Most lease agreement and most rental agreements specifically state no subletting allowed. A California sublease agreement is a written arrangement that involves a residential tenant leasing their rental property to a subtenant.California allows tenants to sublease, unless the tenant's lease agreement prohibits or limits subleasing. Thinking about starting a short-term rental business in California? Now is the time to take action! Subtenant, this understanding should be put in the form of a written sublease agreement that both you and the subtenant sign. Some Hosts require a rental agreement to secure a reservation but they must disclose this requirement and its terms prior to booking. A sublease agreement is a legal document that permits a tenant to rent out their property to another person, known as a subtenant. To start, you can explicitly address subleasing in the original lease agreement. Most lease agreement and most rental agreements specifically state no subletting allowed.