Definition of Subleasing



Subleasing occurs when a lessee leases a part of the leased item to another lessee. Subleasing or subletting is very common in house renting. This is legal unless the original lessor has forbidden it. If the lessor gives the lessee full passion for the property, the lessor can sublease the property to another lessee and share the rentals.

 


Assume you leased a house that has two floors. The tenant agreed to pay you $200 per month as rent. The tenant sublet another tenant on the second floor against monthly rent of $100. This way the tenant one will receive $100 from tenant two and pay the house owner $200.


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