Lease Transfer: How to Legally Transfer Your Lease to Someone Else

How to Legally Transfer Your Lease to Someone Else

Life happens, new job offers, sudden breakups, or unexpected moves. But what if you’re locked into a lease and can’t afford to break it?

The solution might be a lease transfer (also known as a lease assignment). This guide explains how to legally transfer your lease to someone else, including:

  • The difference between lease transfer vs subletting
  • Legal steps to assign a lease
  • What landlords expect
  • Risks to avoid

Let’s break it down and help you walk away from your lease the right way, without penalties, lawsuits, or damage to your rental history.

What Is a Lease Transfer (Lease Assignment)?

A lease transfer, or lease assignment, is when a tenant legally transfers all rights and responsibilities of their rental lease to another person, known as the assignee.

Once the transfer is complete, you are no longer liable for rent or damages, the new tenant (assignee) deals directly with the landlord, and the lease continues under the original terms.

Example: You have 7 months left on a 12-month lease, but you need to move. Instead of breaking the lease and paying penalties, you find a qualified replacement, and your landlord approves the lease assignment.

Lease Transfer vs Subletting: Know the Difference

Feature Lease Transfer (Assignment) Subletting
Who takes over the lease? New tenant fully takes over You stay on the lease
Liability You’re off the hook You’re still responsible
Duration Remainder of the lease term Short-term or partial
Landlord approval Usually required Usually required

Tip: Use a lease transfer if you're leaving permanently. Use subletting if you're gone temporarily.

Is Lease Transfer Legal?

Yes, but it depends on:
  • Your lease agreement
  • Local rental laws
  • Landlord approval

Most leases require landlord consent before assigning. In many cases, landlords cannot unreasonably refuse, especially in rent-controlled cities like New York, San Francisco, or Toronto.

Check your lease clause for terms like “assignment” or “transfer of lease.” If it says “no assignment without written permission,” you’ll need to request that in writing.

How to Legally Transfer Your Lease: Step-by-Step

Step 1: Review Your Lease Agreement

Look for:
  • Assignment clause
  • Restrictions or fees
  • Notice requirements
  • Screening requirements for new tenant

If the lease prohibits assignments, try negotiating with your landlord anyway, especially if you offer a qualified replacement.

Step 2: Notify Your Landlord

Send a written request asking permission to assign your lease. Include:
  • Reason for the transfer
  • Proposed new tenant’s name
  • Your proposed exit date

Email is best for a paper trail. Keep it professional and polite.

Step 3: Find a Qualified Replacement Tenant

The landlord will likely require:
  • Rental application
  • Credit/background check
  • Proof of income or employment
  • References

Screen the person yourself before passing them along, because your name stays on the lease until the assignment is finalized.

Step 4: Sign a Lease Assignment Agreement

This legal document transfers your lease rights to the new tenant. It should include:
  • Names of all parties (you, landlord, new tenant)
  • Effective date of transfer
  • Statement of full release of liability
  • Agreement to original lease terms

Use a formal Lease Assignment Agreement, I can provide a free template if you’d like.

Step 5: Get Written Consent from Landlord

The transfer isn’t official until your landlord signs off. They may:
  • Approve the transfer
  • Charge a lease assignment fee
  • Reject your request (with reason)

Once approved, you are no longer responsible, the new tenant assumes full legal and financial responsibility.

Are There Any Fees for Lease Transfers?

Possibly. Common fees include:
  • Lease transfer fee ($100–$300)
  • Admin or processing fee
  • Background check fees (for new tenant)

Check your lease or local laws. In some jurisdictions, landlords can’t charge excessive fees or delay approval unfairly.

Risks and What to Avoid

  • Don’t assume you’re off the hook until you get written confirmation from the landlord.
  • Don’t skip tenant screening, if the new tenant defaults before the transfer is finalized, you may still be liable.
  • Avoid verbal agreements, always get everything in writing.

FAQs About Lease Transfers

Q: Can my landlord deny my lease transfer?
A: Yes, but they usually must have a reasonable cause (bad credit, criminal history, etc.).

Q: Do I get my security deposit back?
A: Often, the new tenant reimburses you directly. The landlord usually holds it until the lease ends.

Q: Can I partially transfer a lease (like just one roommate)?
A: No, that’s a roommate switch, not a full lease assignment. Your landlord may allow it, but it’s not a lease transfer.

Conclusion

If your life takes a turn and you can’t stay in your current rental, a lease transfer is often your best legal option. It lets you avoid expensive lease-break penalties, exit your lease responsibly, and help your landlord and future tenant in the process.

Key takeaway: With the right steps, and written consent, you can walk away from your lease without consequences.