Subleases vs. Lease Takeovers in NYC: Which is Right for Me? (2024 Guide)

Introduction

If you're looking for a place to live in NYC, you've probably come across the terms sublease, lease takeover, lease transfers and other similar terms. This can be confusing to a first-time renter when trying to decide which rental arrangement works best for your unique circumstance. In this guide, I’m going to break down the differences between subleases and lease takeovers in the most simple terms possible while also giving you all the information you need to make the right decision.

At Atlas, we have thousands of subleases and lease takeovers from all across NYC. This guide will make it easier to understand what we offer as you search for your rental.

What Is a Sublease?

A sublease occurs when a tenant temporarily rents out their leased apartment to another person (the subtenant) for part of the lease term. The original tenant retains responsibility for the lease, including paying rent to the landlord and maintaining the apartment. The subtenant pays rent to the original tenant and typically doesn’t have direct interaction with the landlord.

Subleases are common in NYC, especially for those who need to relocate temporarily but want to retain their lease. It’s a flexible option that allows the original tenant to sublet their space without terminating or resigning the lease.

Sublease: Rights and Responsibilities

As a subtenant, your rights and responsibilities differ from those of a direct tenant:

Rights:

• Indirect Relationship with the Landlord: Your primary relationship is with the original tenant. This means you typically don’t have direct legal rights to enforce the lease terms against the landlord.

• Right to Use the Property: You can occupy and use the property as per the sublease agreement, but you must adhere to the restrictions in the original lease.

• Protection Under the Sublease Agreement: Your rights are governed by the sublease contract, not the original lease, although the original lease’s terms still apply. It’s important to use a valid and comprehensive sublease agreement to give yourself the most legally enforceable protections as possible.

• Rent Cost Stability: You pay rent to the original tenant, usually matching what they owe the landlord, and are generally protected from unexpected rent increases during the sublease term. In New York there are unique laws around how much a tenant can charge a subtenant for rent. According to the Rent Guidelines Board:

  "In New York City, a tenant subletting a rent-stabilized apartment is generally not allowed to charge the subtenant more than the current rent unless the apartment is furnished. In such cases, the tenant can charge up to an additional 10% of the rent for the use of furnishings.

  If the tenant overcharges the subtenant, the subtenant may be entitled to damages of three times the overcharge, along with potential attorney fees and interest on the overcharge. It is important for tenants to adhere to these regulations to avoid legal repercussions."

Responsibilities:

• Paying Rent: You must pay rent to the original tenant as outlined in the sublease agreement.
• Adhering to Lease Terms: You must follow both the sublease and original lease terms, including rules about noise, occupancy, and other building policies.
• Maintaining the Property: You’re expected to keep the property in good condition, with any damages potentially leading to deductions from your security deposit.
• Risk if the Original Tenant Defaults: If the original tenant fails to meet their obligations, you could face eviction, even if you’ve complied with the sublease agreement.

What Is a Lease Takeover?

A lease takeover involves a new tenant assuming the existing lease from the current tenant. The lease’s terms, conditions, and rent amount remain unchanged, and the new tenant takes on all responsibilities of the original tenant. In legal terms, this is called an assignment.

Key Aspects

• Inherited Terms: You inherit the existing lease terms, including rent amount and lease duration, without renegotiation.
• Remaining Lease Term: You’re bound by the remaining lease term, with the option to renew or negotiate a new lease afterward.
• Potential Cost Benefits: Lease takeovers can offer favorable rent conditions, especially if the original tenant secured a good deal.
• Transfer Process: While the landlord’s approval is required, the process usually involves less negotiation than signing a new lease.

Lease Takeover: Rights and Responsibilities

As the new tenant in a lease takeover, your rights and responsibilities mirror those of the original tenant:

Rights:

• Direct Relationship with the Landlord: You become the direct tenant, allowing you to handle issues like repairs and lease renewals directly with the landlord.
• Full Legal Rights: You inherit all legal rights under the lease, including protection from eviction, as long as you meet your obligations.
• Rent Control or Stabilization: If the apartment is rent-controlled or rent-stabilized, you inherit these protections.

Responsibilities:

• Paying Rent: You’re responsible for paying rent directly to the landlord.
• Complying with Lease Terms: You must adhere to all lease terms, just like the original tenant.
• Maintaining the Property: You must maintain the apartment and ensure it’s kept in good condition.
• Liability for Lease Violations: Any violations of the lease terms are your responsibility, which could lead to penalties or eviction.

Where to Find Subleases and Lease Takeovers

As mentioned in our dedicated guide to finding sublets in NYC, you can find subleases and lease takeovers online using social media sites like Facebook, Reddit, and Craigslist. You can also use dedicated subleasing platforms such as Atlas, Leasebreak, and Renthop.

• Facebook: If you’re looking for the most options, Facebook has the most sublets and lease takeovers by far. Some popular groups to look through are Gypsy Housing and Young Females: New York City, NYC- Apartments, Sublets, Roommates. If you’re not currently a member of these groups, we have a collection of their listings on our site with direct contact to the original post’s creator.
• Reddit: If you like the personal touch of Facebook, Reddit has a higher quality of options due to better moderation. Some of our favorites are r/NYCapartments and r/NYCroommates. Like with Facebook, we’ve organized these posts so you can search them easily.
• Atlas: That’s us! Atlas Rooms has a regularly updated collection of online subleases and lease takeovers that you can search through easily. One benefit to using Atlas is that you don’t need to be a member of all of these groups in order to access their listings.

Which Option Is Right for Me?

Your choice between a sublease and a lease takeover depends on your circumstances:

A Sublease is Right for Me If I...

• Don’t Want Full Lease Responsibility: If you don’t want to take on the risks and responsibilities that come with being on the lease, subleasing allows you to live in NYC without those terms and conditions.
• Can’t Rent for a Full Lease Term (12 months): If you are not looking to rent for the typical 1-year leasing period for many apartments, subleasing may be a good option because they tend to be shorter (1 - 12 months).
• Don’t Meet Credit Requirements: If you’re an international renter and don’t have an established American credit score or high credit score, subleasing may be a good option while you build American credit.
• Don’t Meet Income Requirements: If you don’t meet the income requirements to rent in NYC (typically 40x rent), subleasing may be a good option for you.
• Can’t Use an American Guarantor: If you don’t have an American guarantor and you can’t afford/use a guarantor service, subleasing may be a good option for you.

A Lease Takeover is Right for Me If I...

• Can’t Wait for a New Lease to Become Available: If the apartment available for lease transfer is not available to sign a new lease yet, doing a lease takeover allows you to claim tenancy until you’re able to sign a new lease.
• Want To Save Money: Lease takeovers are often less expensive because the rent is locked to the rent of the original tenant. If you want to avoid paying market rate before the lease renews, lease takeovers are a great option.
• Want Full Tenant Rights: In a lease takeover, the original lease is transferred to you, allowing you to assume all rights and responsibilities as a direct tenant of the landlord.
• Are Willing to Go Through an Application Process: Your application process for a lease takeover is similar to applying for a new lease. It involves a thorough application process similar to signing a new lease, with required documentation like proof of income and credit history. If you’re in a position where you can get approved through the process, then a lease takeover is a good option for you.

Conclusion

Both subleases and lease takeovers offer unique advantages depending on your needs. A sublease is ideal for short-term flexibility, while a lease takeover is better suited for those looking for a longer-term solution without committing to a full lease term upfront. By understanding the differences in application requirements, rights and responsibilities, and contractual obligations, you can make the best decision for your housing needs in NYC.