Define Sublease
A sublease is an agreement created between the lessee and a third party that is not included in the original lease. This agreement, most common in apartment and housing situations, can be a verbal or formal contract that allows the lessee to transfer the lease obligations and payments to the third party. The original lease agreement is still binding, and the lessee assumes all responsibility of the terms and financial obligation if the third party does not honor their end of the agreement.
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History
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Subleases were created to allow a lessee to transfer the responsibilities of the lease to another party in case of an emergency or unforeseen circumstance. For example, if the lessee decides to relocate to another state or country, they have the option of finding someone, a third party, who can take over the contract. Other reasons for a sublease can be marriage, physical disability, and the loss of a source of income.
Benefits
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The greatest benefit of a sublease is that it eases or eliminates the financial responsibility from the lessee. This can also help save the security deposit paid on the property or apartment in a real estate situation. A security deposit is the amount of money paid in advance by the lessee in the event of damage or early departure from the property. Another benefit of subleasing is storage. In some agreements the lessee can leave furniture or other belongings in the property until the end of the lease.
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Warning
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There are a few potential problems that can arise from a sublease. The third party can decide to leave and break the agreement. The third party could also damage the property or break important rules set by the property manager. This could cause the sublease to be canceled, and the lessee would have to assume the responsibility of the financial arrangement. Another potential problem a sublease can have is missed or late payments. For example, if payments are to be made on the first day of the month and the third party neglects to pay, the lessee is then responsible for that payment.
Types
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There are different types of sublease agreements. As earlier discussed, there are verbal non-contractual agreements or an actual contract to sublease. Another type of agreement is when a sublease is used to ease the financial responsibility for a specified amount of time including summer vacation, holiday breaks and overseas trips. Some lessees can find students or vacationers who may want to take on the lease for a few months while the lessee is away. In some cases the lessee can trade homes with another lessee during a vacation trade in which they don't exchange money but addresses for a short period.
Effects
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A sublease can have a positive effect on the entire community. A vacant or abandoned home can cause neighbors problems with property value and selling their home. A sublease can keep someone living at a property temporarily until it is sold or rented to another person.
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References
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