Side-by-Side Comparison

Sublease vs. Assignment: Which Is Better for Your Exit Strategy?

Assignment releases you from the lease entirely. Subleasing keeps you in the middle — forever.

Sublease

You sublease your $5,000/month space to a subtenant at $4,500/month

$96,000 total exposure
  • ✓ Easier to arrange — you find the tenant, landlord approves
  • ✓ You continue as the responsible party — landlord relationship stays the same
  • ✓ Retains lease position if you might want the space back
  • ✗ You remain fully liable for master lease obligations
  • ✗ Subtenant default is your problem — you pay the landlord
  • ✗ You're paying $500/month (difference between master and sublease rates)
  • ✗ Ongoing monitoring required — subtenant violations affect you

Assignment

You assign your $5,000/month lease to a new tenant who takes over fully

  • ✓ Full transfer of lease obligation to assignee (with landlord consent)
  • ✓ You're out of the picture — no ongoing monitoring required
  • ✓ Personal guaranty can be released if negotiated
  • ✗ Requires landlord consent — landlord can reject or negotiate new terms
  • ✗ Original guaranty may survive without explicit release
  • ✗ Assignee must meet landlord's financial requirements
★ Recommended

The Verdict: Assignment

Assignment is always better if you can achieve it — full exit, no ongoing liability, clean break. The key is negotiating a guaranty release as a condition of assignment closing. Sublease keeps you in the middle indefinitely, creates double liability exposure, and requires ongoing monitoring. Use sublease only when assignment isn't available.

Key Factors in This Decision

  • Landlord's willingness to accept assignment
  • Strength of your proposed assignee financially
  • Whether the landlord will release your personal guaranty

Frequently Asked Questions

Can the landlord refuse to consent to assignment?
If the lease says the landlord has absolute discretion, yes. If the lease says consent 'not to be unreasonably withheld,' you may have legal recourse if refusal is unreasonable.
What happens to my security deposit when I assign the lease?
The deposit typically transfers to the assignee. Negotiate the transfer as part of the assignment transaction — you want reimbursement from the assignee for the security deposit you paid.

Know Which Option Is in Your Lease.

LiabilityScore™ reads your actual lease and tells you exactly what provisions you've signed — with specific dollar amounts and negotiation recommendations.

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