Sublease Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Sublease, written in plain English, along with examples of how it is used.

What is Sublease?

(n) when a tenant let out the whole or part of the property rented by him a to a third person it is called ‘sublease’. Even though it is rented out fully, the first tenant will be responsible for payment of rent and all charges to the landlord and he is also responsible for all loss caused by the sub lessee to the property. There is no agreement with the landlord and the sub-tenant. The landlords generally discourage such subleasing by banning it in the lease agreement.

History and Meaning of Sublease

Sublease, also called sublet, is a popular term in the real estate industry referring to when a tenant rents out all or a part of a rented property to another person, who then becomes the subtenant. The sublease agreement between the original tenant and subtenant is separate from the lease agreement between the tenant and the landlord. In a sublease, the tenant who is subleasing is responsible for paying the landlord rent and any damages caused by the subtenant.

Examples of Sublease

  • Sarah is going to be studying abroad for the next semester, but doesn't want to lose her apartment. She finds a subtenant to take over her lease temporarily while she is gone.

  • John moves to a new city but still has time left on his lease agreement. Instead of breaking the lease and incurring penalties, he decides to sublease his apartment to someone else.

  • Rachel rents a warehouse space for her small business but doesn't need the entire space. She subleases a portion of it to another small business owner who also needs additional storage space.

Legal Terms Similar to Sublease

  • Assignment: When a tenant transfers their entire lease agreement to another person.

  • Landlord: The owner of the property being rented out.

  • Tenant: The person who is renting the property from the landlord.