Subletting is a housing arrangement between a current tenant (sublessor) and a new occupant — the subtenant or subletter. The sublessor rents part or all of their home to the subtenant for a set period through subletting.
The sublessor can collect rent payments on a space or property they aren’t using by subletting to another tenant. At the same time, the subtenant can secure a living arrangement that might otherwise be impossible.
Subletting offers a unique alternative if buying or renting a home in a traditional way doesn’t fit your needs or abilities.
Keep reading to learn more about how subletting can solve your housing needs.
What is Subletting?
Subletting means renting out your currently leased house or apartment to someone else.
For example, college students often sublet their rooms or apartments if they spend a semester studying abroad.
The payments received by their subtenants help cover the rent and upkeep of space that the original tenant is no longer using or can no longer afford.
Subletting can be a great temporary fix for a college student or renter looking to move away from their leased property for a while.
For example, subletting is easier than terminating the original lease for a semester and then needing to reinstate the lease when the student returns.
Subletting vs. Subleasing
Subletting can be confusing and many people mistake it for subleasing. While similar, subletting and subleasing typically differ in the way these arrangements connect landlord, tenant, and subtenant.
Read below to understand the definition of subletting and subleasing, and when you might want to use these real estate contracts.
A sublet refers to a property an original tenant arranges for lease to another tenant. It is also an agreement a new tenant (subtenant) has with a landlord due to the original tenant moving out of the rental for a set period of time. For example, a person abroad may say, “I decided to sublet my apartment while traveling.” This means the tenant found a new renter to live in the apartment for a determined period of time. The new tenant likely signed a lease agreement with the landlord to dwell in the unit in place of the original tenant.
How Does Subletting Work?
A sublease sometimes describes a subletting contract. Still, it most often refers to renting a room or entire space to another tenant while the original tenant retains responsibility for the original lease. 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 terms of the contract, for instance to paying rent on time and keeping up the apartment according to the lease’s requirements.How Does Subleasing Work?
How To Sublet: A Tenant’s Steps for Subletting
Here are some easy steps to take when subleasing your apartment:
Step 1 – Confirm That You Can Sublet
Most states’ landlord-tenant law requires you to get your landlord’s consent before you can sublet. So, check the applicable laws in your state.
Your lease may also have provisions on whether subletting is allowed and, if allowed, a guide on how you can sublet.
If you need your landlord’s permission to sublet, put the request in writing and get their consent.
Step 2 – Advertise for Tenants
You may find a subtenant through word of mouth by letting your friends and family know your intention to sublet your apartment.
You can also advertise on social media and other advertising sites.
Step 3 – Screen the Prospective Tenants
Interview your prospective tenant and run a background check on them, especially if they are strangers to you.
Ensure you get written authorization from the prospective tenant if you plan to conduct a background credit check. Confirm their employment status to ensure they can pay rent.
Check their bill payment history and confirm they pay their bills promptly.
Step 4 – Create the Sublet Agreement
Your sublet agreement should contain critical provisions to protect you and give you recourse if the subtenant starts acting up.
You and the subtenant should agree on the following terms:
- Monthly rent amount
- What the new tenant gets in the sublet (parking, furniture, and storage, for example)
- The duration of the sublet
- Penalty for late fees
- Responsibility for utility payment
- Other vital terms, such as smoking rules and pet restrictions
Are You Allowed To Sublet?
Before you sublet, the first thing is to find out if you are permitted to sublet.
Here are the main areas to check:
Landlord Permission
Your lease agreement may require your landlord’s consent before you can sublet or it may prohibit subletting altogether.
In either case, subletting 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 give consent if their refusal to give their permission is unreasonable.
Should You Sublet?
Subletting your apartment has advantages and disadvantages.
Read on for the pros and cons of subletting to help you decide if you should sublet your rental or try to find another way to fulfill the terms in your lease agreement.
Pros of Subletting an Apartment
- Finances. You can sublet 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. Subletting 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.
- Sticking to contractual obligations. Subletting is a good solution for many challenges that may otherwise cause you to break your lease, such as when you won’t be around for a while. A sublet agreement can help you cover your rent, so you don’t have to break your lease.
Cons of Subletting an Apartment
Looking for a renter. Finding a qualified subtenant can be challenging (can the new tenant afford the rent and does he or she 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. Subletting to an irresponsible subtenant who may damage the property, or not pay rent, is problematic, especially if you want to move back into the rental at some point.
Tips for Subletting
Subletting offers many benefits, like the freedom to travel without losing money or breaking a lease.
However, subletting can also be a risky arrangement.
Use these tips to make your subletting experience as stress-free as possible.
- Make sure you’re ready: If you’re the sublessor, ensure you are comfortable subletting. Subletting isn’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 subletting connections, try asking your:
- colleagues
- friends
- church
- school
- social media contacts
You’ll avoid scams and have a more successful subletting experience by subletting from someone recommended by others.
