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What Is A Sublease?
A sublease, by legal definition, is a contract between a tenant and a sub-tenant to rent a residential or commercial space for a defined period. In a sublease, the property owner rents to a tenant who wants to vacate the premises without breaking any lease agreements and still pay rent. The tenant can rent the property to a sub-tenant under a sublease agreement.
Not all property owners permit subleases between tenants and sub-tenants. Speak with real estate lawyers in your state for specific legal advice and guidance.
Here is another article on what a sublease is .
How A Sublease Works
Subleases work by allowing an original tenant to rent a property or piece of land to a renter known as the sub-tenant. The sub-tenant addresses all property issues with the original tenant and not the property owner. Sublease laws vary from state-to-state as well.
Who Is Responsible For A Sublease?
The person who is responsible for a sublease is the tenant. Since the tenant is subleasing the property to a sub-tenant, the tenant will deal with them directly. The property owner or manager will not have any legal dealings with the sub-tenant.
As such, it is critical for tenants to recognize the amount of risk they are taking on when subleasing a property, apartment, or land. Failing to select the right sub-tenant or drafting an inadequate sublease agreement can result in major financial and legal issues. You should also consider the legality of subleases in your city, county, or state before negotiating an agreement with a prospective sub-tenant.
Are Subleases Legal?
Yes, subleases are legal. If your existing lease agreement does not specifically prohibit sublease, then it is generally permitted by law.
However, many laws and lease agreements require that you obtain your property manager’s written approval and consent for you to sublease your property. Specific state laws may also allow you to sublease your space, even if your property manager denies your request.
Other legal issues associated with subleases include:
- Subleasing could be illegal in your location
- Your lease may expressly prohibit the use of a sublease
- The sub-tenant damaging or destroying the leased property
- Property damage can exceed the amount of the original security deposit
- Issues can occur when there are numerous parties involved in the sublease
- Poorly written sublease agreements can cause more harm than good
- Problems most often arise when the sub-lessee stops paying rent
When considering subleasing your rental, make sure you carefully consider all of the facts and circumstances. Working with real estate lawyers to help you gain compliance or negotiate with your landlord. Due to the risk level involved with subleases, it is wise to work with a legal professional throughout the entire course of your relationship with a sub-tenant.
Here is an article on the pros and cons of a sublease .
Sublease agreements are the contracts that govern the relationship between the original tenant and a sub-tenant. There are specific considerations that you should be making when writing and executing sublease agreements, including key terms and specialized clauses.
Key Terms Of A Sublease Agreement
It is crucial to incorporate the key terms of a sublease agreement for it to be legally binding. Every contract is unique. However, there are commonalities among each document of which you should be aware.
These are the key terms of a sublease agreement:
- Location and description of the property
- Name and address of the original tenant
- Name and address of the sub-tenant
- The start and end dates of the sublease
- The terms and conditions of the original lease
- The amount of rent due
- The frequency of rent and payment options
- Acknowledgements of the parties
In addition to key terms, there are also sublease clauses that will further protect your financial and legal rights.
Sublease clauses are used when complicated agreements are involved. There are specific clauses that property owners can use to protect profits, income channels, and property values. These critical sublease clauses will protect your legal and financial interests.
Examples of sublease clauses include:
- Assuming the lease responsibility
- Protecting intellectual property (IP)
- Right of Recapture
- Non-Compete Clauses
- Right to Reject a Subtenants
Unlike residential terms, commercial transactions may require specific legal and industry knowledge to draft an adequate agreement. Subleases can be great sources of income for these types of entities. However, you should always speak with real estate lawyers for information regarding the transaction-specific to your situation.
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Types of Subleases
There are different types of subleases, including a sublet. Leases are not the same as subleases since they shift the legal and financial responsibility to another party.
These are the differences between a sublease vs. lease and a sublease vs. sublet:
Sublease vs. Lease
Leases are a type of rental lease agreement between a landlord and a tenant. They can be residential or commercial leases . In contrast, a sublease occurs between a tenant and a third-party individual who will pay rent and live in the unit for a partial or total remainder of the original rental agreement.
When drafting a lease, ensure you use the right template. For example, a residential lease should use a residential lease agreement template. Property lawyers can help you select the right document to use.
Here is an article about a sublease vs. a lease .
Sublease vs. Sublet
Sublets, also known as relets, allow new renters to assume responsibility for a lease directly with the property owner or manager. Under a sublet, the landlord handles tenancy issues. Use a sublet agreement when writing a contract for a sublet.
A sublease is when the new renter deals directly with the tenant. Under a sublease, the renter acts as the property manager. Use a sublease agreement when writing a contract to legally manage this relationship.
Get Help with a Sublease Agreement
When you need to get help with a sublease agreement, hire real estate lawyers . Their rates are generally reasonable and will avoid all legal mistakes. In addition to negotiation on behalf of your interests when drafting a sublease agreement, they can provide many other vital services.
Real estate lawyers will help you with a sublease agreement in the following ways:
- Review the sublease agreement and supplementation documentation
- Offer legal advice and guidance when it comes to inspection matters
- Avoid critical deadlines and notification dates
- Work with the parties to get the document signed
- Ensure that all elements of the sublease agreement meet federal and state laws
- Explain clients’ legal rights using simple terms
Subleases can involve a significant amount of paperwork, especially for commercial transactions. The negotiation process may also take several weeks or months to finalize. However, real estate lawyers will interpret any legal definition for you while discussing how it applies to your situation.
Other legal issues may arise during the sublease agreement’s signing. While some are easy to resolve, there are others that may require a well-defined legal strategy. Real estate lawyers will advise you about the opportunities and limitations associated with key decisions and reviewing any potential issues that could arise in the future.
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Meet some of our Sublease Lawyers
Terry Brennan is an experienced corporate, intellectual property and emerging company transactions attorney who has been a partner at two national Wall Street law firms and a trusted corporate counsel. He focuses on providing practical, cost-efficient and creative legal advice to entrepreneurs, established enterprises and investors for business, corporate finance, intellectual property and technology transactions. As a partner at prominent law firms, Terry's work centered around financing, mergers and acquisitions, joint ventures, securities transactions, outsourcing and structuring of business entities to protect, license, finance and commercialize technology, manufacturing, digital media, intellectual property, entertainment and financial assets. As the General Counsel of IBAX Healthcare Systems, Terry was responsible for all legal and related business matters including health information systems licensing agreements, merger and acquisitions, product development and regulatory issues, contract administration, and litigation. Terry is a graduate of the Georgetown University Law Center, where he was an Editor of the law review. He is active in a number of economic development, entrepreneurial accelerators, veterans and civic organizations in Florida and New York.
I'm a Washington-licensed lawyer specializing in trademark practice and with an extensive trademark education and academic background. I currently work with domestic and international businesses seeking trademark protection in the U.S. by conducting trademark searches, providing legal advice, submitting USPTO applications, and preparing responses to office actions. I'm passionate about trademark law and always looking forward to helping small and medium businesses promote their value by having a registered federal trademark. If you have questions or concerns about trademark/copyright/IP licensing and require legal advice, feel free to contact me so we can have a first chat.
Mr. Pomeranz serves as the principal of Pomeranz Law PLLC, a boutique law firm representing clients across myriad industries and verticals. Before founding the firm, Mr. Pomeranz served as Senior Vice President, Legal & Compliance and General Counsel of Mortgage Connect, LP in 2017. Mr. Pomeranz also served as Counsel, Transactions for Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) beginning in 2013, and was based in the company’s C-Suite in Luxembourg City, Luxembourg. Mr. Pomeranz began his career with Mainline Information Systems, Inc. as an in-house attorney.
I have 10 years experience providing general counsel, in the form practical and timely legal advice, under strict deadlines to individuals and various business unit stakeholders, balancing commercial needs with legal concerns at large corporations and start-ups. I am skilled at reviewing, analyzing, drafting and negotiating commercial and government contracts globally for the procurement and sale of services and goods. I also help clients ensure compliance with regulations (including data privacy), laws and contractual obligations and protect, enforce and exploit intellectual property rights and support in the development of IP strategy. I am a Certified Information Privacy Professional/United States (CIPP/US) licensed by the IAPP - International Association of Privacy Professionals.
Over 15 year experience drafting, reviewing and negotiating contracts both as in-house counsel and in law firms, including my own law firm.
Rinky S. Parwani began her career practicing law in Beverly Hills, California handling high profile complex litigation and entertainment law matters. Later, her practice turned transactional to Lake Tahoe, California with a focus on business startups, trademarks, real estate resort development and government law. After leaving California, she also served as in-house counsel for a major lending corporation headquartered in Des Moines, Iowa as well as a Senior Vice President of Compliance for a fortune 500 mortgage operation in Dallas, Texas prior to opening Parwani Law, P.A. in Tampa, Florida. She has represented various sophisticated individual, government and corporate clients and counseled in a variety of litigation and corporate matters throughout her career. Ms. Parwani also has prior experience with state and federal consumer lending laws for unsecured credit cards, revolving credit, secured loans, retail credit, sales finance and mortgage loans. She also has served as a special magistrate and legal counsel for numerous Florida County Value Adjustment Boards. Her practice varies significantly from unique federal and state litigation cases to transactional matters. Born and raised in Des Moines, Iowa, Ms. Parwani worked in private accounting for several years prior to law school. Her background includes a Certified Public Accountant (CPA) certificate from Iowa (currently the license is inactive) and a Certified Management Accountant (CMA) designation (currently the designation is inactive). Ms. Parwani or the firm is currently a member of the following organizations: Hillsborough County Bar Association, American Bar Association, Tampa Bay Bankruptcy Bar Association, National Association of Consumer Bankruptcy Attorneys, and the American Immigration Lawyers Association. She is a Fellow of the American Bar Association. Ms. Parwani is a frequent volunteer for Fox Channel 13 Tampa Bay Ask-A-Lawyer. She has published an article entitled "Advising Your Client in Foreclosure" in the Stetson Law Review, Volume 41, No. 3, Spring 2012 Foreclosure Symposium Edition. She is a frequent continuing legal education speaker and has also taught bankruptcy seminars for the American Bar Association and Amstar Litigation. She was commissioned by the Governor of Kentucky as a Kentucky Colonel. In addition, she teaches Immigration Law, Bankruptcy Law and Legal Research and Writing as an adjunct faculty instructor at the Hillsborough Community College Ybor campus in the paralegal studies program.
Possesses extensive experience in the areas of civil and transactional law, as well as commercial litigation and have been in practice since 1998. I addition I have done numerous blue sky and SEC exempt stock sales, mergers, conversions from corporations to limited liability company, and asset purchases. I have worked in commercial litigation, corporate and transactional law, intellectual property and bankruptcy. In recent years I have expanded my practice to include family law, personal injury, medical malpractice, and wrongful death.