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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.