What is a Sublet in NYC and Should I Try One?
Some people use the term “sublet” and “rental” interchangeably, but a “sublet” is actually a specific type of rental. Understanding the distinction can help you navigate the crazy New York city rental market.
NOTE: To search for NYC apartments go to frele.com (free service). Or, click for more rental tips
“Sublet” Defined
You may already have encountered the word “sublet” in your life especially when looking for a room or apartment in college towns or other cities as an intern. People often use the rental term “sublet” to describe a shorter rental (i.e.a summer sublet). However, this is technically not correct.
The term “sublet” actually refers to a sublease. A sublease is an agreement wherein the tenant – whose name is on the lease – rents out the property to another renter known as the subtenant or sublessee.
There are several reasons why the original renter chooses to sublet. However, it usually boils down to one of these two reasons:
- The tenant wants to cut down the cost of living in an empty property. For example, the tenant might be on a long vacation and won’t be back for a few months. Hence, they sublet their apartment and earn money by “subletting the place out”until they get back or until the lease expires.
- The tenant no longer wants to fulfill the remaining months on his or her lease. For example, they tenant may be planning to relocate to another state. As such, he or she may try to sublease the property until the original lease period is over. Note that this should only be done with landlord approval.
Should you live in a sublet?
Before you consider renting a “sublet” in New York City from rental websites like Frele.com or Leasebreak.com you should first consider the pros and cons of living in one.
Pros of Living in a Sublet
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Easier Vetting Process When Subletting
Landlords usually are picky with choosing renters. This is in part because the laws in NYC strongly favor tenants over landlords. Generally landlords run your credit, demand proof of income and require a bunch of other paperwork before they approve you. (See our list of the 6 documents many NYC landlords require).
However, you can skip some of this process when you are dealing with a tenant instead of a landlord. Tenants usually do not ask for nearly as much paperwork. Some tenants – unfortunately due to ignorance about the process but good news for you – actually ask for very little paperwork from prospective subtenants.
NOTE: If you are looking to rent a sublet – even though your lease is being signed with the current tenant – some landlords will still require you to apply through them and they will vet you rigorously.
- Discount on the Rent When You Sublet (sometimes)
The sublease rent varies depending on the agreement between the current tenant (sublessor) and the new renter/tenant (sublessee or subtenant). The rent for the subtenant can be cheaper than what the original tenant is paying. This is often the case if the current tenant wants the property to be filled immediately. While some tenants request that the asking rent be the same as the rent they are currently paying, subletting can still be a good deal. For example, while you as a subtenant may be paying the same as the original tenant, the apartment may be partially or fully furnished and you get a flexible lease term!
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Sublets Sometimes Have More Flexible Lease Terms
Whether people are trying to sublet their apartments because they are away on vacation, or because they are trying to find someone for the remaining months of their lease, the lease term for the sublet is usually less than one year. This is a very important distinction when compared to standard rentals. In fact, 90-95% of leases in NYC require one year minimum terms, but when you sublet you can usually get a lease term for less than one year. Therefore, if you want to live in an apartment for a shorter period of time, subletting is a great option.
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If You Find a Sublet You May Avoid the Broker Fee
Large cities, like New York, have real estate markets that are hard to navigate. Hence, most renters understandably seek the service of a broker. In many cases, broker fees can be quite expensive. When you are renting a sublet you often do NOT have to pay a broker’s fee because you are dealing with the tenant directly.
Cons of Living in a Sublet
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You Could Be Evicted if the Tenant is Not Allowed to Sublease
Most landlords usually allow their tenants to sublease. However, there are also those landlords who do not. It’s best to check with the current tenant to make sure the landlord is allowing him or her to sublet. You can also ask the current tenant for the original copy of the lease. If you are still doubtful you can try to go directly to the property manager or the landlord to clarify things. If the landlord doesn’t allow subleasing the property – and if he or she finds out you are subletting – you and the current tenant can be evicted from the apartment.
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Subletting May Not Offer the Same Legal Protection as Standard Renting
Theoretically, you should have similar rights when you are subletting compared with being a standard renter. This assumes your sublet is on the “up and up”. However, there are some cases when you as the sublessee may not have the same protections as the original tenant.
For example, if your tenant uses a sublease agreement which does not protect your rights as much as it should, then you need to be careful. Of course, there will be some NYC laws (outside of the lease agreement) that kick in to protect you. Still, you should read extra carefully any lease provided to you by the tenant. In fact, ideally, you should have an attorney review the sublease agreement.
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There’s a Chance the Original Tenant May Leave Unexpectedly
If possible try to do a bit of background check on the tenant whom you are subletting from. Unlike an established landlord who is harder to just disappear, the tenant may suddenly disappear and leave you hanging as the sublessee. While this is rare, you should take precautions. For example, it’s best to document any proof of payment, especially the rent and security. You might need these receipts in the future. This is why, once again, it would be helpful to have an attorney review the situation.
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You Have to Deal with a Middleman for Changes or Repairs
If you are subletting from the original tenant, then it may actually be easier in some cases to reach the tenant. This is a good thing. On the contrary when you are subletting from a more traditional landlord, sometimes it is hard to communicate with them because they are managing hundreds of other units and don’t even live in the same property, let alone the city or even the country!
However, on the flip side, when you want repairs or need changes made to the apartment the tenant may unfortunately have little ability to make those things happen quickly. Permission from the landlord is needed for repairs or changes to the unit, even if you already have the tenant’s nod. Unfortunately, the tenant becomes the middleman and has to get in touch with the landlord each time. Communication can get difficult.
Conclusion on Finding a Sublet in NYC
Renting a sublet in NYC can be a great “find”. However, it is important to fully understand the advantages and disadvantages before you enter such an agreement with a tenant.
For more NYC rental tips, please go to frele.com/learn.
This article was written by:
Phil Horigan, NYC Real Estate Veteran
Founder, Frēlē, the free and honest NYC rental marketplace
Producer, Phil’s NYC Rental Tips [YouTube Channel]
Blogger: flowfreely.com
Instagram: @philiphorigan
Phil has been a licensed NYC real estate agent since 2004 working for some of the top real estate brokerage firms in the industry. He founded Leasebreak.com in 2013, and Frēlē in 2017. Frēlē and Leasebreak are free and transparent rental marketplaces to search for or post apartments for rent in NYC
Go to frele.com to search for NYC apartments (free service).