A clear lease sets you and your lessees up for a frictionfree tenancy and spells out exactly what your tenant can and cannot do, including subleasing the unit. With permission and agreement with the landlord Rent the property to the new tenant with a new lease in place at the higher rent.Responsibilities: The sublessee is responsible for paying rent to the original tenant (sublessor) as stipulated in the sublease agreement. You will generally use Schedule E of form 1040 to report your rental income and expenses. Here's a look at where each candidate stands on housing policy and some impacts each could have on real estate investors. Talk to an eviction attorney. Should you allow tenants to sublease? This article covers how subleasing works and what the risks are for landlords.