Lease assignment

Example

Leo has seven months left on a $1,600-a-month lease when his job moves him to another city. With his landlord’s written consent, he assigns the lease to Kim, who moves in and pays rent to the landlord from November through the end of the term. If Kim stops paying in March, the landlord can pursue Kim for the rent, and, because Leo never got a written release, Leo as well. Had the landlord signed a release, Leo would have been clear the day Kim took over.

In a lease it looks like…

Tenant may not assign this Lease without Landlord’s prior written consent. An assignment does not release Tenant from liability under this Lease unless Landlord agrees to the release in writing.

Good to know

The release is the piece to ask for. Some landlords prefer to sign a brand-new lease with the incoming tenant, sometimes called a novation, which ends the original tenant’s obligations cleanly. Either way, get it on paper before handing over the keys.