Sublessors

Sublessors are tenants who lease out all or part of their rental unit to another person under a sublease, while remaining liable to the property owner under the original lease. The person renting from the sublessor is the subtenant. A sublease typically exists under a master lease between the landlord and the sublessor and a later sublease between the sublessor and the subtenant. Subleases generally must conform to the master lease, and in many jurisdictions the landlord’s consent is required. If consent is not obtained or the sublease violates the master lease, the sublessor may face breach or eviction actions by the landlord.

Duties and liabilities: The sublessor remains responsible to the landlord for rent payments, property maintenance, and adherence to the master lease terms, and may be liable for the subtenant’s breaches. The subtenant owes rent to the sublessor and must comply with the sublease and, through it, with the master lease. The landlord’s remedies for nonpayment or violations typically flow through the sublessor, who bears risk if the subtenant defaults.

Termination and practicalities: Subleases terminate when the master lease ends or is terminated. A sublessor may terminate the sublease for breach, subject to local law. Sublessees should consider renter’s insurance, clarify who pays utilities and handles deposits, and understand occupancy limits and any restrictions inherited from the master lease.