Subleasing is a housing arrangement between a current tenant (sublessor) and a new occupant — the subtenant or sublessee. The sublessor rents part or all of their home to the subtenant for a set period through subleasing.
The sublessor can collect rent payments on a space or property they aren’t using by subleasing to another tenant. At the same time, the subtenant can secure a living arrangement that might otherwise be impossible.
Keep reading to learn more about how subleasing can solve your housing needs.
How to Sublease
Read our guide on how to sublease an apartment in four easy steps.
What Is Subleasing?
Subleasing means renting out your currently leased house or apartment to someone else.
Common among college students studying abroad, this approach helps cover rent for unused space. It offers a convenient solution for temporary absences, eliminating the need to terminate and later reinstate the original lease.
Subleasing vs. Subletting
Subleasing can be confusing, and many people mistake it for subletting. While similar, subletting and subleasing typically differ in how these arrangements connect landlord, tenant, and subtenant.
Read below to understand the differences and when you might want to use these real estate contracts.
How Does Subleasing Work?
In a sublease, the original tenant remains bound by the terms of the original lease agreement.
For example, your apartment lease may state, “Renters are only permitted to arrange a sublease with permission from the landlord.”
In that case, you must get your landlord’s permission to rent a room or your entire apartment to another tenant while you keep your name on the rental contract.
With a sublease, another tenant may live in your space, but your lease agreement still binds you to all contract terms. This means you are responsible for paying rent on time and keeping up the apartment according to the lease’s requirements.
How Does Subletting Work?
A sublet refers to a property a tenant arranges for lease to another tenant. The key difference is that the sublessee often forms a new, temporary lease agreement with the landlord.
For example, if a tenant planning to go abroad says, “I decided to sublet my apartment while traveling.”
The tenant could find a new renter to live in the apartment for a determined period. The new tenant could then sign a lease agreement with the landlord to dwell in the unit in place of the original tenant.
Are You Allowed to Sublease?
Before you sublease, the first thing is to find out if you can sublease.
Here are the main areas to check:
Landlord Permission
Your rental agreement may require your landlord’s consent before you can sublease or prohibit subleasing altogether.
In either case, subleasing without complying with the lease terms may give your landlord the right to terminate your lease.
State and Local Laws
State and local laws govern rental practices. So, always check the provisions of your state and local landlord-tenant laws.
For example, in New York City, you can rent out your apartment even if the landlord refuses to consent in case their refusal to give permission is unreasonable.
Below is a comprehensive table on state laws regarding subleasing for your convenience:
Subleasing Laws by State
| State | Right to Sublease by Default? | Requires Explicit Written Consent? | Can Deny Tenant From Subleasing? | Subleasing Laws |
|---|---|---|---|---|
| Alabama | No, unless specified in the original lease | Generally yes, unless stated otherwise in the original lease | Not specified | None |
| Alaska | No | Yes. Tenant must submit written sublease offer to landlord, who has 14 days to respond or consent is assumed. | Yes with specific and reasonable grounds (listed in § 34.03.060(d)). | Alaska Statutes § 34.03.060 |
| Arizona | No, unless specified in the original lease | Generally yes, unless stated otherwise in the original lease | Yes, unless already explicitly agreed in the original lease (Ariz. Rev. Stat. Ann. § 33-1454.B) | None |
Should You Sublease?
Subleasing your apartment has advantages and disadvantages.
Read on for the pros and cons of subleasing to help you decide if you should suiblease your rental or try to find another way to fulfill the terms in your lease agreement.
Pros of Subleasing
- Finances. You can sublease unused space in your apartment to split the costs and keep a handle on your finances, especially if money is tight, or get help paying for a space you’re not using.
- Flexibility. Subleasing your apartment allows you to move to a different city for a while or leave your rental for another reason, such as moving in with family to help aging parents.
- Contractual obligations. Subleasing is a good solution for many challenges that may otherwise cause you to break your lease, such as when you will be away for a while. A sublease agreement can help you cover your rent, so you don’t have to break your lease.
Cons of Subleasing
- Looking for a renter. Finding a qualified subtenant can be challenging (can the new tenant afford the rent? do they have a clean rental background?), so you may spend a lot of time, effort, and resources trying to find the right person.
- Your reputation is at stake. Subleasing to an irresponsible subtenant who may damage the rental property or not pay rent is problematic, especially if you want to move back into the rental at some point.
Tips for Subleasing
Subleasing offers many benefits, like the freedom to travel without losing money or breaking a lease.
However, subleasing can also be a risky arrangement.
Use these tips to make your subleasing experience as stress-free as possible.
- Make sure you’re ready: If you’re the sublessor, ensure you are comfortable subleasing. Subleasingisn’t a passive arrangement; you must be prepared to address any potential problematic behavior with your subtenant.
- Understand the eviction process: You must be careful and understand the eviction process for removing a subtenant for non-payment or inappropriate behavior because you are still responsible and liable under the original lease agreement.
As the subtenant, you must rent from a credible, trustworthy person.
For subleasing connections, try asking your:
- Colleagues;
- Friends;
- Church;
- School;
- Social media contacts.
You’ll avoid scams and have a more successful subleasing experience by subleasing from someone recommended by others.
