Re-Renting Your Apartment

Three legal procedures exist for re-renting your apartment. The method your landlord is willing to accept will determine which one you choose.

Novation · Assignment · Sublet
The general principles below apply broadly across the U.S., but specifics on security deposits, fees, and required forms vary by state. References to Massachusetts law are noted where they appear. Always confirm with a local attorney for your jurisdiction.

The Three Methods Compared

Each method changes who's on the hook for the rent, the damages, and the security deposit. Pick carefully.

01

Novation

A release and surrender agreement between the landlord, the original tenant, and the new tenant. The original lease is ended by agreement with the landlord, freeing the original tenant from further contractual obligations. A new lease is drawn between the new tenant and landlord, and the new tenant pays rent directly to the landlord.

Although not required by law, some landlords request a fee in return for novation — from a few dollars to more than $100. Because the original tenant is free from the contract, any security deposit must be returned according to state law (Massachusetts in the original context).

  • Original tenant fully released
  • Security deposit returned promptly
  • Best outcome for the outgoing tenant
  • Landlord must agree
02

Assignment

An agreement between the two tenants — new and old — for the remaining term of the lease. The new tenant pays rent directly to the landlord; however, the landlord can sue either the new tenant or the old one for any unpaid rent.

The old tenant can also sue the new tenant if the new tenant doesn't meet contractual obligations. Because the agreement is made within the context of the original lease, issues relating to damages and the security deposit should be mutually negotiated by the two tenants and the landlord. As with novation, the landlord may charge a fee.

  • Original tenant still liable as backup
  • Same lease terms continue
  • Deposit handling is negotiated
  • Middle-ground risk
03

Sublease

An agreement between two tenants for less than a full term, less than the full premises, or at a different rental rate than the original lease. In a sublet, the original tenant remains responsible to the landlord under the original lease and can be sued for any unpaid rent or breach by the new tenant.

However, the original tenant may then sue the new tenant to recover any amount paid to the landlord. The original tenant's security deposit may not be returned until 30 days from the expiration of the lease, so new and original tenants should draw up their own agreement about damages. Again, the landlord may charge a fee.

  • Original tenant fully liable
  • Flexible on term and rent
  • Deposit returned at lease end
  • Highest risk for outgoing tenant

This is general information, not legal advice. The right move depends on your lease and your state.

For further information regarding re-renting apartments, contact your attorney. A short consultation before you sign anything can save thousands of dollars in disputed rent or deposit later.

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