What does "Sub-lessee" mean in real estate?

Definition

A sub-lessee is a person or entity that leases all or part of a property from the original tenant (the sublessor), not from the landlord. This relationship is created by a sublease agreement under which the sub-lessee pays rent to and occupies the space under terms set by the original tenant for a portion of the remaining lease term.

Key points

The sub-lessee does not sign the primary lease with the landlord; their contractual relationship is with the original tenant.
The original tenant (sublessor) remains legally responsible to the landlord for rent, repairs and other lease obligations even after subleasing.
Many leases and local laws require the landlord’s permission to sublease; rules and enforcement vary by jurisdiction.
Subleasing can cover the entire unit or just part of the space for all or part of the remaining lease term.

How it works (simple flow)

Landlord → primary lease → Original tenant (sublessor) → sublease agreement → Sub-lessee. The landlord enforces the original lease against the original tenant; the sub-lessee’s obligations are to the sublessor under the sublease.

Practical examples

Residential: A renter relocates for a job for six months and subleases their apartment to a sub-lessee to avoid breaking the lease. The sub-lessee pays the renter; the renter still answers to the landlord for rent and damages.
Commercial office: A business with excess office space subleases desks or suites to startups. The startups (sub-lessees) pay the business (sublessor), which remains liable under the lease with the landlord.
Shared or mixed-use spaces: A retailer or manufacturer leases a large facility and subleases portions to complementary businesses, creating cost-sharing and collaboration opportunities for sub-lessees without direct landlord contracts.

Roles & responsibilities

Party	Role	Contract with	Primary responsibilities
Landlord	Property owner	Original tenant	Collect rent from tenant; enforce lease terms
Original tenant / Sublessor	Primary lessee who subleases	Landlord; sub-lessee	Pay rent to landlord; remain liable for lease obligations; manage sublease
Sub-lessee	Occupant who rents from the original tenant	Original tenant (sublessor)	Pay rent to sublessor; follow sublease agreement terms

Common questions (FAQ)

Can a landlord refuse a sublease?

Yes. Many leases require landlord approval before subleasing, and local laws may affect when a landlord can refuse. Always check the primary lease and applicable state/local rules.

Is the sub-lessee responsible to the landlord?

Generally no—the sub-lessee’s contract is with the original tenant. The original tenant stays legally responsible to the landlord. However, some arrangements (like an assigned lease) change this dynamic—assignment is different from subleasing.

How long can a sublease last?

A sublease can be for any period agreed by the parties but cannot extend beyond the original lease term unless the landlord agrees to a new primary lease or assignment.

Bottom line

A sub-lessee gains occupancy and use rights from the original tenant without entering into the primary lease with the landlord. Subleasing gives flexibility to tenants and access to space for sub-lessees, while the original tenant remains the party legally accountable to the landlord.