subleases

A sublease is an arrangement in which a tenant (the sublessor) rents out all or part of a leased premises to another party (the sublessee) for part or all of the remaining term. The master lease remains in effect, and the original tenant continues to be responsible to the landlord for rent and compliance under the lease.

Key terms include the sublease term, rent amount, security deposit, permitted use, and any conditions on alterations or access. The sublessee pays rent to the sublessor; the sublessor remains liable to the landlord for the full rent and performance of the lease, subject to the sublease agreement.

Consent and compliance: In many cases the landlord’s written consent is required to sublease. Subleasing without consent can breach the master lease and expose the sublessor to eviction or damages. Some leases or laws place limits on subleasing or require notices.

Liability and remedies: If the sublessee defaults, the sublessor may pursue remedies against the sublessee and remain liable to the landlord. If the master lease is terminated for any reason, the sublease generally terminates as well. Sublessors should ensure clear remedies and notice provisions in the sublease.

Practical considerations: Review the master lease for sublease restrictions, term compatibility, and rent escalations. Consider insurance requirements, damage or casualty provisions, and the security deposit handling. Distinguish between subleasing and assignment; assignments transfer the tenant’s remaining rights and obligations to the new tenant, typically with landlord consent.