What is the difference between subletting and assignment

Sub-letting unlocks numerous benefits for the tenant, especially if they want to share the cost of renting a property.

Even if the tenant chooses to sub-let however, they are still liable under the lease. This means that in the event that the head tenant vacates the building or ceases to trade the sub-tenant will lose their right of occupation and will be required to vacate as well.

Assigning a commercial lease is the legal transfer of the lease to a third party. With assignment, the original tenant is not liable under the original lease, and responsibility is legally transferred as of the assignment date. Unlike with sub-letting, when assigning a commercial lease, the original tenant does not share the property with the third party.

This option is therefore more commonly used when a tenant has to sell their business and no longer has use for the commercial space they are legally bound to lease for the remaining period of their tenancy.

Both sub-letting and assigning a commercial lease can only be done with the permission of the landlord or representing agent, a fact that will be stipulated in the lease itself. Subleasing and Assignment are two different processes that tenants can take advantage of to suit their specific business needs.

When a tenant decides to assign a lease, all his rights and responsibilities in the original lease agreement are released to the third-party assignee.

Hence, the original tenant the "assignor" will have to leave the unit and allow the new tenant to take over all of the leased building. It is important to check the clauses in the original lease agreement before committing an assignment arrangement. In some leases, the original tenant will remain responsible for the terms of the lease, especially if the new tenant defaults on the lease agreement or causes damage to the property. You may want to check your lease agreement for the option to pursue a permanent assignment so you won't be responsible for expenses or damages.

When a corporate tenant subleases an office , the tenant is transferring all or a portion of the premises for less than the entire term of the lease. But one is much more permanent than the other. Learn which option best suits your needs and situation by understanding the difference between subletting and assigning a lease. When a tenant decides to assign a lease, he is essentially giving up all his rights and responsibilities to the rental agreement and the unit to a third-party assignee.

As a result, the original tenant the "assignor" will have to vacate the unit and allow the new tenant to take over all of the leased premises. However, please note that under the terms of most lease agreements, the original tenant will remain responsible for the terms of the lease.

This is important if the new tenant defaults on the lease agreement or causes damage to the property. Do keep in mind that, sometimes, a landlord may in fact release the original tenant from liability under an assignment of lease. Your tenancy Get help. Print this page. Your Tenancy. Starting a Tenancy. During a Tenancy. Ending a Tenancy.