Reviewed by Vineeth | Updated on May 19, 2023



A sublease is a process of renting out a property to a third party by a tenant for a time period of the lease contract of the existing tenant. Lease contracts are contracts between a tenant and the owner of the property. As per the agreement, the exclusive possession and usage of the real estate facility will be to benefit the tenant for a period agreed and mentioned in the lease contract.

Lease Contract

A typical lease contract will state the time length of the contract between the owner and the tenant and the amount of money or the rent that the tenant has to pay the owner over the contract period. The legal rights that the tenant possess over the property over the contract period are called the tenancy. Subleasing happens when the tenant holding tenancy over the property will go onto transfer a part of their tenancy to a new tenant as a third party.

Breaking Down Subleasing

Subleasing may be established only if the initial lease contract permits it or does not mention anything about subleasing the property. Nevertheless, generally, the owner of the property shall be made known and taken approval from before going onto sharing the tenancy with another tenant. The control over the subleasing of the property may be written into the initial lease contract. Doing this will help the owner of the property to have control of who is going to use or occupy the property.

Tenants who are going to sublease their tenancy should know that subletting will not go onto release them from the initial obligations on the initial lease contract. The original tenant will still be accountable for paying rent and for any damages that will occur to the property over their period of the tenancy.

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