NYC Sublease Agreement – Ultimate Guide

What Is a Sublease Agreement?

A sublease agreement is a legally binding contract between an existing tenant, the “sublessor,” and a new tenant, the “sublessee.” This agreement allows the latest tenant to occupy all or part of a rental property.

The NYC sublease agreement refers to the original lease agreement between the existing tenant and the landlord, called the “master lease,” and outlines the new tenant’s responsibilities to the landlord. In most cases, the landlord must approve the sublease.

How to Sublet an Apartment in NYC 

1. Examine Your Lease

The first step to subletting your NYC apartment is to carefully review your lease. Most lease agreements require the primary tenant to obtain the landlord’s approval before subleasing. However, some leases explicitly state that one can’t sublet.

2. Understand NYC Sublease Laws

According to New York State law, most tenants have the legal right to sublet their apartment, regardless of the terms of their lease. However, you may still need to obtain permission from your landlord to do so. If you’re considering subletting your apartment, it’s essential to familiarize yourself with the NYC sublet laws.

3. Contact Your Landlord

The formal procedure requires you to send a written request via certified mail, requesting a return receipt. Your request should include all relevant information about your proposed subtenant and details about the arrangement, such as the duration of the sublease and the rent amount your subtenant will pay.

4. Find a Subtenant and Submit It to Your Landlord

According to New York law, your landlord must provide a reasonable explanation if they deny your request to sublet. For example, they might cite issues like poor credit or insufficient income of the proposed subtenant. The landlord has 30 days to either approve or reject your sublet request.

If they fail to respond within this time frame, it is legally an approval.

Additionally, if you rent a condo, a single-family home, or a portion of a multi-family property, you do not need board approval to sublet your apartment.

Subletting a Sponsor Unit in a Co-op

Subletting a sponsor-owned apartment is generally easier than subletting a standard co-op apartment. The sponsor (or developer) of a co-op building retains many exclusive rights regarding the apartments they still own. Notably, they do not require board approval to rent the apartment.

While you will still need to submit a rental application, the process is much more straightforward than renting a typical co-op apartment. It’s important to remember that sponsor-owned apartments must still comply with all New York City rental laws, including regulations prohibiting renting out apartments for less than 30 days, such as those related to Airbnb.

Subletting a Rent-Regulated Apartment in New York City

When renting out a rent-regulated apartment, you cannot charge your subtenant more than your current rent unless you are subletting a furnished apartment. In that case, you are allowed to charge a 10% surcharge. If you overcharge your subtenant, they can invoke the laws protecting rent-stabilized tenants from overcharges. This means the subtenant might be entitled to recover damages amounting to three times the overcharge, along with attorney’s fees and interest.

Additionally, as a sublessee in a rent-regulated apartment, you could fall victim to a scheme known as an “illusory tenancy,” which can be perpetrated by the landlord. An illusory tenancy is an illegal tactic used by some landlords and tenants whose main objective is to profit from rent-regulated apartments by charging rent that exceeds the legal regulated amount.

For example, if the legally regulated rent for an apartment is $1,000, but the landlord or the tenant of record sublets the apartment to you for $1,800, they are illegally profiting from you $800.

If you find yourself a victim of an illusory tenancy scheme, you can sue the landlord and the tenant of record for any overcharges. If your lawsuit is successful, you could recover the additional money you paid, receive damages of up to three times overcharged, and potentially gain possession of the apartment with a rent-stabilized lease.

To determine whether you are a victim of an illusory tenancy scheme, your first step should be to obtain a certified rent history printout for the apartment in question. You can request this document from the Division of Housing and Community Renewal.

Are There Alternatives to Subleasing in NYC?

Whether you plan to reclaim your apartment or not, breaking your lease or assigning it to someone else may be possible.

However, breaking a lease in NYC is complex. You will need to obtain permission from your landlord and find someone willing to take over your current lease agreement. This is challenging, as you’ll compete with your landlord for potential renters, and marketing the property may require significant time and effort.

NYC Sublease Agreement Bottom Line

If you plan to sublet an apartment in NYC, you must obtain approval from the landlord and sign a sublease agreement. This document will safeguard both parties and make the sublease official.

Getting the property owner’s approval ensures they know about the situation, which can help resolve any disputes.

Sublease Agreement NYC frequently asked questions.

What Happens if the Subtenant Doesn’t Pay Rent and Defaults?

If you decide to sublease your apartment, it’s essential to understand that, regardless of what your sublease agreement states, you are still responsible to your landlord for all terms and conditions outlined in your master lease.

If your subtenant fails to pay rent for six months, you will still be held accountable for any unpaid rent, late fees, and legal fees associated with the master lease.

What Happens When a Subtenant Continues to Occupy the Apartment After the Lease Expires?

The tenant of record is responsible and liable to the landlord for all terms and conditions outlined in the lease agreement, even if they have a subtenant. Therefore, if you cannot return the apartment to the landlord in a clear and free condition by the time the master lease expires, the landlord will likely initiate a holdover proceeding against you and the subtenant for legal possession.

Consequently, you may be held accountable for unpaid rent and legal fees since your lease is directly with the landlord, not the subtenant. However, if you have a valid sublease, you can sue your subtenant to reimburse those fees according to your sublease agreement.