Circumstances can change after you have entered into a lease agreement. Changes in work location, family size, and health can quickly change how attractive a residence or place of business can be. In situations like these, a sublease or assignment can be useful. A sublease and assignment are similar, yet there are important differences to consider.
Sublease:
- Rents the property to a subtenant for only a portion of the remaining lease term.
- Attractive if you want to retake possession of the property after a period of time. For example, you are given a lengthy business assignment overseas.
- The subtenant pays you.
- You continue to pay the landlord and are liable as to the rent amount.
- You remain liable to the landlord as to the condition of the property.
Assignment:
- Assigns the entirety of your lease term to another tenant (assignee).
- Attractive if you do not wish to retake the property. For example, a permanent change in work location.
- The assignee pays the landlord directly.
- The landlord can seek the rent amount from you if your assignee fails to pay.
- You remain liable to the landlord as to the condition of the property.
Most leases require consent from the landlord before subleasing or assigning your apartment or place of business. However, where the lease requires consent, the landlord cannot unreasonably refuse the sublease or assignment. Some leases expressly state a tenant cannot sublease or assign the property.
James G. Dibbini and Associates P.C. has over 20 years of experiencing drafting leases, subleases, and assignments. If you need help with a sublease or assignment, or feel that your landlord in unreasonably withholding consent, give us a call at (914) 965-1011 or email us at jdibbini@dibbinilaw.com to learn more.
