Of all the rental terms out there, subleasing might be the most confusing. You’ve probably either paid rent on a sublet room or have considered subletting your entire apartment or a room in your home. But what exactly is it? And what do you need to know before doing it? Mike Olson, marketing manager of Legal Templates, a company that supplies legal documents, told us the most important things you need to know about subleasing.
[tweetthis]5 things you need to know about #subleasing. #apartment [/tweetthis]
What Is Subletting or Subleasing?
Subleasing is when the person whose name is on the lease finds another person to pay the monthly rent. That person is the subtenant. This can happen if you’re not living in your apartment temporarily or if you need to leave your city for some reason and cannot break your lease. It can be a great way to ensure you don’t lose money, but it has its drawbacks.
What You Must Know about Subletting
The most important thing you need to know about subleasing is that if you’re subletting to someone, you’re ultimately responsible for paying the rent. If you’re subtenant can’t or won’t pay, you’ll be required to pay the rent in full since your name is on the lease and theirs (typically) won’t be. Make sure you screen your subtenants carefully.
Subleasing Laws Vary by State
One of the most confusing parts about subleasing is that the laws governing it vary by state. You’ll want to look up the laws for your state before you consider it.
“Different municipalities have varying laws regarding subletting — where most leave it to the [property manager] to decide, some jurisdictions, such as San Francisco or New York City, have guidelines where lease agreements cannot prohibit subleasing under certain circumstances,” says Olson.
Check With Your Property Manager
Before you sublet, you’ll want to check with your property manager to make sure it’s OK with him or her.
“This is referred to as a sublet permission, where the tenant will either be allowed to sublet the apartment to someone else (the subtenant) with the [property manager’s] approval beforehand or be denied the option to sublet,” says Olson. “A subtenant should open clear communication with the landlord to ensure that the tenant is following the proper rules and regulations as stated in the lease.”
That way, you also can discuss what the subtenant is responsible for or not. For instance, if you’re subleasing, you may not have to pay utility bills.
Your Rights as a Subtenant
For the most part, as a subtenant, you’ll have the same rights as the original renter. So when the lease is up, you’ll have to find a new place to live or see if the property manager will give you your own lease. Usually, you’ll have to abide by the same rules that the original renter would. But this varies depending on the arrangement the property manager has made with the original renter.
“A subtenant should know that the approval of the sublease comes from the landlord and what is spelled out in the master lease. Lease agreements should contain clauses specifically including the approval/disapproval of subleasing,” says Olson. “In summary, a tenant and subtenant should both be educated on local laws regarding subleasing, ensure that the landlord has given approval and ensure that the rights in the original lease agreement apply to the subtenant during a sublease.”
For more tips on how to handle leases, check out this ForRent.com post.