If you’re looking to move out of your apartment/rental home but still have time left on your lease, you might be considering subletting or assigning your lease. Both options allow you to temporarily (or permanently) transfer your rental agreement to someone else, but there are some key differences to consider.
The first step you should take is to discuss these options with your landlord/property manager. While most landlords will try to work with you, most also have very specific ways in which they do sublets or lease assignments. Also some landlords may only allow one option.
Another discussion you need to have is with any roomates, as they will need to sign off on the change, and will very likely want to be involved with the selection of the subletter or replacement tenant, as they will have to live with that person going forward.
What is a sublet?
A sublet is when you temporarily rent out your space in your apartment/rental home to someone else while you are still the primary tenant on the lease. You are responsible for paying rent to your landlord and for ensuring that the subtenant follows the terms of the lease. You would also be liable for any damages, unpaid rent, or other lease violations. You essentially allow somoene to use your space, but remain fully responsible until the lease ends. You will want to be clear with your subletter whether you plan to return to the unit at some point, or not, during the present lease term or if you are considering extending the lease for an additional term.
One of the benefits of subletting is that it allows you to offset the cost of rent while you are away. However, it’s important to note that you may need the permission of your landlord before you can sublet your apartment. Subletting is typically for temporary and short term situations (summer, semester abroad, winter session, etc) and usually does not come with fees from the landlord/property manager.
What is a lease assignment?
A lease assignment is when you transfer your interest in your lease to someone else on a more permanent basis. This means that your assign your interest in the lease agremeent and the new tenant becomes responsible for paying rent and following the terms of the lease. Essentially taking your place on the lease, and you are released from the lease from that point forward.
One of the benefits of a lease assignment is that it allows you to completely sever your ties with the apartment/rental home and the landlord. However, it’s important to note that the new tenant will need to apply, be screened and approved through our normal application process and sign appropriate paperwork before a lease assignment can take place. There are fees associated with a lease assignment and you will need the permission of your landlord/property manager before you can assign your lease.
Which option is right for you?
Whether you choose to sublet or assign your lease interest will depend on your individual circumstances, future plans and your landlord/property managers input. Here are a few things to consider:
Length of time: If you only need to be away for a short period of time and plan to return to the rental (example summer, semester abroad, winter session, etc) , subletting might be a better option. However, if you know you won’t be returning to the apartment, a lease assignment might be a better choice.
Number of People Changing: If only one person is changing out, either option could be considered. However if 50% or more of the original Tenants/Lessees are changing out (rather than subletting), we require a new lease (and cosign forms if applicable), which requires a broker fee, application screening, and new move in payments, etc.
We hope this helps clarify the differences between sublets and lease assignments. It is important to have a discussion with your landlord/property manager as each situation is different. If you have any additional questions or need further information, please contact our office.
