Subleasing is an important concept under residential and commercial leasing, but it’s often misunderstood or confused with other aspects of leasing. Subleasing involves the rental of all or part of a leased space by the tenant to another party. The tenant leasing the space is known as the sublessor, while the party who leases or rents the space from him is the sublessee.
In other words, subleasing is when someone who already holds a lease on a property rents that property out to another person, either partially or in full. The sublessor still retains the rights and responsibilities outlined in the original lease agreement.
Types of Subleases
Subleases are typically divided into two categories: partial subleases and full subleases. A partial sublease is where the sublessor rents out a portion of the leased property to the sublessee, while they still use the other portion. This type of sublease is usually the most flexible as it allows both parties to inhabit the same property in different capacities.
A full sublease is where the sublessor transfers all of the rights and responsibilities of the lease agreement to the sublessee. In this type of sublease, the original tenant (the sublessor) no longer retains the rights and obligations outlined in the original lease agreement as they’ve been completely transferred to the sublessee.
Legal Considerations
The law generally grants the tenant or original lessee (the sublessor) the right to sublease the leased premises. However, a tenant needs to review the language of the lease to determine whether such right is granted explicitly or precluded. Generally, a tenant obtaining permission from the landlord/owner granting the permission to sublease is recommended.
Before the sublessor can legally sublease the property, they must obtain permission from the landlord. Depending on the terms of the lease, this can be a simple verbal agreement or a long and detailed written contract. It is essential to fully understand the details of the agreement so that the tenant does not become liable for any missteps made by the sublessee.
Prospective sublessors need to be aware of a few legal details. Generally speaking, the sublessor must remain responsible for the property and occupants, even when the tenant is no longer occupying the space. Additionally, the sublessee must abide by all of the rules and regulations outlined in the original lease agreement.
Conclusion
Subleasing is an important concept for both residential and commercial leases. Subleases should be carefully reviewed to ensure that both the sublessor and the sublessee are in agreement and that they both understand their obligations. If you’re thinking of subleasing, it’s important to review the original lease agreement and obtain permission from the landlord in order to avoid any legal issues.