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
| Question | Sublease | Assignment |
|---|---|---|
| What transfers | Part of the term, or part of the unit | The entire remaining lease |
| Original tenant's role | Stays the tenant; acts as landlord to the subtenant | Steps out of the unit |
| Who pays the landlord | Usually the original tenant | The new tenant, directly |
| Can the landlord sue the newcomer? | Generally no direct claim on the lease | Yes, the new tenant took over the lease |
| Is the original tenant still liable? | Yes | Usually 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.