Primary vs. Secondary Leaseholder and Other Parties to a Lease

Whether you are signing a commercial or a residential lease, several other parties may sign the real estate lease. Lease agreements often confer rights and responsibilities on each party involved. Leases all have a landlord and at least one tenant but may include subtenants or sublessees.

This FindLaw article explains the different parties to a lease and their respective duties. If you’re uneasy or unsure about any of the terms or language in your lease, get legal help before you sign. A lease is a legal contract, and reviewing it with a local attorney can prevent issues or disputes later.

What Is a Residential Lease Agreement?

A lease is a legally binding contract between a landlord and a tenant. It covers the duties and obligations of all parties to the lease. For example, a residential lease should identify the landlord as responsible for common areas, while basic maintenance for the dwelling unit falls to the tenant.

The lease agreement should also identify the type of lease. For example, whether the lease is a fixed-term lease (often a year) or a month-to-month lease.

Terms of Lease

The terms of the lease cover many areas, including, but not limited to:

• Amount of monthly rent
• How to make rental payments
• Description of the leased premises
• Occupancy limits
• Security deposit amount
• The date when the tenant or renter can gain possession of the property
• Covenants
• Disclaimers
• Sublease/sublet rules

Other Lease Considerations

A lease should also include information on behaviors that may lead to eviction, such as unpaid rent or damage to the commercial or residential property. Although oral lease agreements are valid in some states, landlords should use a written lease to avoid unnecessary conflicts.

Primary vs. Secondary Leaseholder: What’s the Difference?

Under landlord–tenant law, there’s no legal difference between a primary leaseholder and a secondary leaseholder. But that changes if the lease terms explicitly state otherwise. This means both co-tenants occupy the rental property from the landlord for the same period.

The landlord receives rental income from both through the end of the lease. Each co-tenant is equally responsible for nonpayment and their share of expenses. This differs from the relationship between a tenant and a subtenant.

Landlord

A landlord is often the property owner or the owner’s agent. Real estate management companies often act as landlords for private or corporate entities. The landlord allows a tenant to use and occupy the rental property in exchange for payment of rent.

Landlord Rights and Duties

Landlords pay property taxes for most residential real estate or real property. Landlords also have the right to evict a tenant for lease violations, including nonpayment of rent. They cannot use self-help to remove a tenant from their dwelling unit.

Instead, they must follow local laws and ordinances regarding eviction, including giving their tenant written notice and a reasonable time to respond. If the tenant doesn’t pay or vacate the rental property within the allotted time, the landlord can go to court for an order to vacate.

An eviction can negatively impact your credit score and your ability to secure rental housing in the future. Legal help is available. Find a landlord-tenant attorney near you.

Anti-Discrimination Housing Laws Landlords Must Follow

Landlords must follow local and federal anti-discrimination housing laws. Fair housing laws, including the federal Fair Housing Act, prohibit the landlord from discriminating against tenants or prospective tenants in any aspect of the rental process or during their tenancy. Landlords cannot make any decisions based on a protected characteristic.

Protected characteristics include, but are not limited to:

• Age
• Race
• Ethnicity
• Religion
• Gender Identity
• Disability
• Familial Status

Tenant

A tenant is a person or entity with the right to occupy rental property per a rental agreement or lease. In addition to lease provisions, state law usually outlines tenant rights within its landlord and tenant law sections.

Subtenant

A subtenant is a party who rents from the tenant. Consider a commercial property that leases out part of the leased property to a commercial tenant. For residential leases, a subtenant often rents from the tenant named in the lease.

For example, the primary tenant rents a two-bedroom apartment and leases out one bedroom. In this scenario, the subtenant pays rent to the primary tenant, who pays rent to the landlord. Anyone considering this option should check with their landlord first.

A landlord may prohibit subleasing, and violating that rule can tie both the tenant and subtenant to an eviction case. An eviction lawsuit can negatively affect a tenant’s credit score. It can also create animosity between the tenant and the homeowner or property manager who has rented out the premises.

Roommates

Roommates listed on the lease are also tenants, and each one is individually fully responsible for the total rent due to the residential landlord unless the lease specifically states otherwise.

If only one roommate is on the lease and the others still need to sign the lease, only the roommate listed is a tenant. The others are subtenants. Only roommates who sign the lease are responsible for the total amount of rent to the landlord. Roommates often resolve claims between themselves through contract law rather than landlord–tenant law.

Parties to Commercial Lease Agreements

Commercial leases differ from residential leases in a few ways. First, most of these leases cover property zoned for businesses, while others are in mixed-use zones. Most commercial leases involve a lessor or a lessee. The lessor is the landlord or the party leasing out the property. Lessors rent property to a lessee.

Get Legal Help With a Rental Contract

Understanding a lease can be confusing. These agreements are legal documents and often contain complex legal terms and language. It’s natural to feel overwhelmed. Both landlords and tenants can benefit from an attorney’s expertise before signing a lease. An attorney can review the lease for red flags, illegal clauses, or terms that aren’t in your best interests.

FindLaw’s directory of landlord–tenant lawyers can connect you with qualified legal help near you. Because state and local laws are relevant, your attorney should be licensed in the state where you live. 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.