How It Works States Document Types Tools Guides Blog About Create Document - $7.99

Sublease vs lease assignment: what is the difference

Sublease vs lease assignment: what is the difference

A tenant needs to leave early and has someone ready to move in. Whether that's a sublease or an assignment sounds like a technicality. It decides who pays the landlord, who the landlord can sue, and whether the original tenant is still on the hook a year from now.

Side by side

QuestionSubleaseAssignment
What transfersPart of the term, or part of the unitThe entire remaining lease
Original tenant's roleStays the tenant; acts as landlord to the subtenantSteps out of the unit
Who pays the landlordUsually the original tenantThe new tenant, directly
Can the landlord sue the newcomer?Generally no direct claim on the leaseYes, the new tenant took over the lease
Is the original tenant still liable?YesUsually yes, unless released

How a sublease works

The original tenant keeps the lease and rents the unit, or a room in it, to a subtenant for some or all of the remaining term. The subtenant's agreement is with the original tenant, not the landlord, so the subtenant generally pays the original tenant, who pays the landlord. If the subtenant stops paying or damages the place, the landlord looks to the original tenant. Subleases fit temporary absences: a summer away, a work assignment, a semester abroad. See subletting and how to document it.

How an assignment works

The original tenant transfers the whole remaining lease, and the new tenant steps into the original tenant's place. Because the new tenant took over the lease itself, the landlord can collect rent from them and enforce the lease against them directly. That's the main practical difference. Assignments fit permanent moves.

The liability trap

Here's what surprises departing tenants. In most states, an assignment doesn't release the original tenant from the lease. The landlord gains a second person to collect from; it doesn't lose the first. If the new tenant stops paying, the landlord can still pursue the original tenant for the rest of the term. The only clean exit is a written release from the landlord, sometimes called a novation, that substitutes the new tenant and lets the original one go. Ask for it. Many landlords will sign one for a well-qualified replacement. See breaking a lease early.

Consent comes first

Most leases require the landlord's written consent before either a sublease or an assignment, and many say consent can't be unreasonably withheld. Some states have their own rules for certain rentals. Skipping consent is a lease violation and can put the tenancy at risk. For landlords, the controlled approach is to allow either with approval and screening; see allowing subleasing without losing control.

Picking one

  • Coming back? Sublease, with a written sublease agreement and landlord consent.
  • Leaving for good? Assignment, with landlord consent and a written release.
  • Roommate leaving a shared lease? Neither may fit cleanly; see when a roommate moves out mid-lease.
Found this guide useful?
Add Your Lease Agreement as a preferred source on Google to see our guides first.

Frequently Asked Questions

What is the difference between a sublease and an assignment?

In a sublease, the original tenant rents some or all of the unit to a subtenant for part of the remaining term and stays the tenant under the main lease. In an assignment, the original tenant transfers the entire remaining lease to a new tenant, who takes over the tenant's position and deals with the landlord directly.

Who pays rent to the landlord in a sublease?

Usually the original tenant. The subtenant pays the original tenant under the sublease, and the original tenant pays the landlord under the main lease. Some arrangements let the subtenant pay the landlord directly, but the original tenant remains responsible if the rent is not paid.

Is the original tenant still liable after an assignment?

Usually yes. An assignment makes the new tenant directly responsible to the landlord, but the original tenant generally stays liable as well unless the landlord signs a release, sometimes called a novation. Without that release, the landlord can pursue the original tenant if the new one stops paying.

Do I need the landlord's permission to sublease or assign?

Most leases require written landlord consent for either, and many state the landlord may not unreasonably withhold it. Some states have statutes on subletting for certain rentals. Doing either without required consent can be a lease violation, so read the clause and get consent in writing.

Which is better for a tenant who is leaving for good?

An assignment with a written release from the landlord. A sublease suits a temporary absence, since the original tenant keeps the lease and comes back. For a permanent move, an assignment puts the new tenant in your place, and the release is what ends your responsibility.

Document the Sublease Properly

Generate a completed, state-specific sublease agreement with the term, rent, landlord consent, and responsibilities spelled out for the original tenant and subtenant.

Create Your Sublease Agreement ($7.99) →