Subleasing a property is one way for lessees to follow through on a lease agreement if their situation has changed. Unlike subletting, subleasing is a process where you have an agreement directly with the lessee and they retain their existing lease.
There are some things to consider to protect your interests if you will be subleasing someone’s property.
Research the lessee
Check with the landlord about the lessee’s account history. Ensure that they have a reliable, consistent payment history that shows responsibility. Remember that you will be dependent upon the lessee’s responsibility to pay the lease agreement, so only sublease if you are confident in the lessee.
Include a mandatory notification clause
A sublease should include a clause that requires notification anytime the landlord issues a default notice to the lessee. Notification to the sublessee gives the opportunity to resolve the problem even if the original lessee cannot.
Consider a direct relationship with the landlord
You can include a clause in any sublease agreement where you establish a direct relationship with the landlord and make payments directly. This gives you peace of mind that you are in control of your own situation and can negotiate directly with the landlord.
Ask for a copy of the master record
The master record of the lease is the original lease document between the landlord and the lessee. Obtain a copy so you know the terms and what the landlord permits on the property.
Subleasing a property gives you the opportunity to get the facility you need when the existing tenant is unable to sustain it. These tips will help you protect your interests.