Landlord Tenant Guide - State of Michigan

Subleasing occurs when a tenant permitsanother party to lease the rental property thatthe tenant has leased from the landlord. (Note:The lease must allow the original tenant tosublease, and most leases specify that thelandlord must approve of the subtenant.) Thetenant, then, assumes the position of landlordin relation to his or her subtenant. Subleasingusually occurs because the tenant has signed afixed-term lease and wants—for whateverreason—to get out of the lease before itexpires. Since the original tenant is bound bythe terms of the lease, he or she cannot simplyleave the property and stop paying rent. Toavoid the financial burden of the unexpiredportion of the lease, the tenant usually tries tofind a subtenant who will assume that burden.Word of warning: Subleasing is notwithout its problems—so put it in writing.Under a sublease, the original tenant is stillbound by contract to the landlord by theterms of the lease. If the subtenant stopspaying rent or causes damage to the rentalproperty, the original tenant—not thesubtenant—must answer to the landlord. Ofcourse, the original tenant may have a legalcause of action against the subtenant for aviolation of the sublease.The following are important terms tounderstand:■ Landlord: The party agreeing to transferpossession and use of the rental property,usually the owner.■ Tenant: The party taking possession anduse of the rental property from the landlordunder a lease contract.■ Subtenant: A third party who takespossession and use of the rental property fromthe original tenant, under a sublease contract.The subtenant contracts with the originaltenant—not the landlord—but generally withthe landlord’s permission.■ Sublease: The contract between theoriginal tenant and subtenant, transferring,again, possession and use of the rentalproperty. (See Sample Sublease, page 37.)A written sublease contract provides the bestprotection. Because a sublease can onlytransfer what is left of the rights given to thetenant in the original lease, it is important thatthe tenant provide the subtenant with a copyof the original lease. Generally, yes. Most leases specify thatsubleasing or assigning an interest in the rentalproperty is not allowed without the landlord’sconsent, OR that subleasing or assigning is notallowed at all. But if the original leaseagreement is silent, then the tenant need notseek the landlord’s permission before enteringinto a sublease. First check the terms of theoriginal lease. Then, if permission is required,check with the landlord. The tenant can only sublease the rights heor she has been given in the original lease—nomore. For example, if the tenant has only threemonths left on a one-year lease, the tenant canonly sublease up to three months. The sameholds true with any restrictions contained inthe original lease—they all apply to thesubtenant and cannot be waived by theoriginal tenant. On the other hand, the tenantmay decide to sublet less than all of the rightshe or she has been given in the original lease(e.g., he or she may decide to return to therental property). Generally, when a tenant subleases, he orshe assumes the position of landlord inrelation to his or her subtenant. Accordingly,all of the laws that apply to landlords apply toa tenant who subleases. These duties areexplained in other parts of this book. Theyinclude the following:■ Complying with the duties to maintain ahabitable rental property and to makereasonable repairs, when necessary;■ Complying with the duties to register orlicense the rental property under local ordinance(check with the local housing office);■ Complying with duties imposed under thesecurity deposit laws and procedures; and