Skip to main content
Education only. ClearMoneySchool does not provide individualized investment, tax, or legal advice. Why we don't give advice →
S&P 5007420.78+1.43%NASDAQ 10028,046+3.14%DOW52,129+1.04%RUSSELL 20002932.95+0.92%VIX17.92-13.26%GOLD$4165.80+1.68%SILVER$58.94+1.46%BITCOIN$64,890+1.84%
Live · 60s
8 indices tracked · Quotes may be delayed up to 15 minutes · As of 1:34 PM ET
Housing
Term 922 of 1038
1 min readTwo voicesHousing

Sublease.

A sublease is when you rent out part or all of your rented home to someone else while your name stays on the original lease.
Listen · two voices
Sublease
0:00 / 0:00

In plain English

A sublease (or sublet) is an arrangement where you, the original tenant, rent your place to another person while your own lease with the landlord is still running. The new person (the subtenant) pays you, and you keep paying the landlord. The catch is that you stay legally on the hook. If the subtenant trashes the place or stops paying, the landlord comes after you, not them. Most leases require the landlord's written permission before you can sublease, so subletting without asking can itself be a lease violation.

Most useful ages
18 to 35

01Why it matters

Subletting can cover your rent when you have to leave town for a few months without breaking your lease. But because you stay responsible, a bad subtenant can wreck your deposit and your standing with the landlord.

02The math, step by step

You signed a 12-month lease at $1,200 a month but get a 4-month work assignment in another city. With your landlord's written okay, you sublease to a coworker for $1,200 a month. They pay you, you keep paying the landlord, and your lease stays intact. If your coworker stops paying, you still owe the landlord the full $1,200, because your name is the one on the lease.

Illustrative example. The amounts here are hypothetical, chosen to show how the math works, not real quoted rates or figures.

03What this is NOT

Do not confuse with Assigning or transferring the lease

A sublease is not a clean handoff. In a lease assignment the new tenant takes over your spot entirely and you walk away. In a sublease you stay legally responsible the whole time, so you are never fully off the lease.

Found a mistake?
We log every correction on our public errata page.
Report it →
The Decoderby ClearMoneySchool

Plain-English answers from our glossary. Receipts included. Never advice.

Educational tool. Answers come only from ClearMoneySchool's published glossary and are not advice. Why we never give advice

Last reviewed June 11, 2026 · Reviewer Joseph Citizen, Founder