Commercial Sublease Agreement

The damage deposit is money that the Subtenant pays to the Sublandlord at the start of the sublease term, which the Sublandlord will use to cover the costs of any repairs caused by the Subtenant that need to be done to the property at the end of the sublease term, after the Subtenant has vacated the premises.

Damage deposits are usually equivalent to the value of one month's rent, but can be any amount that the Sublandlord decides upon in a commercial setting. Some sublandlord require the same amount of deposit as required in the master lease. More might be required if there is a greater risk.

It is strongly advised that the Property should be insured. However, the Subtenant does not need to have their own insurance if the Sublandlord has obtained sufficient insurance to cover the Subtenant.