Sublease vs. Lease
What is the difference between a sublease and a lease?
This is a great question, and one that we get a lot. There are a lot of differences from both a legal and practical perspective. We aren’t going to dive in too deep, but rather offer a basic understanding of the key differences in residential leasing.
In a traditional residential lease the Landlord owns the property and leases it to a Renter (also known as a Tenant). The lease agreement allows the Renter to occupy the property throughout the term of the lease for an agreed upon payment. Most residential rental leases range from 12 to 24 months.
In contrast, during a sublease, the Landlord leases the property to a Renter and the Renter then leases the property to a New Renter. Instead of the Landlord leasing the property, the Renter leases it. In order to sublease your unit though, you’ll need landlord’s permission.
Expert Tip: Ask your landlord if you may sublease your property. If he says no, check your lease agreement, which may give you permission. In addition, a lot of landlords will allow you to initiate a “lease takeover,” where a new tenant would take over the remaining time on your lease. The reason why a lot of landlords allow lease takeovers is because they are able to charge the New Renter their standard application fee, and do not need to spend time or money turning over the apartment like they would for a New Renter. Lastly, often times New Renters will re-sign the lease for a 12 to 24 month lease term at the end of the lease takeover.
Why would I sublease my apartment?
You may want to sublease your unit for a variety of reasons. Most often it is because breaking a lease agreement is expensive– whether that means there’s a penalty associated with breaking the lease or you’ll still be responsible for future monthly payments. For example, individuals will often sublease if they need to leave town for work, and still have a few months remaining on the lease. Subleasing helps with the expense of the unpaid rent that is due and some of the moving expenses. In addition, most Landlords are okay with sublease because the landlord can charge a new application fee and doesn’t need to spend money turning over the apartment for a new renter.
Where is the best place to advertise my sublease?
The best place to sublet your apartment is on The Bindel. The Bindel allows individuals to list their sublet for free. In addition, The Bindel provides a rent guarantee so you’ll never miss a monthly payment, and you only need to list once and your property will automatically appear on The Bindel’s listing network of 70+ websites including apartments.com, forrent.com, realtor.com, zillow.com, and the list goes on! Finding qualified renters has never been easier.