Legal Definitions - sandwich lease

Definition: A sandwich lease is a type of lease where the lessee subleases the property to a third party for more rent than under the original lease.

Example: John leases a property from Jane for $1000 per month. John then subleases the same property to Mike for $1500 per month. This is a sandwich lease.

Explanation: In a sandwich lease, the lessee becomes a middleman between the lessor and the sublessee. The lessee pays rent to the lessor and then charges a higher rent to the sublessee. The lessee makes a profit from the difference between the two rents. However, the lessee is responsible for any damages or issues that arise from the sublessee's use of the property.