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Subleases

Subleases

A sublease is a tenant's agreement to allow a third party (sublessee) to take over the rent and occupancy of leased premises. In a sublease, the tenant remains obligated to the landlord under the original lease, and the sublessee becomes the tenant of the original tenant. The landlord may agree to accept rent payments directly from the sublessee, although he or she is not required to do so.

Landlord's Consent

If the original lease contains a provision that prohibits a sublease, the original tenant may not enter into a sublease agreement unless the landlord consents to waive the provision. If the lease does not prohibit a sublease, the original tenant does not have to obtain the landlord's consent before entering into a sublease agreement with a potential sublessee. The landlord has the right to accept or reject the sublessee. However, the landlord cannot reject the sublessee on the basis of discriminatory reasons. The landlord may withhold his consent to the sublease on the basis of objective criteria, which are usually related to the sublessee's financial ability to pay rent and his or her criminal background.

Lease Terms and Increased Rent

Because the sublessee takes possession under the original lease, those lease terms control the sublessee's entry into possession. Except in rent-controlled areas or states that have enacted rent stabilization laws, a lease may provide for an increased rent or security deposit before the landlord is required to approve the sublease. If there is no rent control or rent stabilization, the original tenant may charge the sublessee any amount of rent he chooses.

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