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What should I know about subleasing?

Subleasing is a situation where a person renting or leasing commercial property rents all or a portion of the space to a third party. This situation can be quite complex, and issues can easily arise when the right information isn't made available. TheBalance.com goes over a few important details when it comes to subleasing so landlords and tenants remain protected.

What happens if there are damages

The original contract between landlord and tenant takes precedence over any agreements made between the sublessor and sublessee. Even if the sublease agreement contains language on who is responsible for damages, the original tenant will still be bound by the conditions of his or her lease. In this case, the tenant may need to cover repairs and pursue damages against the sublessee for any money owed.

Rent responsibility

Additionally, the original tenant will be responsible for remitting rent to the landlord. As a result, if the sublessee is unable to pay, the tenant must remit rent as normal and seek damages accordingly. Failure to pay to the original landlord will result in a violation of that lease, which can lead to legal issues as well as eviction.

Landlord involvement

In all cases, existing tenants should get acknowledgement in writing from the true landlord in the space. Even if the lease doesn't include language regarding subleasing, moving forward without speaking to the landlord first can result in serious issues. Along with eviction, the landlord may even be able to take legal action against the sublessor for violating the terms of the lease. Of course, some leases prohibit renting out the space to third parties, and these decrees should be followed to prevent severe legal recourse.

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