Sublet vs Sublease: What Tenants Need to Know

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In real estate, you may hear the terms 'sublet' and 'sublease' thrown around interchangeably. But is there actually a difference between the two? Are they legally different concepts, and what does that mean for tenants?

Sublet vs Sublease: Definitions and Differences

Legally, there is no “sublet law” and “sublease law.” In US law, they are both the same concept. When it comes to real estate, "sublease" is used as a formal noun for the contract, while "sublet" is often used as the verb. The most important thing to note is that in both cases, the original tenant rents out the property to a new person, but the original tenant is 100% legally and financially responsible to the landlord for rent and damages.

The real difference that people need to know is between a sublease and a lease assignment:

Sublease (or Sublet): This is where the original tenant becomes a "middleman" landlord. You will have to collect rent from the subtenant and pay the landlord. If the subtenant stops paying or causes damage to the property, the landlord will hold you, the original tenant, liable.
Lease Assignment: The original tenant transfers their entire lease to a new renter and moves out permanently. With the landlord's approval, the original tenant is released from the contract, making the new renter directly liable to the landlord.

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The Pros and Cons of Subletting or Subleasing

If you're looking to sublet an apartment, it's essential that you understand the pros and cons of subletting and subleasing.

Pros

You Avoid Costly Lease-Breaking Fees - If you have to move for a temporary job, a semester abroad, or a family emergency comes up, breaking a US lease early can cost you thousands of dollars in penalties (often two months' rent). If you choose to sublease, you can keep your lease active without paying double the rent or paying a massive termination fee.
You Keep a Good Credit Score and Rental History - If you walk away from an apartment because you can't afford it, your landlord can still collect the remaining rent, send your debt to a collections agency, or evict you. This will tank your credit score and make it incredibly difficult to pass a background check for a future apartment. Subleasing protects your financial track record.
You Keep Your Apartment Long-Term - If you love your apartment or you want to return to it after a few months of traveling, a sublease secures the space for you. Your subtenant pays the rent while you are gone, and you can move right back in when the sublease ends.

Cons

You're Responsible for Rent Payment and Damages - You're essentially becoming a landlord who answers to another landlord. If your subtenant decides to stop paying rent or damages the property in a way that's not general wear and tear, the landlord will find you responsible, not them. This means you'll end up paying their missed rent or have money deducted from your security deposit.
In Most Cases, You Need Landlord Approval - Most standard US residential leases contain a clause stating you cannot sublet without your landlord's prior written consent. If you sublet secretly (also known as an "unauthorized sublet"), your landlord can immediately evict both you and your subtenant. This will make it harder for you to get an apartment in the future.

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What to Include in Your Sublease Agreement: A Tenant Checklist

As the original tenant, you remain 100% liable to your landlord during a sublease. This means you need a written Sublease Agreement signed by both you (the sublessor) and your new subtenant (the sublessee).

In order to protect yourself from unpaid rent and property damage, make sure your agreement explicitly includes the following information:

The names of the primary parties - you, as the tenant and the name of the subtenant
Proof of the landlord's written consent
Start and end dates of the agreement
The property address
Rent details and payment deadlines
Terms of the security deposit
A clause stating that the subtenant has read and understood the master lease
Responsibility of utilities. If you're paying for utilities, include how much the subtenant should reimburse you by
Information on maintenance and damage reporting. It's good to include a clause that the subtenant will notify you immediately if a maintenance problem arises
Eviction provisions, such as what happens if the subtenant stops paying rent

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How to Find a Suitable Subtenant

Once you have decided to sublet the apartment you're renting, you can look at how to find a suitable tenant or subtenant. There are a number of ways to do this, but one of the most effective is placing an ad on reputable platforms such as SpareRoom. Here, you can advertise your space and increase your chances of finding a suitable subtenant in popular areas such as New York City, Chicago, Austin, and more.

Before committing to any leases, be sure to pre-screen your applicants. Ask for basic information up front, such as their employment status, reason for moving, and their desired lease length. This will save time by filtering out any unsuitable applicants early on in the process.

Additionally, it's recommended to conduct a thorough background and credit check, as some applicants may lie in order to get you to consider them. You have every right to ask for proof of income and a recommendation from previous landlords.

Once you have found a potential candidate, draft a clear agreement for both you and the tenant. Make sure to state exactly what you expect from them, including rent and responsibilities.

It's also a good idea to collect a security deposit, as this will protect you from any damages or unpaid rent.

How to Evict a Subtenant

What if you want your subtenant gone, and they won't leave? Perhaps they've missed rent payments or they've damaged the property - things that you, as the primary tenant, are ultimately responsible for. As you're not the property owner, this can be tricky. Here are some things you need to know:

You're Potentially Facing a Double Eviction - If your subtenant stops paying you rent, this means you'll end up covering those costs. If you stop paying the landlord because the subtenant has stopped paying you, the landlord can file a standard eviction lawsuit against you.
You Can't Change the Locks - This is what's known as a “self help eviction” and is completely illegal in all 50 US states. Your subtenant could sue you for unlawful eviction.

What is the Legal Path?

If you wish to legally remove a subtenant, you need to follow these legal protocols:

You must serve the subtenant with an official state-approved notice to pay or quit (usually 3 to 14 days, depending on the state).
Because you're a tenant and do not own the property, you'll almost certainly need your landlord's legal team to file the formal eviction paperwork in housing court.
A judge must sign an eviction order. Only a local sheriff or law enforcement officer can physically remove the subtenant from the property. You cannot do it yourself.

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Frequently Asked Questions

What's the Difference Between Subletting and Subleasing?

There's no legal difference between these two terms. They're synonyms for the exact same arrangement. "Sublease" is typically used as a noun (the contract), while "sublet" is used as a verb (the action).

In both cases, you (the original tenant) are renting your space to someone else for a set period, but you remain 100% legally and financially responsible to your landlord. If your subtenant doesn't pay or causes damage, you are still liable to your landlord.

However, if you're looking for an arrangement where you're completely "off the hook" and the landlord signs a new contract directly with the new person, you're actually looking for a Lease Assignment or Lease Transfer, not a sublet.

Can Landlords/Homeowners Increase the Rent During a Sublease or Sublet Agreement?

No, they cannot. If a tenant signs a 12-month lease at $2,000 a month, the landlord is legally locked into that price for the entire 12 months. The landlord cannot change the rent price if a tenant wishes to sublet.

That said, the landlord might choose to charge a one-time administrative fee to process your subtenant's background check and application.

Who Is Liable for Rent and Damages?

In a sublet agreement, the original tenant is 100% liable for rent and any damages, even if the damage is caused by the subtenant.

Can Landlords/Homeowners Refuse Subletting or Subleasing?

In many US states and major cities (including New York, California, Illinois, and Texas), case law or state statutes dictate that a landlord cannot unreasonably withhold consent. Because of this, they must have a reason to refuse a subtenant, such as the applicant failing a background check or having a history of evictions.

Conclusion

'Sublet' and 'sublease' are used interchangeably, as legally, they mean the same thing. This is where the original tenant rents out the property to a new person, but the original tenant is 100% legally and financially responsible to the landlord for rent and damages.

A Lease Assignment, however, is basically when the landlord signs an entirely new lease with a replacement tenant, releasing the original tenant from any further obligations.

Disclaimer - This information is for general informational purposes only and should not be treated as legal advice. We recommend you consult an experienced Landlord Tenant attorney if you require legal advice.