an actual advance payment worth one month. This is also called a good faith deposit.
4. Finalize the sublet agreement
Once you're sure with your subtenant, get the sublease agreement ready. This will legally bind both of you to avoid disagreements in the future. Your contract can include details like who should pay for the utilities.
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