PROBLEMS OF SUB-LEASING

When I first started out as a real estate broker, one clause in lease contracts always stood out to me—subleasing is strictly prohibited unless the owner gives written approval. Nearly every template had this line tucked into the fine print.

At first, it felt overly cautious. I knew of people who rented condos, then turned around and listed them on Airbnb. Some even made a business out of it. So, I wondered: Why the paranoia?

It didn’t take long to learn the hard truths. Subleasing, while tempting, can become a legal and logistical nightmare—for everyone involved.

To break it down, let’s use three characters:

A: the property owner

B: the original tenant (lessee)

C: the sub-tenant (sub-lessee)

Here are real stories that show what can—and does—go wrong:

Story 1: The Sweetheart Swindle

A leased a unit to B. B subleased it to C. Turns out, C was running a love scam operation right out of the space. When the authorities came knocking, they traced the property back to A. Imagine their shock when they discovered the official tenant was B—and A had no clue who C was.

Story 2: The Locked-Out Business

C thought they had a great deal renting an office from B. Rent was paid on time, every month, without fail. One morning, C arrived to find the doors padlocked. The reason? B had stopped paying A. C was left stranded—caught in the middle of someone else’s broken agreement.

Story 3: The Sale Surprise

C had a cozy setup in a property they leased from B. One day, A sent a formal notice: the property was being sold, and they wanted it vacated. C was ready to comply—until B stepped in and said, “You can’t leave. We have a contract.” Stuck between a sale and a signed lease, C was caught in a tug-of-war they never saw coming.

Lesson?

Subleasing isn’t just a side hustle—it’s a risky game of telephone where someone is bound to drop the line. What seems like a harmless workaround can quickly spiral into confusion, legal disputes, or worse. Always read the fine print, and if you're thinking of subleasing—get the owner's blessing in writing. Otherwise, you might end up on the wrong side of the lock.