Subletting is a tenant renting out the whole or a part of the place he or she has rented to another person, for rent. Which of the following situations is the best example of subletting?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Vikas pays rent for a two-room flat, and he rents out one of its rooms to a college student for ₹4,000 a month.
Subletting has three parts: the person is a tenant, he or she rents out the place he or she has rented, and the other person pays rent for it.
In Option (2) Vikas is a tenant (he pays rent for the flat), he rents out one of its rooms, and the student pays ₹4,000 a month. All three parts are present.
Why the other options are incorrect
Option (1) Mrs Rao, who owns a two-room flat, rents it out to a family for ₹9,000 a month. — Incorrect. Mrs Rao is the owner, not a tenant, so this is ordinary renting.
Option (3) Vikas pays rent for a two-room flat and lets his cousin stay in one of its rooms free of charge. — Incorrect. The cousin pays no rent, so Vikas is not renting the room out.
Option (4) Vikas gives up his rented flat, and the owner rents it out to a new tenant. — Incorrect. It is the owner, not Vikas the tenant, who rents the flat out.