What is the difference between "tenant of record" and "subtenant"?

The distinction between a "tenant of record" and a "subtenant" is primarily based on the relationships and agreements formed in a leasing context. The tenant of record is the individual or entity that holds the lease directly with the landlord; this means they have formal legal agreements making them responsible for the obligations laid out in that lease, such as paying rent and adhering to the terms and conditions stipulated. In contrast, a subtenant is someone who occupies the rental space but does so under the authority of the tenant of record rather than directly with the landlord. The subtenant enters into a separate agreement with the tenant of record and is typically not responsible for the original lease obligations between the tenant of record and the landlord.

This definition helps clarify the trajectory of responsibility in a leasehold situation. The tenant of record retains ultimate responsibility for ensuring that the lease terms are met, while subtenants depend on the tenant of record to meet those obligations and may have their own set of terms negotiated with that tenant. This fundamental understanding aligns precisely with the correct answer, highlighting the differing roles and responsibilities within a leasing framework.