Underlet

To sublet or lease property that one already leases or owns to a subtenant or another party. This involves granting temporary rights of occupancy and use of a portion or all of the original property to a secondary renter. The original tenant retains responsibility to the original landlord, even if the subtenant fails to fulfill obligations. The agreement generally encompasses aspects like rent, maintenance, and the duration of the sub-lease. It's a common practice in residential and commercial real estate when the primary tenant cannot fully utilize their rented space.

Underlet meaning with examples

• John, having found a job overseas, decided to underlet his apartment for six months. He meticulously screened potential subtenants, ensuring they would abide by the building's rules and pay rent on time. The contract clearly outlined his responsibilities as the primary leaseholder.
• The company decided to underlet a portion of its office space to a startup. This generated additional revenue and made better use of their existing facilities until their team grew further, requiring the larger space, all the while staying committed to the terms of the initial lease.