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Yes, you should definitely have some sort of a written agreement with your sublessee (and sublessees, you should have a written agreement with your lessor!) I once sublet an apartment from a woman who asked me to feed her cats while I was subletting; I agreed only on the condition that we explicitly stated in the contract that if anything happened to the cats, I wouldn't be held liable. I just had nightmares of coming home to dead cats and a giant lawsuit. (Fortunately, all went well.) If you are subletting an apartment where something is damaged --- for example, the DVD player won't open or close, or there's a broken corner of a frame --- it's not a bad idea to get that in writing too, so that you aren't on the hook for the damage that you didn't cause.

While a contract will help you if you sue in small claims court or something like that, its real value is in providing a structured way to make sure that you both understand the expectations.

I will say that subletting is inherently an exercise in trust, and you want to make sure that your contract doesn't impede the trust you feel with your sublessor. But nevertheless, it's good to have all this stuff written out.