Is It Legal To Sublet a Rent-Controlled Apartment?
By Andra DelMonico, J.D. | Reviewed by Canaan Suitt, J.D. | Last updated on May 9, 2025 Featuring practical insights from contributing attorney Luise A. BarrackSubletting a rent-controlled apartment might seem like an easy way to cover rent, but it’s more complicated than it looks. As subletting gains popularity through platforms like Airbnb and Vrbo, renters may be tempted to rent out their primary residence. However, subletting a rent-controlled apartment can lead to legal issues if not handled correctly. Learn the laws and regulations that could affect your ability to sublet and avoid any unintended legal consequences.
What Is Subletting?
Subletting is when a tenant rents out a property that they have already signed a rental agreement for with the property’s landlord. The person who signs a second lease with the tenant is a subtenant. The laws governing subletting vary, so it is best to speak with a landlord/tenant attorney before taking any action. In addition, in jurisdictions that allow subletting, there are also laws that outline subtenant rights and responsibilities.
Tenants who sublet their rental can benefit from the arrangement because they can avoid having to pay rent out of their own pocket for an empty property. Subletting by having a co-tenant can also help them financially if they are living in the rental because it gives them cash flow to help cover living expenses. The drawback of subletting is that the tenant takes on additional risk and liability. If the subtenant fails to pay their rent or causes damage, it can create a larger financial expense for the primary tenant.
To successfully sublet a rental property, the tenant should first review the lease agreement. The lease will state whether it is allowed and any procedural requirements if it is allowed. If required, the tenant then must seek approval from the landlord. Once they have approval, the tenant needs to draft a sublease. Similar to other leases, it needs to clearly communicate the timeline, rent amount, and party responsibilities. Throughout the duration of the sublease, the tenant needs to clearly and promptly communicate with the subtenant and landlord. For example, maintenance requests from the sublessee need to be communicated to the landlord so that they can promptly address them. To protect themselves, tenants should keep a detailed record of all communications.
What Is Rent Control?
Rent stabilization laws are tools used by local and state governments to regulate rental home pricing when signing a renewal lease. The government regulates pricing by limiting the amount of rent that can increase over time. The goal of rent regulation is to ensure housing remains accessible and affordable for individuals living in the area beyond the public housing options. Rent control is often used in high-demand areas, such as urban cities. New York City famously has strong rent control laws. The Rent Guidelines Board (RGB) is an agency in Manhattan that meets annually to set rent adjustments.
How rent control is employed varies from one jurisdiction to the next. In an absolute rent control area, there is a maximum limit on the rent that landlords can charge, regardless of market conditions or outside factors. In a rent-stabilized jurisdiction, there is more flexibility. The law limits how often and the amount of rent increases. Typically, there is a percentage formula used to calculate the allowed increase. There are also rent control laws that govern rent increases when the rental unit becomes vacant. In a vacancy control jurisdiction, landlords cannot increase the rent to market rate. New tenants will pay the controlled rental rate. In a vacancy decontrolled jurisdiction, the landlord can increase the rental rate to market rate for new rent-controlled tenants.
The advantage of enforcing rent control laws for landlords is the reduced tenant turnover. However, the drawback is limited potential income. Rent-stabilized tenants benefit by having protection from sudden significant rent increases. The stability of rent translates to a more stable housing situation. The drawback is that finding housing can be more challenging as landlords choose to cease investing in rent-stabilized apartments in favor of those that are not rent-controlled.
[Potential clients] should look for [an attorney] who cares about what they do, likes what they do, and is prepared to give them the best advice. Make sure that you understand what your [legal options] are and what those options could look like going forward. Communication is critical.
Can I Sublet My Apartment Without Telling My Landlord?
It is not wise to sublet an apartment without consent of the landlord. Most leases either do not allow subletting or require the landlord’s approval of the proposed subtenant before doing so. Not following these lease terms will result in negative consequences for the tenant.
The tenant should understand the potential consequences of subletting the apartment without the landlord’s deemed consent. The tenant could be found in breach of their lease contract, resulting in eviction, loss of the security deposit, and additional damages. If there are laws in place that restrict or prevent subletting or short-term rentals, the tenant could face fines and penalties for breaking these laws. New York State takes its laws governing rent control, subletting, and short-term rentals seriously. Tenants can find themselves facing significant financial penalties. If the tenant hires a lawyer to represent them in each of these legal issues, the cost of representation can become significant.
Should a tenant sublet their apartment, and the landlord find out, they can expect a dispute to arise. The tenant will need to act quickly to resolve the dispute. They could try to amicably resolve the issue through negotiation or mediation. A landlord/tenant attorney can assist with this. If these efforts fail, the tenant should prepare for the landlord to take legal action in housing court. Consulting with a lawyer can help tenants understand the potential cost of their actions.
Is Airbnb Considered Subletting?
Yes, a tenant putting their rental home on Airbnb is considered a form of subletting. Airbnb and similar platforms are considered vacation or short-term rentals. The short-term guest will be staying on the property while the primary tenant still has an active lease agreement with the landlord. This makes the short-term guest a subtenant.
Many landlords include a term that addresses subletting by the tenant. This clause will typically prohibit short-term rentals. Even those leases that do allow subletting, many require landlord approval. Getting approval for each short-term guest would be tedious and impractical. In addition to the lease, many local jurisdictions have regulations on how to legally operate a short-term rental. A tenant attempting to operate one would need to adhere to these regulations by obtaining the required permits and licenses.
A tenant that sublets short term rentals in violation of the lease risks getting evicted and possible legal action. They may also face penalties and fines from the local jurisdiction for not complying with the law. This violation can have broad reaching impacts on the landlord, who will seek compensation for damages from the tenant.
Can I Sublet My Apartment on Airbnb?
Whether or not a tenant can sublet their apartment on Airbnb or other short-term rental websites will depend on several factors. The first is if the lease allows for short-term rental subletting. Even if a lease allows subletting, a tenant will also likely need to get approval for Airbnb rentals from the landlord. The second is if the local laws allow for short tern rentals. Places like NYC have strict laws on short-term rentals.
If the landlord and local law allow the tenant to sublet on Airbnb, the next step is to consider the potential risks. There is an increased risk of property damage. The tenant may find themselves liable for this damage. To address this, the tenant can purchase liability and property insurance. This is an additional cost to the tenant, but well worth it for extra coverage should something happen.
How Do Landlords Find Out About Subletting?
If a landlord does not allow subletting, they must take proactive action to discover a tenant subletting. One way to discover subletting is to perform routine inspections of the rental property. During inspection or maintenance visits, you can speak with the people living at the property. If they are not the individuals you screened and signed the lease with, then there could be subletting. While performing an inspection, all of the tenants may not be at the property. A landlord can check in with the neighbors or tenants in other rental units. This allows landlords to monitor tenant satisfaction while also resolving any disputes. During these conversations, a landlord can pick up on any signs that the tenant is subletting.
Outside of on-site inspections, landlords can look for signs of subletting. It could be an increase in maintenance requests because there is increased wear and tear on the property. It could also be an increase in payment issues. With multiple people subletting, there could be financial discrepancies or an increase in late payments.
A third option is to check rental platforms. If a landlord finds their property on long or short term rental websites, this is a clear sign that the tenant is subletting the rental.
Best Practices for Subletting a Rent-Controlled Apartment
If a tenant wants to sublet their rental home, the best place to start is by reviewing their lease. Then, they should speak with a real estate attorney to learn about possible applicable subletting laws. If they can sublet the rental, they need to learn about rent control laws that could impact their subletting. The next step is to obtain approval from the landlord for the proposed subletting. It is best to request and get written consent. Send a notice to the landlord by certified mail to have documentation of receipt by the landlord. Some landlords may charge the tenant a sublet allowance. This is a fee the landlord charges the primary tenant to sublet their tenancy.
Work with a lawyer to draft a clear sublease agreement. The term of the sublease needs to comply with the law and the primary tenant’s lease. There also can’t be any terms that violate tenant rights. Provide the landlord with a copy of the proposed sublease. Communicate with the subtenant and landlord to ensure everyone is on the same page. The subtenant needs to understand and follow the rules. The landlord needs to understand that another tenant will be living on the property. Provide both parties with contact information in case there is an emergency.
The primary tenant needs to protect themselves and their interests. The only way to do this is by documenting everything. Having a written request and approval ensures you have evidence to validate your position should a conflict arise later. Take pictures and videos to document the condition of the property before and after the subletter moves in and out.
Luise A. Barrack, a real estate attorney at Rosenberg & Estis in New York City, discusses the importance of hiring the right attorney and shares some tips for what to look for when hiring an attorney. “[Potential clients] should look for [an attorney] who cares about what they do, likes what they do, and is prepared to give them the best advice. Make sure that you understand what your [legal options] are and what those options could look like going forward. Communication is critical.”
Barrack also emphasizes the importance of considering the financial aspects of owning and renting real estate. While she primarily represents real estate investors, she speaks to the financial aspect of any real estate matters. “You have to go through what the economics are going to be. Looking at the economics, does this make sense to do? Consider the cost of litigation. If there’s a way to resolve [the legal issue] and not leave it in the hands of a third party [like a judge], you’re certainly better off being able to do that.”
Find Experienced Legal Help
Subletting in a rent-controlled unit can offer flexibility, but the risks often outweigh the benefits if you’re not well-versed in the law. Strict regulations governing rent control and subleasing could lead to severe penalties, including eviction. To ensure you’re complying with all legal requirements, it’s essential to speak with a lawyer. A legal expert can provide personalized legal advice, helping you navigate complex rules and avoid jeopardizing your lease.
Visit the Super Lawyers directory to begin your search for an experienced real estate attorney who handles landlord-tenant law issues.
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Enter your location below to get connected with a qualified attorney today.Additional Tenant Rights articles
- Know Your Tenant Rights
- What Can You Do If Your Lease Looks Unfair?
- What Are My Privacy Rights as a Tenant?
- When Can a Tenant Withhold Rent?
- Do I Have To Pay Rent if My House Is Uninhabitable?
- Can I Sue My Landlord for Personal Injuries?
- When Should a Tenant Get a Landlord-Tenant Lawyer?
- When Can a Landlord Keep a Security Deposit?
- Can Tenants Make Improvements Without Landlord’s Permission?
- Can a Tenant Evict Another Tenant?
- Can Someone Live with You if They Are Not on the Lease?
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