Lease clauses › Assignment and subletting

Assignment and subletting clause

An assignment-and-subletting clause controls whether, and under what conditions, a tenant may transfer the lease or part of the premises to another person. It is the central contract term for shared housing, roommate changes, corporate relocations and short-term rentals in 2026.

Assignment vs sublease at a glance

	Assignment	Sublease
Duration transferred	Entire remaining term	Part of term or part of premises
Original tenant's liability	Usually released (if landlord consents)	Remains primary — still on master lease
Rent paid to	Landlord direct	Sublessor (original tenant)
Typical use case	Job relocation, lease takeover	Summer away, spare room

Example wording

Assignment and subletting. Tenant shall not assign this Agreement or sublet all or any part of the Premises without Landlord's prior written consent, which shall not be unreasonably withheld. A request for consent must include the proposed occupant's name, rental history, credit information and intended use. Any assignment or sublease made without consent is void and a material breach of this Agreement.

Reasonable grounds for refusal

Proposed occupant fails standard credit or income screening.
Intended use violates local zoning (e.g., short-term rentals where banned).
Proposed occupant count exceeds occupancy limits.
Proposed subtenant has a documented history of lease default.

State variations

New York's RPL § 226-b gives tenants of buildings with four or more units a statutory right to request a sublet, with a 30-day landlord response window. California's "reasonableness" standard (Kendall v. Ernest Pestana Inc.) applies unless the lease expressly allows absolute discretion. Texas and Florida leave the matter entirely to the lease — a flat no-sublet clause is fully enforceable.

India practice

Section 108(j) of the Transfer of Property Act permits a tenant to sub-lease unless the contract says otherwise — almost every Indian lease does prohibit it. Unauthorised subletting under the Model Tenancy Act 2021 is grounds for eviction and forfeiture of the security deposit.

FAQs

What is the difference between assignment and subletting?

An assignment transfers the entire leasehold to a new tenant for the full remainder of the term — the original tenant steps out. A sublease rents the unit (or a room) to a new person for part of the term while the original tenant remains on the master lease and liable to the landlord.

Can a landlord unreasonably refuse consent to sublet?

In some states no. California Civ Code § 1995.260, New York RPL § 226-b and Illinois apply a "reasonableness" standard — the landlord can refuse only for a legitimate business reason such as unqualified credit or a prohibited use. Other states allow unrestricted refusal if the lease says so.

Is subletting without the landlord's consent grounds for eviction?

Yes in most states. Unauthorized subletting is a curable lease violation that supports a cure-or-quit notice (typically 3–30 days). Continued subletting after notice can lead to an unlawful-detainer lawsuit.