California Real Estate Practice Exam

By what method does a tenant rent out his apartment if he has a leasehold interest in the apartment?

1. Assign

2. Sublet/Sublease

3. Suffrage

4. Transfer

The correct answer is: Assign

The tenant rents out his apartment through the sublet or sublease method when he holds a leasehold interest in the apartment. This allows the original tenant to temporarily transfer some or all of his rights under the lease to another party, while still retaining the leasehold and overall responsibility to the landlord. This practice is beneficial for tenants who wish to retain their rental rights while accommodating personal circumstances, such as traveling or needing to relocate for a job. Importantly, whether a tenant can sublet often depends on the terms of the original lease agreement, which may require party permissions or impose restrictions. The concept of assignment also exists; however, it implies a complete transfer of the tenant's interests to a new tenant. In the context of this question, subletting is more accurate for someone who wants to rent out their apartment while maintaining their leasehold interest.