Lease Assignment

Subletting is when a tenant transfers part of their rights and obligations in a lease contract to a third-party (a subtenant) but remains responsible for the original lease. Typically, the transferred responsibilities to the subtenant are only for part of the leased space (e.g. renting a specific room in the apartment suite) or for part of the lease term (e.g. renting the entire apartment to the subtenant for one month out of a yearly lease).

In a sublease, a new lease agreement is created where the original tenant acts as the landlord and the subtenant acts as the new tenant. However, the original tenant is still liable for the lease to the original landlord. For example, if rent isn't paid on time by the subtenant, the original tenant can be subject to consequences (like an eviction notice) from the original tenant's landlord.

In a Lease Assignment, the original tenant transfers all their rights in the lease agreement to the assignee. A new lease is not created, the original lease is simply transferred to a new person. The assignee will typically interact directly with the landlord (e.g. to pay rent, request repairs and maintenance, etc.), but the original tenant can still be held liable on the lease unless the landlord releases them of their liability.