Frequently Asked Questions
What is Flip?
Flip is the first peer-to-peer property leasing marketplace, allowing current and prospective tenants to showcase their lease or takeover an existing lease. You can use Flip on the web at http://flip.lease or with our iOS App, available at http://go.flip.lease
What does it mean to flip a lease?
1. Lease transfer or sublet that happens between two people, directly, transferred digitally.
I got a dope new job in San Fran so I'm going to flip my lease. Peace out, NYC!
My boyfriend cheated on me so I kicked him out but now I can't afford the rent. I guess I’ll flip my lease.
We’re pregnant! We need a nursery and a deck to practice our lamaze moves. Brooklyn here I come! Oh but wait, there are 5 months left on our studio in Soho - let’s flip it!
I didn’t know you could do this. How does it work?
The key to releasing your lease is finding a new tenant who wants to live there and is as qualified as you are. Legally, your landlord probably has an obligation to mitigate damages caused by your wish to move on. (Yes this varies by location, check here for details on that).
Mitigating damages means that he or she has to make a reasonable effort to find a new tenant before making you pay up for the rest of the lease term. If you request to sublet or assign to someone else your landlord cannot deny your request “unreasonably.” If you can demonstrate that the new tenant is as qualified as you then you can also demonstrate that any refusal is unreasonable.
Up until now it’s been a pain to find a new qualified tenant. Now it’s easy. And it’s a win-win: the landlord keeps vacancy low and you are free.
How can my lease be an asset?
While you, the tenant, don’t own the actual building, your lease gives you exclusive ownership and use of the property for a set period of time. By signing a lease, you’ve created something known as “leasehold interest.” Technically, your leasehold interest could be either an asset or a liability - depending on the situation.
What is a "lease price"?
Ahhh...glad you asked. Everything is about access these days. Access is valuable. The lease price is the amount of money that you (the leaseholder) choose to charge for access to your lease.
You can’t always earn money from flipping your lease, but go ahead and choose a price to see how much interest you get. If you get no interest, lower your price or turn it into a reward.
What is a "lease reward"?
Take this scenario: you have 6 months left on your lease and a job at 20% higher pay starting next month across the country. You’re on the hook for 3 months rent if you don’t find a replacement to cover the rent. In this case, your leasehold interest is actually more of a liability. Putting a reward on your lease incentivizes another renter to take over your lease or sublet from you.
What does “qualified” mean?
The law doesn’t stipulate what factors determine a prospective tenant to be qualified versus not qualified. Your best best is to find someone who is as qualified as you in terms of credit score and income.
That’s different in every city and state, but generally is related to someone’s credit score and income.
What’s a 30-day guarantee?
Our 30 day guarantee means that we'll get you a qualified renter to replace you within 30 days. We’ll visit your space, help you make it as amazing as possible and take photos that will help you flip faster. We’ll also drive a lot more traffic to your listing.
What if I want to do a sublet instead of a lease reassignment?
If your building owner refuses to provide you with consent for a sublet, you can still do so. If they refuse to provide you with consent for a lease reassignment, you have the right to cancel the lease.
When should I tell my property management company that I'm using Flip to sell my lease?
This is entirely up to you. If your building is signed up with Flip, then they will expect you to deliver them a replacement tenant in the event that you need to exit your lease.
If not, you may find it easier to tell them that you need to leave at the same time as you deliver a qualified replacement.
What actually happens when I take over a lease?
First we get you pre-qualified, if you’re not already. Then, the lease seller forwards your qualification package to the property management company. Once you are approved, you can either ask for the lease to get reassigned to you or for an entirely new lease.
What’s the difference between a lease reassignment and a sublet?
When you’re on a lease you have something called a "leasehold interest":
“the Claim or right to enjoy the exclusive possession and use of an asset or property for a stated definite period, as created by a written lease. A long-term lease interest is a valuable asset in its own right which can be traded or mortgaged as a physical asset.”
To assign a lease means that the tenant is transferring the entire leasehold interest to someone else and is permanently vacating the premises (with all their stuff, and is no longer responsible for the rent in any way).
In contrast, to sublet means that the tenant is temporarily leaving the apartment and therefore is transferring less than the entire leasehold interest to you.