Subleasing & Assignment

Division Of Student Affairs; Western Michigan University

SUBLETTING OR SUBLEASING IS:

• A tenant entering into a rental agreement with a sub-tenant or new tenant.

• A legal way to transfer the obligation of a long term lease.

• lease to a third person by the tenant of a part of the premises or of the full premises, but for a period less than the term of the primary lease between the landlord and tenant.

• can be a complicated procedure, particularly if you're not planning to remain in the area for the period of the sublease. (See Assignment)

AS A SUBLEASSOR:

• You transfer to another person some portion, but not all, of your lease.

• You become the landlord to the sub-tenant(s).

• You have not canceled your own rental agreement, so you are still a tenant and responsible for your rental unit.

• You are still responsible for missed rent payments and/or damages done by the sub-tenants.

• You need to protect yourself by:
  1. getting the sub-tenants to sign a written agreement that includes everything in your lease with the landlord, and

  2. requiring a security deposit from the sub-tenants.

• You must follow all rules that apply to landlord.

AS A SUBLEASSEE:

• You are entitled to all the rights of the tenant.

• You have no rights against the landlord, however, you are entitled to notice of and an opportunity to participate in any action brought against you and the original tenant.

• You must follow all rules that apply to tenants.

A BETTER ALTERNATIVE ASSIGNMENT:

• Is where the landlord is willing to enter into a direct agreement with the sub-tenant, allowing them to substitute for the original tenant, for the remaining period of the lease.

• Is actually the signing of a new lease.

• Gives the sub-tenant direct access to dealing with the actual landlord.

• Gives a tenant a chance to get into a shorter term agreement than might otherwise be possible with a long term lease.

• Enables the landlord to deal directly with the persons living in his rental unit.

• Is a much better and far less complicated arrangement than sub-letting for all parties involved.