Life happens. Job relocations, relationship changes, or simply finding a better apartment can all leave you needing to get out of a lease early. Lease trading — also called lease assignment or lease takeover — can be a win-win solution for both the current tenant and the new one. Here's how it works in Memphis.
What Is a Lease Trade?
A lease trade (or lease assignment) is when a current tenant transfers the remainder of their lease to a new tenant. The new tenant takes over all the rights and responsibilities of the original lease, including:
- Monthly rent payments
- Lease end date
- Security deposit obligations
- Building rules and pet policies
Why Trade a Lease?
For the current tenant: - Avoid early termination fees (often 2-3 months rent) - Maintain a good rental history - Help someone else get a great apartment
For the new tenant: - Often get move-in deals (current tenants may offer incentives) - Skip the waitlist at popular buildings - Shorter commitment than a full 12-month lease - Move in faster than the normal application process
How It Works in Tennessee
Tennessee law generally allows lease assignments unless the lease specifically prohibits it. Here's the typical process:
- Check your lease — Look for assignment or subletting clauses
- Notify your landlord — Most landlords require written notice and approval of the new tenant
- Find a replacement tenant — List your apartment on DowntownMemphisRentals.com or other platforms
- New tenant applies — The replacement tenant must meet the landlord's screening criteria
- Sign the assignment — All parties sign an assignment agreement
- Transfer the deposit — Handle security deposit transfer per your agreement
Tips for Success
- Start early — Give yourself 30-60 days to find a replacement
- Price it right — Offering a month's rent as incentive can speed up the process
- Be transparent — Disclose any issues with the apartment honestly
- Document everything — Get all agreements in writing
- Work with your landlord — Keeping them in the loop makes the process smoother
Common Pitfalls to Avoid
- Don't sublet without permission — This can result in eviction
- Get released in writing — Ensure the landlord releases you from the lease in writing
- Don't pay someone to take over — Be cautious of scams
- Check the new tenant — You may remain liable if they default unless you get a full release
Find Lease Trades on DowntownMemphisRentals.com
We're building tools to make lease trading easier for Memphis renters. Browse available lease takeovers or list your apartment for trade right on our platform. It's faster, safer, and more transparent than Craigslist or Facebook groups.
Whether you're looking to get out of a lease or score a great deal on a short-term rental, lease trading is a powerful tool that more Memphis renters should know about.
