Subtenancies

Subtenancies are arrangements in which a tenant leases all or part of their rented premises to a third party, known as a subtenant, while the original tenant remains bound by the lease with the landlord. The subtenant occupies the space and pays rent to the head tenant, who in turn remains liable to the landlord for rent, adherence to the lease terms, and any damages.

In most cases, a sublease is distinct from an assignment. A subtenancy preserves the head tenant as the contractual party to the landlord, whereas an assignment transfers the remaining term and responsibilities to the subtenant, potentially ending the head tenant’s liability. Whether a subtenancy is allowed depends on the lease and local law; landlords often require consent. Consent requirements vary, but many jurisdictions prohibit withholding consent unreasonably and may impose conditions such as screening the subtenant or obtaining a guarantor.

Key terms of a sublease typically include the subtenancy’s duration, the rent amount, how utilities are handled, whether a security deposit is transferred or new, permitted uses of the premises, occupancy limits, rules on further subletting, and maintenance responsibilities. The sublease creates a contractual relationship between head tenant and subtenant; the subtenant’s rights derive from that contract, while the head tenant remains responsible to the landlord for overall compliance.

Practical considerations include drafting a written sublease, confirming any original lease restrictions, obtaining landlord consent, and ensuring compliance with local tenancy laws. It is common to specify remedies for nonpayment or breach and to clarify how deposits will be managed and returned at the end of the subtenancy.