Sublets
The following is excerpted from The Court TV Cradle-to-Grave Legal Survival Guide, an easy-to-read, in-depth explanation of the law as it affects all aspects of daily life. You can order the book, published by Little, Brown and Company, from our online store. It also is available in local bookstores, or you can call Little, Brown directly at (800) 333-3476.
WHAT IS A SUBLET?
In a sublet a third party agrees to rent a house or apartment for a portion of the time remaining on the lease. The original tenant retains control of the lease and usually is responsible for paying the rent and for any problems that arise. So, the sublettor becomes the tenant of the leaseholder. But, the landlord may agree to accept the rent directly from the sublettor.If the original tenant had decided to give up the apartment and let a third party take over the entire two-and-a-half years left on the lease it would have been called an assignment.
DOES THE LANDLORD HAVE TO GO ALONG?
In general, yes, unless state law allows the landlord to insert a no-sublet clause into the lease, which many do. The landlord may reject individual applicants if he determines that their finances are insufficient to pay the rent or if they are unsavory characters.
CAN THE LANDLORD RAISE THE RENT OF A SUBLETTOR?
Possibly. A lot depends on what the lease says. If the lease requires the landlord's approval for a sublet, which most do, the landlord may indeed be able to require additional rent before approving the sublet. However, in many states that have rent stabilization laws, the landlord can only charge the sublettor an amount equal to what he could have charged if a new tenant entered into a new lease. (So if the law only allowed him to raise the rent for a new lease five percent, he could only charge a sublettor five percent over the current rent.) In states with no rent regulation, the landlord could charge as much as he wanted so long as the lease did not specifically restrict him.
CAN THE LEASEHOLDING TENANT CHARGE THE SUBLETTOR MORE THAN HE OR SHE PAYS THE LANDLORD--AND POCKET THE DIFFERENCE?
Not usually. Leases don't typically give the tenant much flexibility to set a sublet rate. In the rare case when a lease doesn't address the issue and the rent is not regulated, then the tenant could charge whatever he wants.
