Tenants And Landlords Resource Guide - Michigan State University, College Of Law Page 17

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If the original tenant permits the
landlord a signed document describing
subtenant to pay rent directly to the landlord,
the agreement.)
the tenant runs the risk of not knowing if the
2. Assignment. Under an assignment
subtenant is continuing to meet the rental
agreement, the new tenant is substituted
obligations. When the subtenant is required
for the original tenant. When this is
to pay rent directly to the original tenant –
done, the original tenant is “cut out” of
and the tenant pays the usual rent to the
the entire lease agreement and the new
landlord – there is much less risk.
person steps into his or her shoes.
If the subtenant stops paying the rent, the
Accordingly, the new tenant will be
landlord can hold the original tenant
responsible for all obligations under the
responsible for missed payments. This
original lease, including rent, utilities,
amount can be withheld from the original
and damages – the original tenant will be
tenant’s security deposit, as can charges for
released of all obligations. (Note: If the
unpaid utility bills and damages beyond
landlord does allow an assignment, the
reasonable wear and tear caused by the
tenant should be sure to receive from the
subtenant. The landlord’s recourse is with
landlord a signed document describing
the tenant under the original lease, not with
the assignment and the release of
the subtenant. The tenant’s recourse is with
obligations.)
the subtenant, under the sublease.
(See Security Deposit Timeline at the end
For this reason, it is risky to sublease
of this Guide.)
rental property. Therefore, tenants should
take all necessary precautions to ensure that
they are subleasing to a financially
responsible subtenant (e.g., running a credit
check, asking for a reference from a
previous landlord).
Q6 Can the original tenant be released
from the obligations under the lease?
Sometimes, yes. Subleasing can be a
complicated procedure, particularly if the
tenant is leaving the area for the period of
the sublease. There are two other ways that a
tenant can be released from the obligations
under the lease, which differ from a sublease
arrangement:
1. Mutual agreement. Though it is rare, a
landlord sometimes allows a tenant to
terminate the lease early. Therefore, it is
a good idea to talk to your landlord
before looking for someone to sublease.
(Note: If the landlord does allow the
tenant to break the lease, the tenant
should be sure to receive from the
T e n a n t s a n d L a n d l o r d s R e s o u r c e G u i d e
Page 15

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