An assignment, on the other hand, is a much cleaner and more complete transfer. When a tenant assigns their lease, they are transferring their entire interest in the lease to a new tenant, the assignee. The assignee steps directly into the shoes of the original tenant, signing a new agreement with the landlord and becoming directly responsible for all rent payments and other lease obligations. An assignment extinguishes the original tenant’s liability for the remainder of the lease term. For this reason, an assignment is almost always the preferable option for a tenant who is moving out permanently.

In both scenarios, the original lease agreement is the controlling document. Most leases contain a clause that requires the tenant to obtain the landlord’s prior written consent before they can either sublet or assign the lease. A landlord cannot typically withhold this consent unreasonably, but they do have the right to subject any potential new tenant to the same credit and background check process as the original tenant. A tenant who sublets or assigns their lease without the landlord’s permission is in material breach of their contract and could face eviction and financial penalties.