Friday, May 29, 2015

Subletting and reletting most commonly confused terms

Subletting and re-letting are actually two different type of arrangements, but are most commonly used interchangeably. Sometimes, the leasing landlords or managers don’t even use them correctly.

What does re-letting a rental property mean?

When you are in need to vacate your apartment before your lease expires, due to a job transfer or purchase of a new house, your landlord gives you a chance to find another tenant who would assume your current lease, thus releasing you, as original tenant from it’s obligations. Once such a tenant is found, then new contractual relationship is established.

Subletting an apartment


Depending on the state you’re located in, your landlord is still obligated to make the “best effort” to find a new tenant as soon as possible, before you vacate. If this happens, it will be to your advantage and it will limit the amount of rent you’d be responsible for after ending your lease before the agreement date.

What does subletting a rental property mean?

Most apartment complexes or landlords do not allow you, as the current leaseholder to sublet your apartment to someone else for any period. However, some landlords do that especially if the apartment is located in the college area.

Generally, a tenant who’s on the lease rents a room to someone else,  and it’s usually referred to as subleasing (or subletting). The new subtenant may totally comply with all the terms and will in fact make all the promises to pay on behalf of the principal tenant on the lease. If subtenant tends to fall back on payments or refuse to pay for some reason, then you, as the principal tenant remain responsible for the lease and the landlord has a full right to sue you for it.

If subtenant also vandalizes the property, the principal tenant is responsible. This is unfortunately the down side to subleasing vs. re-letting the apartment.

Can my landlord help with my apartment lease break?

If you’re in a situation when you realize that you have to break your apartment lease due to your job transfer, purchase of home, or any other reason, most often than not, your landlord will NOT help you with the lease break.

95% of the time, landlords or apartment complexes are not obligated to help you with re-letting your apartment to another tenant.  They are also not obligated to be showing your apartment on your behalf, even if you ask them so.
apartment lease break


It’s also important for you as the current tenant to comply with landlord’s rules and regulations of the signed agreement.  Usually, it will state such lease break terms in the document that you had originally signed, when you just rented the apartment.

Accordingly, prior to vacating a property early and thereby defaulting under a lease, a residential tenant should attempt to find a suitable tenant to to take over the apartment lease, thereby mitigating his own potential damages.

Some landlords are hopeful that you will fail in finding a replacement tenant who’d take over your lease.  Why? Because most of the time, the lease break penalty for breaking your lease agreement is at least two months rent. If the landlord gets it from you, they are confident enough that they can quickly find someone who’d fill in your apartment spot and assume your monthly payments.