Sublet Lease

A sublet lease is a legal contract used when a tenant sublets his or her property to a third party. Sublets, also called subleases, commonly occur when a renter must vacate his or her property before their lease has expired. Instead of breaking a lease early, which may result in financial penalties, a tenant may instead decide to sublet the property; in essence, the tenant rents out the property to a third party, though the original tenant still holds a lease on the property with the landlord. The third party, commonly referred to as the sublessee, pays rent to the tenant who has vacated the property, who in turn pays rent to the landlord. Laws vary by state, though generally a landlord's consent is required before a sublet lease can be signed. The original tenant is still responsible for the rent and any damages made to the property, and if the sublessee fails to pay rent the original tenant may be held liable.

Fast Facts

  • In 2008, commercial office sublease space in Austin, TX increased by approximately 10%.
  • According to 2005-2007 census results, 28.4% of renter occupied housing units were 1 bedroom units.
  • In mid 2009, the median price for a sublet in Chicago, IL was $1600.

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