A sublease occurs when the original owner does not rent the premises to you, but there is another person or entity between you and the owner. That is, the owner rents to someone else and then rents that person to you. Rentals are common in both commercial and residential real estate. However, there are a few special considerations that you should keep in mind when entering into a commercial sublease agreement. The subletting of commercial space consists of the owner`s agreement and a legal sublease contract. A sublease contract does not remove the tenancy agreement, the tenant ultimately remains responsible for the monthly rent and the property to be delivered at the end of the period without prejudice. Navigating and negotiating a commercial sublease contract can be a confusing task. You may be familiar with residential subleases, but commercial subleases have additional technical equipment and small print to watch out for. At AQUILA, we have negotiated hundreds of sublease contracts on behalf of our customers and we know it`s important that you have all the information you need before you start subletting your industry. A commercial sublease is the act of a tenant who rents premises that he currently rents to a subtenant. The tenant is required to obtain the landlord`s consent. Depending on the conditions of thought, the tenant may be limited in rent, to whom he can rent and how much he can ask for rent.
Landlord Authorization Form – Most standard tenancy agreements do not allow sublease by the tenant, which is why the tenant must obtain the landlord`s consent in order to enter into a sublease agreement. Commercial subletting can be a good option despite the potential drawbacks. Whether you are sublessor or sublessee, taking extra precautions to protect yourself can remove much of the risk from this type of transaction. In certain circumstances, your landlord may revoke you from your rental agreement at no additional cost if he has another interested in the property. Therefore, let your landlord know in advance that you plan to sublet the property. You may be lucky and be able to avoid the whole process. As with any business decision, subletting commercial space has some drawbacks.