Overview
Definition
Sublet, also known as sublease, refers to the arrangement where a tenant rents their leased apartment, house, or commercial space to another person, who then becomes termed as a subtenant or sublessee. This arrangement typically requires the approval of the original landlord.
Key Points
- Consent Required: Most lease agreements require that the tenant obtains the landlord’s consent before subletting the property.
- Responsibilities: While subletting, the original tenant remains responsible to the landlord for rental payments and any damages caused by the subtenant.
- Legal Arrangements: The terms of the sublet agreement should be clearly outlined in a sublease contract.
Examples
1. Residential Sublet
Jane has a one-year lease on an apartment but plans to travel for three months. She arranges to sublet her apartment to Mark for those three months, with the landlord’s approval.
2. Commercial Sublet
A small business owner leasing an office may decide to downsize but is locked into a lease. The owner subleases a portion of the office space to another small business to share costs.
Frequently Asked Questions
What is the legal difference between subletting and assigning a lease?
- Subletting: The original tenant retains some rights and responsibilities for the remainder of the lease term and enters into a rental agreement with a subtenant for a part or the entirety of the lease term.
- Assigning: The original tenant transfers their entire interest and obligations under the lease to a new tenant.
Can a landlord refuse a sublet request?
- Yes, a landlord may refuse a sublet request based on the reasons stipulated in the lease agreement or local laws. Often this requires a valid reason such as a prospective subtenant’s poor credit history or rental background.
Who collects rent in a sublease?
- Normally, the subtenant pays rent to the original tenant, who in turn pays the original landlord. However, direct payment arrangements can also be arranged in some cases.
What happens if the subtenant fails to pay rent?
- The original tenant is still responsible to the landlord for the rent, even if the subtenant defaults. The original tenant can then pursue legal remedies against the subtenant based on their sublease agreement.
Leasing Agreement
A contract between the landlord and tenant outlining terms such as rent amount, lease duration, and property maintenance responsibilities.
Assignment of Lease
The transfer of all tenant rights and obligations to a new tenant under the same lease agreement.
Tenant
An individual or entity who occupies rental property under a lease agreement.
Subtenant
A person who leases property from a tenant rather than directly from a landlord, under a sublease agreement.
Online Resources
References
- “Residential Tenancy Act.” Government Legislation.
- Black, Henry Campbell. “Black’s Law Dictionary.”
Suggested Books for Further Reading
- “The Lease Manual: A Practical Guide to Negotiating Office, Retail, and Industrial Leases” by Samuel Ross Gordon-Pratt.
- “Landlord’s Legal Kit for Dummies” by Robert S. Griswold and Laurence Harmon.
- “The Everything Landlording Book: An All-in-One Guide to Property Management” by Judy Tremore.
Real Estate Basics: Sublet Fundamentals Quiz
### What is required in most lease agreements before a tenant can sublet their rental property?
- [x] Landlord's consent
- [ ] Subtenant's credit check
- [ ] Security deposit from subtenant
- [ ] Legal counsel's approval
> **Explanation:** Most lease agreements require tenants to obtain the landlord's consent before subletting the property. This serves to protect the landlord's interests and ensure the subtenant is a suitable occupant.
### Who is responsible for rent payments when a tenant sublets their apartment?
- [ ] Only the subtenant
- [x] The original tenant
- [ ] The landlord
- [ ] The original tenant and the subtenant equally
> **Explanation:** Even when subletting, the original tenant remains responsible for rental payments to the landlord. The subtenant typically pays the original tenant, who then pays the landlord.
### In a sublet arrangement, if the subtenant does damage to the property, who is liable?
- [ ] Only the subtenant
- [x] The original tenant
- [ ] Both the subtenant and the original tenant
- [ ] The landlord
> **Explanation:** The original tenant remains liable to the landlord for any damages caused by the subtenant during the sublet period.
### What type of agreement details the terms between the original tenant and the subtenant?
- [x] Sublease agreement
- [ ] Assignment agreement
- [ ] Tenancy statement
- [ ] Property management contract
> **Explanation:** The terms between the original tenant and the subtenant are detailed in a sublease agreement.
### What is the term for a tenant who becomes a landlord to the subtenant?
- [x] Sublandlord
- [ ] Super landlord
- [ ] Co-landlord
- [ ] Auxiliary landlord
> **Explanation:** In a subletting scenario, the original tenant, termed as the sublandlord, becomes a landlord to the subtenant.
### Can a landlord legally evict the original tenant if the subtenant breaks lease terms?
- [x] Yes
- [ ] No
- [ ] Only under extreme conditions
- [ ] Only if the original tenant does not leave voluntarily
> **Explanation:** Yes, if the subtenant breaks the lease terms, it can lead to the landlord legally evicting the original tenant as they are responsible for the subtenant's actions.
### Why is it crucial to have a written sublease agreement?
- [x] To clearly outline terms and responsibilities between tenant and subtenant
- [ ] To avoid paying taxes
- [ ] To fulfill lender requirements
- [ ] To have casual acknowledgment
> **Explanation:** Having a written sublease agreement is crucial to clearly outline terms, responsibilities, and obligations between the original tenant and the subtenant.
### In which situation can the original tenant transfer their entire lease obligations to another tenant?
- [ ] Subletting
- [x] Assignment
- [ ] Cleaving
- [ ] Participation
> **Explanation:** When an original tenant transfers all their obligations and interest in the lease to another tenant, it is called an assignment, not subletting.
### Which party benefits directly from a sublease agreement?
- [ ] Only the landlord
- [x] The original tenant
- [ ] The property manager
- [ ] Local government
> **Explanation:** The original tenant benefits directly from a sublease agreement as it helps them cover rent costs when they are unable to occupy the property.
### Which document should be reviewed to confirm if subletting is permitted?
- [x] The leasing agreement
- [ ] The property deed
- [ ] The tenant's rental application
- [ ] Local property tax statement
> **Explanation:** The leasing agreement should be reviewed to confirm if subletting is permitted as it outlines the specific terms and conditions of the rental arrangement.