A sublease agreement is a contract that allows a tenant to sublease a space that it is currently renting. The sublease agreement is typically signed between the original Tenant and a new tenant. Before subletting your property, you will need to protect your property and make the new person responsible for any damages. Generally, the sublease agreement follows the original lease agreement’s terms and conditions between the Landlord and the Tenant, except that the Landlord is not involved in the process. Before a tenant begins the subletting process, the underlying lease agreement must be reviewed to ensure that subletting is permitted, and authorization must be sought from the Landlord.
For complete legal protection, download our sublease agreement template and get the following legal protections:
➤ Protection in case of late payment of rent by your subtenant with a penalty clause
➤ Payment of a security deposit to protect you against any deterioration
➤ Payment of the property's charges by the sub-tenant
➤ Compliance with the terms and conditions of the original rental agreement between the Tenant and the Landlord
Also, our sublease agreement contains the details of the lease agreement between the Sublessor and the Subtenant relating to:
➤ The duration of the sublease
➤ The rental of the premises
➤ The amount of the security deposit that will be required
➤ The work and alterations that may be done in the apartment
➤ The application of the terms of the main contract between the owner and the tenant
Make sure you have a contract with clear and precise clauses in order to avoid any discrepancies and confusion that may arise in the future.
Why use a sublease agreement?
It is essential to have a written sublease agreement to define the terms of the sublease. A formal agreement clarifies the obligations of all parties during the term of the sublease. It avoids future misunderstandings about payment terms, maintenance obligations and liability for damages.
What to do before subletting?
Before subletting your property to another party or subtenant, there are several formalities you need to complete to avoid any risks in your sublet. Themis Partner has prepared the following to help you understand some essential things before you sublet.
Check if you are allowed to do so
Before opting for a sublease, make sure you are authorized to sublet the unit. This authorization is granted by the landlord. In fact, a contractual clause must be inserted in your contract. Often, some landlords do not allow subletting in Thailand, especially for condominiums. In conclusion, if your lease contract does not include this authorization clause, we invite you to download our consent to sublease letter to be signed by the owner.
Finding a subtenant
Once you have verified that you are authorized to sublet, the next step is to find a subtenant for a specific period of time. You need to screen this subtenant and make sure that this person is respectful, reliable, and will take care of the sublet. To find a good subletter, you should also ask your landlord what type of subletter he or she wants. To make this selection easier, you can download our rental application form.
How to sublet a property in Thailand?
Step 1 - Find and read the terms and conditions of the original lease
Before proceeding with the search for a subtenant, check the terms and conditions of the original lease to find out the tenant’s rights regarding subletting the property in question. In Thailand, most leases do not allow the tenant to sublet the property. Therefore, the tenant must request and obtain the written consent of the landlord to rent the property to another person. Once the landlord’s consent is obtained, the tenant can begin marketing the rental property.
Step 2 - Determine the monthly rent
To determine the price of the sublease, the tenant can consider what others are paying in the area. After visiting similar properties, consider getting an idea of what to charge.
Step 3 - List the property
We recommend that you include a list of the property, including photos of the furniture, with the sublease agreement so that you have a complete inventory. This inventory will allow you to claim compensation from your subtenant in the event of damage to the furniture after the subtenant has left.
Step 4 - Show the property
Every tenant has the right to visit the property, in order to verify the suitability of the property to a potential sub-tenant. In addition, the condition of the house or apartment to be sublet must remain unchanged from its condition at the time of signing the sublease agreement. The pre-signing visit therefore allows the subtenant to avoid possible problems after the signing of the sublease contract.
You can download our Rental Inspection Report to ensure that you have written down the complete list and condition of the furniture and premises at the time of move-in. After pre-approving the person(s) on the phone, it’s now time to set up a time to show the property to see if it meets their needs.
Step 5 - Screening the Subtenant
Before accepting a lease, the tenant should check the subtenant’s credentials through a rental application and see if they qualify. In order to best select the applicant, it is important to obtain the following information from the new tenant:
➤ Credit and background check
➤ Income and employment verification
➤ Landlord reference: Contact their last landlord to find out their character and whether they have paid their rent on time
Step 6 - Sign the Sublease Agreement
If the subtenant qualifies, a sublease agreement must be signed. First, inform the landlord, the selected subtenant and sign the sublease agreement after their consent. Once the sublease agreement is signed, the subtenant will now be responsible for the terms and conditions of the lease, which means that any late rent, property damage or eviction will be the responsibility of the subtenant. However, the original tenant remains liable to the landlord. Therefore, it is important to receive a security deposit at the time of signing that is at least equivalent to one or two months’ rent.
On the end date of the sublease, make sure that the end date is no later than the original lease. Otherwise, the sublease may be considered non-binding between the parties.
What are the responsibilities of the original tenant?
The original tenant is still responsible for the landlord’s rent, as they are still contractually bound to the landlord. The subtenant is generally not accountable to the landlord, but only to the original tenant. For example, if the subtenant fails to pay the rent on time, the original tenant must still pay the rent to the landlord and the original tenant must ensure that the subtenant complies with the terms of the sublease. Also, the original tenant is responsible for ensuring that the property is in good condition, even if he or she is not currently living there.
What to do if the subtenant does not pay the rent?
The tenant has signed a sublease agreement with the subtenant and can ask for the money back before going to court. This notice from the landlord must include all the details of the subtenant’s default. If there is no favorable response, sue the subtenant in small claims court if they refuse to pay.
Suppose you need legal assistance with your sublease. In this case, Themis Partner can provide you with a full service with a Thai real estate lawyer for an affordable fee. Contact us if you need our help.
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