If you find yourself in a situation where you need to move out before your lease expires, subletting could be your solution. Use this guide to help you understand the process of subletting, how it differs from subleasing, steps to take to find a subletter, and answers to common subletting questions you may have.
Table of contents
- What is subletting?
- What is a subletter?
- Subletting vs. subleasing
- Deciding if subletting is right for you
- How to sublet your apartment
- How to find a subletter
- How to sublease
- Sublease agreement
- FAQ’s
What is subletting?
Put simply, to sublet means to rent out the room or apartment that you’re currently renting to another person. That person (the sublessee) essentially takes over the remainder of your lease and agrees to pay all bills and payments moving forward. To sublet can also mean that you personally rent out someone else’s room, but we’re going to walk you through what it means to sublet your own room or apartment.
Let’s say you’ve signed a 1-year lease and, with 6 months left, suddenly find that you need to move out of the state or to a new city for a job or personal reasons. Breaking your lease is one option, but it can be costly for myriad reasons. That’s where subletting comes in. Subletting your apartment to someone else for those 6 months is a great alternative and one that can save you a bundle of money.
What is a subletter?
A subletter, also known as a subtenant, leases property from a primary renter. If you’re in the middle of a lease agreement and need to relocate, finding someone to sublet your unit offers a possible solution. You may also want to sublet your place if you cannot live at the property for a time during your lease agreement but plan to return. One thing to remember is that subletting and subleasing are different, so make sure you know which one you.
Subletting vs. subleasing
Subletting and subleasing are both options for rental properties and are often terms used interchangeably, although they are different ways of handling when you need to move out before your lease is up. In short, subletting allows a new renter to take over the lease directly with the landlord, while subleasing involves renting all or part of the space to another renter through the original renter.
Understanding the key differences
- Subletting, also known as reletting, allows the landlord to create a new rental agreement with a new renter and collect rent directly from them. By reletting the property to another renter, the landlord can void the lease with the original renter, allowing them to move out and not maintain responsibility for paying the rent.
- In a subleasing arrangement, the original renter maintains responsibility for the rental unit and simply leases the space to another renter. You remain the renter on the unit and are still responsible for any damages incurred.
This difference between sublet and sublease is one reason why it’s so important to screen sublease applicants carefully and make sure whoever is living in your home understands the rules so they don’t cause significant damage.
Should you sublease or sublet your apartment?
If you are thinking about moving out during your rental term or getting a roommate to share the space, you might wonder whether subleasing or subletting your space is best. Here are some considerations:
- Subletting when you need to move: If you need to move out and can find someone to sign a new rental agreement, subletting is often the way to go because it takes the financial and legal responsibility off of you.
- Subleasing to a roommate: If you have another bedroom or enough space to make a comfortable one, consider subleasing to a roommate. Your landlord may let you maintain one formal rental agreement and have you manage the rent and liability from the roommate. So, if you find someone that seems trustworthy as a potential roommate, this might be a good option for you.
- Subleasing if you can’t sublet: If your landlord won’t allow subletting and requires you to maintain the term of the agreement, you can find someone to rent your space, collecting rent from them and then turning around and paying the landlord that rent money to stay current on your lease.
Before you decide on subleasing vs. subletting, you need to find out what your landlord will allow. Also, make sure to check your renter’s insurance policy as it may specify terms about subleasing or subletting. For example. some insurance companies don’t cover renters when they have others subleasing a portion of their space and keep you as the main policyholder who is responsible for damages.
How to sublet your apartment
If you want to sublet your rental, you will need your landlord to agree to it, and then you can follow these steps:
- Find a new renter: Your landlord may require you to find someone who wants to enter into a rental agreement. Some landlords will let you out of your agreement if they are able to find a new renter within a certain period of time, while others will require you to do the work involved with showing the home and getting new renters interested.
- Understand your responsibility: If the landlord can’t find new renters right away, you would likely be responsible for paying the rent until they are able to relet the property or until your lease ends.
How to find a subletter for your apartment
Once you have verified your ability to sublet your apartment with your landlord, you can begin the process of finding a subletter. Here are the steps to take:
- Create an online listing
Posting online is the best way to find a sublet. You can post your listing on a number of sites, including social media sites, online classified sites, and short-term and long-term rental sites. While you’re online, use your own social media accounts to share information about the unit you have available for subletting to get the word out. You might have a friend or friend of a friend looking for a place.
- “Open” your home
Consider setting up an open house that allows interested parties to see the space. Make sure your home is clean and well-organized to make it look as appealing as possible to potential renters. If you’re not comfortable having anyone in your home, take a walkthrough video on your phone and use it as a virtual tour option for potential subletters to see your space.
- Screen your applicants
Before you sublet your unit to the first person who responds to your listing, make sure you know how to screen the applicants so you can choose the right person. If you live in an apartment that has a strict no pets policy, you want to make sure that the subletter you choose won’t bring in a dog or cat. It’s also important to make sure that the subletter has the financial means to pay the rent and can afford the monthly cost. Offering a formal application process for your sublet is the best way to get the information you need upfront for your landlord to be able to run a background check and accept the new subletter to take over your lease.
- Coordinate with your landlord
Once you’ve found the subletter, you will need to pass along their information to your landlord. The landlord will need to verify that the subletter is acceptable to take over the terms of your lease. You’ll then need to confirm your move-out date with both parties, and will need to confirm that your information will be taken off of the active lease and replaced with your subletter.
When subletting is not an option
If subletting your apartment is not an option due to the terms of your lease, you may want to consider subleasing. As we said earlier, subleasing is less ideal because you will still maintain responsibility for payments and the the condition of the rental unit. In this case, it is imperative that you carefully screen all interested parties, and create a sublease agreement to be signed.
Creating a sublease agreement will ensure that the individual renting your apartment from you will complete payments and will be responsible for ensuring the condition of the unit is up to standard. Since you will be collecting rent from your sublease, you don’t want to be left in a situation where the sublease is not holding their end of the deal.
How to sublease your apartment
If you want to sublease your rental property, take these steps to make sure you’re following the rules your landlord has set.
- Inform your landlord in writing: Many landlords will require their renters to let them know they’re planning to sublease in writing.
- Look for subleasers: Upon receiving approval to sublease your unit, you can then start looking for subleasers and drafting your own rental agreement. In most cases, as long as all people living in a rental property follow the rules set forth in the rental agreement, renters can sublease portions of the space to others.
- Maintain a legal agreement: This agreement should be between you and the individual subleasing your space. It should include the term of the sublease, any applicable rules, the amount of monthly rent and when it is due each month, where to send rent payments, and the legal terms that come with renting a house or apartment.
- Decide how to screen applicants: During the application process, consider how you plan to screen your applicants through background checks and credit checks.
- Check references: Before agreeing to sublease your space, consider speaking with applicants’ previous landlords to find out how they are as renters. To get this information, include a section in the subleasing application where they can provide contact info for their previous landlords and/or a request for personal references.
Drafting a sublease agreement
It’s important to have a sublease agreement so that the sublessor is not legally responsible for certain aspects of the original lease agreement, like rent payments and utilities.
Since you’re the one subleasing your room, apartment, or home, you’ll want to be the one to draw up the contract, unless your landlord says otherwise. Start with the template below and fill out all the information you can. Then, send it to your landlord to fill in the blanks. Once both of you have completed your part, it’s time for the sublessee to review it and fill out their parts. Everyone should complete and sign it. Make a copy of the completed sublease agreement for yourself and return the original to your landlord. Here’s what to include:
- Term – the length of the sublease agreement
- Rent – the amount due for rent each month
- Utilities – the amount due for utilities, or information on transferring utilities to the sublease
- Liability – protects the property within the unit and the maintenance of the property condition
- Guests – details the guest policy for the unit
- Security deposit – funds to be used in the event of any damage to the unit or failure to pay rent
- Move-in/move-out checklist – details the condition of the unit and the time of occupancy and vacancy
- Master lease – original terms of the signed lease provided by the landlord
- Signatures – all parties agree to the terms of the sublease agreement
To help you, we’ve provided a sublease agreement template to utilize.
FAQ’s: Subletting
Your most significant responsibility to your roommate is ensuring you cover your portion of the rent each month so that if you need to move out, your roommate may be totally on board with looking for a subletter. However, you shouldn’t find any subletter on your own if you live with others. Even if you’re looking for a subletter because you don’t get along with your roommate, you should try to ensure that everyone living in the space is involved from start to finish.
Let your roommate help with interviewing potential subletters — after all, they’ll have to live together. Your roommate may prefer to cover your part of the rent instead of living with someone new. Discuss your situation with your roommate or roommates before you proceed.
This will depend on which type of agreement you enter. If you enter a sublet agreement where the new renter takes over the lease with you landlord, you will not have any other obligations once the agreement is signed. However, if you enter into a subleasing agreement, you will be responsible for collecting rent from the new renter and making your normal rent payments to the landlord until the end of the lease term. You will also be responsible for making sure the unit has been cleaned out at the time of vacancy and that any damage is repaired.
You should not sublet your apartment without your landlords approval. If you do, you run the risk of being in violation of your lease, which could potentially lead to termination of your lease. As with most situations in life, transparency is best. Being honest and transparent with your landlord or property manager will ensure that there will be no issues.
This is a personal preference. A furnished sublet may be more appealing to renters looking for a short term living situation. However, if you choose to sublet your apartment with your furniture included, be aware that there could be potential damage to some of your personal property. You will also be responsible for removing the furniture from the unit at the end of the lease, so this is not ideal if you are planning a long distance move.
Yes, there may be varying rules for subletting in different cities. Take New York City for example. It is legal to sublet your NYC apartment under New York City sublease laws if you live in a building with four or more units. But New York City has relatively tough short-term subleasing restrictions, so there are several conditions that you should keep in mind if you plan to sublet your apartment.
According to New York City laws, you cannot sublet your apartment if you live in a rent-controlled building or public housing, or if you receive Section 8 public assistance. You may only sublease if you plan to return to your apartment at the end of the sublease, so this option may not work for you if you’re planning to run a short term rental business or want to sublease through the end of your lease.
New York City also has a “multiple dwelling” law, which means that NYC subleases must be longer than 30 days and shorter than two years. This may include short term and similar rental options, so you should check the latest city rules and regulations before trying to sublet this way. Check with the Department of Finance or Department of Buildings for the latest regulations. It may also make sense to consult a lawyer who has experience in real estate law.
Subletting is a great option if you find yourself in a situation where you need to move before the end of your lease term. If your lease allows, you will be able to release yourself of the obligations of the rental completely. However, if subletting is not an option, you may want to consider a sublease. Weigh the pros and cons of each option and decide which works best for your unique situation.
Ready for a change? Search through thousands of apartments for rent on Zumper and use these steps to find someone reliable to sublet or sublease your current place.
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