Commercial Sublease Rental Agreement

You can use our legal documents and resources to assist with this process. Check out our commercial sublease template to create, download and print a custom commercial sublease agreement online in minutes. While there are many similarities between commercial and residential leases, there are also some extremely important differences. These differences apply in most cases to subletting with the same force. A commercial sublease is the agreement between the subtenant and the sublandlord (the original tenant) and contains information about both parties, the original lease, the lessor`s agreement, financial liabilities (such as surety, incidentals and insurance) and any other additional terms of the lease agreement that the parties deem relevant. Landlord Consent – Most standard leases do not allow for subletting by the tenant, so the tenant must obtain the landlord`s agreement in order to enter into a sublease agreement. Since commercial leases are often long and have significant financial obligations when the contract ends prematurely, a sublease to another company is often wise. For example, if a company is going through difficult times and needs to reduce its size, it may no longer need the rented storage space. The company may have chosen to change its geographic location or perhaps it needs to increase the space needed for the business and simply no longer needs the space. Next, indicate the date of subletting that the landlord accepts. This should be considered the month, calendar date and year in space according to the words “.

a given sublease. » Enter the name of the subtenant on the sublease place to be authorized in the last space of this paragraph. There is subletting when the original owner does not rent the premises to you, but there is another nature or organization between you and the owner. That is, the owner rents to someone else, and then that person rents you. Subletting is common in 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. As a subtenant, you need to make sure that you have negotiated specific terms of the commercial sublease agreement in order to protect yourself. For example, you should have the right to pay rent directly to the landlord if the subtenant is late. This provision is often referred to as the “right to healing.” Tenants and sub-tenants must meet and draft a sublease agreement. The sublease must not go beyond the end date of the original lease. After filling in all the spaces of the agreement, you should sign them now. Let the other parties to the agreement attach their signatures. Make multiple copies and let each party provide a photocopy of the agreement.

It is important to remember that as a subleter, you are always on the hook for the contract between the owner and you. This applies regardless of whether your sub-receiver is meeting their obligations to you. For some – especially those who sublet to avoid financial hardship – this risk is enough to avoid the entire subletting process. However, if you take certain steps to protect yourself, you may be possible to reduce these risks. Also visit our Commercial Real Estate Documents section to find other related documents you might need…