Are Sublet Fees Legal?

Yes, sublet fees are legal. In certain circumstances, your landlord or co-op board can charge a sublet fee if you decide to sublet your co-op or rental unit. 

Subletting is a popular option for tenants who need a short-term subtenant (subletter) to stay in their place temporarily. Even if the parties sign a sublease agreement between themselves, the original tenant remains responsible for the original lease agreement.

If you’re unsure whether a fee is allowed, review your agreement and consider checking with a local real estate attorney for legal advice.

What Is a Co-Op Apartment?

In a co-op, or cooperative apartment building, residents don’t own their units outright. Instead, they own shares in a corporation that owns the entire property. Those shares give the resident a proprietary lease. But the co‑op board can approve subtenants and charge fees like sublet surcharges. 

What Is a Sublease?

People sublet their rental property for many reasons. A new tenant agrees to rent from the original tenant in a sublease agreement. The parties should enter into a sublet agreement that includes the following:

• Parties
• Lease term
• Monthly rent amount
• Rent payment due date

What Is a Sublet Fee?

A sublet fee is a fee your landlord or co-op board charges for allowing you to sublease your apartment or co-op unit. The original renter may charge the subtenant a sublet fee as part of their sublease agreement. Some renters use the fee as a security deposit to cover potential damage during the sublease.

Landlords, co-op boards, and the original tenant can use sublet fees to cover the following costs associated with the sublease:

• Background checks
• Application fees

One bad sublessor can cost you money and impact your ability to secure housing in the future.  Avoid potential issues and a negative mark on your rental history. Get expert legal advice before you enter into a sublease agreement. Find local legal help.

Can I Sublet My Co-Op Apartment?

It depends on your co-op sublet policy. In most co-operative apartment buildings, the shareholders who own an apartment in the co-op building can sublet their unit with board approval. As a shareholder, you likely signed a proprietary lease that allows the co-op board to collect a surcharge, such as a sublet fee.

Although your prospective tenant will need board approval before moving in, you should consider possible sublet fees before setting rent. The amount you charge for rent should include your maintenance fee and any additional fees charged per month by your co-op board.

Can My Landlord Charge a Sublet Fee?

It depends on your state’s laws and the terms of your lease. Almost all states allow a landlord to charge a reasonable sublet fee if it’s in their lease agreement.

Do I Need My Landlord’s Permission to Sublet? 

State laws vary on whether you need a landlord’s consent before subletting. For example, Alaska and New York require your landlord’s written permission to sublease your rental property.

Most lease or rental agreements include a sublet clause with instructions. If your lease agreement does not, still ask your landlord’s permission, preferably in writing. If you sublease without express consent, you may risk eviction.

Considering Subletting or Subleasing? Get Legal Help First

Several factors determine whether you will face fees for subletting your rental or co-op unit. A real estate attorney can help you understand rental laws and give you sound legal advice. Consider hiring an experienced, local attorney to get started.

FindLaw’s directory of landlord-tenant lawyers can connect you with qualified legal help near you. Because your state and local laws are relevant, your attorney should be licensed in the state where the property is. Enter your city or ZIP code for a list of legal professionals in your area. Your search results will also show important details about prospective attorneys, like ratings, areas of practice, and whether they offer free consultations.