FACT SHEETS
- Subleases & Assignments
Sometimes, a tenant with a lease
may need to move before the lease ends, or may need
help paying the rent. In
these situations, you may want to sublease the
rental
unit or assign the lease to another tenant, if the
terms of the lease allow this.
Subleases
A sublease is
a separate rental agreement between the original
tenant and a new tenant who moves
in to share the rent. With a sublease, the agreement
between the original tenant and the landlord remains
in force and the original tenant is still responsible
for paying the rent to the landlord.
Many rental agreements and leases contain a provision
that prevents tenants from assigning or subleasing
rental units. In that case, you'll need your landlord's
permission before you sublease or assign the rental
unit. Even if your rental agreement doesn't contain
a provision preventing you from subleasing or assigning,
it's wise to discuss your plans with your landlord
in advance.
You might use a sublease in two situations. In the
first situation, you may have a larger apartment
or house than you need, and may want help in paying
the rent. Therefore, you rent a room to someone.
You need this type of sublease agreement, which should
be in writing, in which the new tenant (or subtenant)
agrees to make payments to you, not the landlord.
The new tenant (subtenant) has no responsibility
to the landlord, only to you. The subtenant has no
greater rights than the original tenant. For example,
if you have a month-to-month rental agreement, so
does the subtenant.
In the second situation, you may want to leave the
rental for a certain period of time and return to
it later. For example, you may be a college student
who leaves the campus area for the summer and returns
in the fall. You may try to sublease to a subtenant
who will agree to use the rental only for that specific
period of time.
In both situations, it's essential that you and
the subtenant have a clear understanding of the obligations
of each party. This understanding should be put in
writing. It's also important that the sublease be
consistent with the lease, so that your obligations
will be fully performed by the subtenant, if that
is what you and the subtenant have agreed on.
Assignments
An assignment might
be used if the tenant has a lease and needs to move
permanently before the lease ends.
Like a sublease, an assignment is a contract between
the original tenant and the new tenant (not the landlord).
However, assignments differ from subleases in one
important way.
Under an assignment, the new tenant is legally responsible
to the landlord (for example, for the payment of
rent, for damages to the rental unit, and so on).
Nevertheless, an assignment doesn't relieve the original
tenant of his or her legal obligations to the landlord.
IF the new tenant doesn't pay rent, or damages the
rental unit, you remain responsible to the landlord.
For the original tenant to avoid this responsibility,
the landlord would need to agree that the new tenant
will be solely responsible to the landlord under
the assignment. This agreement is called a novation and should be in writing.
Remember: If the landlord agrees to the sublease
or assignment, you are still responsible for the
rental unit (unless there is a written agreement
otherwise). For this reason, think carefully about
who you let live in the rental unit.
Disclaimer of Liability:
The information contained
in this material is for the sole purpose of
providing general information only, and must
not be construed as legal advice, or take the
place of competent legal counsel. Do not rely
on these materials without consulting an attorney
concerning your situation. The dissemination
of this information does not create an attorney-client
relationship and does not seek to represent
you based upon your visit or review of this
information.
Every effort has been made to ensure the information
contained in the material is current. However, the
law does change and the general information contained
within may become dated. You should seek the advice
of legal counsel for specific situations and advice
to the "then existing" status of the law.