When a tenant needs to move out before their fixed-term lease is over, they often believe they can simply have a friend “take over the lease.” However, the legal process for transferring a lease to a new person is highly structured and falls into two distinct categories: assignment and subletting. While they may seem similar, they have vastly different legal implications for the original tenant. Understanding this critical distinction is essential for anyone looking to exit a lease early without incurring significant financial risk.

A sublet (or sublease) is the more common of the two scenarios. When a tenant sublets their apartment, they create a new, temporary tenancy agreement between themselves and a new resident, the sublessee. The original tenant essentially becomes the “landlord” to the sublessee. Crucially, the original lease agreement between the original tenant and the landlord remains in full force and effect. The original tenant is still the person legally responsible for paying the rent to the landlord and for any damage to the property. If the sublessee fails to pay rent, the landlord will pursue the original tenant for the money, who must then try to collect from their sublessee. A sublet does not release the original tenant from their contractual obligations.