Sublease: you stay on the lease
Your lease with the landlord stays as it is. The person moving in lives there under you and usually pays the rent to you, and you keep paying the landlord. Because your name is still on the lease, the landlord still looks to you if rent is late or the place is damaged. Most leases require the landlord's written consent before you sublet.
Lease takeover: the lease moves to them
The landlord screens the new person and puts the lease in their name, and from then on they pay the landlord directly. Buildings also call this a relet, a lease transfer or a lease assumption. Some landlords release you from the old lease completely and some keep you liable, so ask in writing whether you are released and keep the answer.
The difference, side by side
- Whose name is on the lease: in a sublease, still yours. In a lease takeover, theirs.
- Who pays the landlord: in a sublease, you do, usually with the rent the other person pays you. In a lease takeover, they do.
- Who the landlord comes to if rent is late: in a sublease, you. In a lease takeover, them, and possibly you too if you were not released.
- Who screens the new person: in a sublease, mostly you, though your landlord may want to approve them. In a lease takeover, the landlord.
Which one your building allows
Read your lease's clause on subletting and assignment, then ask the leasing office. Some professionally managed buildings, student housing especially, do not allow subletting and offer an official lease takeover instead. A few states and cities also have their own subletting rules.
What still needs writing down either way
The landlord's paperwork covers the landlord. It does not cover what the two of you agreed with each other.
- The split month: who pays for which days of the month you hand over.
- Credits on the lease: any rent concession or credit, so it is not a surprise later.
- Deposit or furniture money: anything one of you owes the other.
- Move-in condition: dated photos of the place on handoff day.