A sublease (or sublet) occurs when a tenant who holds a lease grants another party the right to occupy the property, or a portion of it, in exchange for rent. The original tenant remains legally responsible to the landlord under the primary lease, effectively acting as a landlord to the subtenant. Most leases require the landlord's written consent before subletting, and unauthorized subleasing is a common cause of eviction. Subleasing underpins rental arbitrage and is the mechanism through which Airbnb-friendly apartments and master leases allow operators to re-rent space. Terms such as duration, rent, and permitted use of the sublease typically cannot exceed the rights granted in the original lease.
Why this matters for property managers
This arrangement lets an operator generate rental income from a property they do not own, but it hinges entirely on the original lease permitting it, since subletting without consent is grounds for eviction and can void any protection. The tenant remains liable to the landlord for rent and damage even when the subtenant defaults, concentrating financial risk on the party in the middle. Operators who build on this model need explicit written permission and a clear understanding of that liability, because a single clause in the master lease can dismantle the entire business.
Frequently Asked Questions
Can I sublet my apartment on Airbnb without telling my landlord?
Who is responsible if the subtenant damages the property?
What is the difference between a sublease and a master lease?
Does the original tenant keep the security deposit from a subtenant?
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