Under-tenant

An under-tenant, also known as a subtenant, is a person who rents property from a tenant, rather than directly from the property owner or landlord. This arrangement, often facilitated through a sublease agreement, allows the original tenant to, in essence, 'rent out' a portion or all of the property they are leasing. The under-tenant's rights and responsibilities are typically defined by the agreement with the original tenant and, often, indirectly by the master lease between the landlord and the original tenant. This situation can arise for a variety of reasons, including the primary tenant's need to relocate temporarily or permanently, or to generate additional income. The under-tenant's occupancy is always contingent on the original tenant's lease remaining valid and in good standing.

Under-tenant meaning with examples

• Sarah, needing to travel for six months, arranged for an under-tenant to occupy her apartment. The subtenant paid her rent, and Sarah remained responsible to the landlord for the property.
• The contract stipulated that the tenant could find an under-tenant as long as they gained approval from the landlord. This allowed the tenant to make their rent payments.
• Due to financial hardship, John found an under-tenant for his house. He would receive a portion of the rent from the under-tenant, easing his own burden.
• Because of the long commute, Mary decided to become an under-tenant and rent a room closer to her office. The agreement was advantageous for both parties.
• The housing contract detailed that an under-tenant agreement should be made only when the main tenant wished to sublet their rented property to another person.