Can I sublet my commercial lease?

Most commercial leases forbid subletting. There is a good reason for that. Before you consider subletting, you should carefully check your own head lease to make sure you are allowed to sub let. Even if the original lease prevents subletting, a sublease may be negotiated if all parties agree.

What is a commercial sublet?

A commercial sublease is an agreement between a tenant currently leasing a property, a new tenant looking for space, and the property owner. When you sublease your space you are the sublessor (or sublandlord) and your new tenant is the sublessee (or subtenant).

Does subletting affect business rates?

If you decide to move premises, it’s possible that your business rates will change. It’s your responsibility to notify the Valuation Office Agency if this occurs. The same applies if you: Sublet part of the property to another business.

Who is the landlord in a sublet?

The owner of the property is the head landlord. But the tenant is your immediate landlord and this is who your agreement is with. You have rights as a subtenant even if the head landlord doesn’t know you live there or wants you to leave.

Do landlords let you sublet?

In most cases, subletting is legal if the tenant obtains the landlords permission to let out the rental property. However, if the tenant sublets without written permission, they could come into legal difficulties.

Is subletting a good idea?

A sublease can be a great option for shorter-term stays; most leases are for a year, so if you’re just looking for a place to stay over the summer, a sublet can be perfect, especially in college towns. You’re not obliged to stay once the original lease is up, though it is often an option.

Who pays business tenant or landlord?

The occupier of the premises is responsible for paying business rates. This will usually be the owner or the tenant. Sometimes the landlord of the property charges the occupier a rent that also includes an amount for the business rates.

Do I have to pay business rates if I rent an office?

In the case of occupied property, the person or company occupying it is liable to pay the rate. Sometimes a landlord may charge an occupier a rent which is inclusive of rates. If you have a business agreement with a third party (such as your landlord) to pay your rates, you are still responsible for payment.

What is a commercial lease?

Commercial leases are generally subject to much more negotiation between the business owners and the landlord, since businesses often need special features in their spaces, and landlords are often eager for tenants and willing to extend special offers.

What should you look for when signing a commercial lease?

Before you approach a landlord, you should understand how commercial leases differ from the more common residential variety, and before you sign anything, make sure you understand and agree with the basic terms of the lease, such as the amount of rent, the length of the lease and the configuration of the physical space.

Can you break a commercial lease agreement?

Many commercial leases are not based on a standard form or agreement; each commercial lease is customized to the landlord’s needs. As a result, you need to carefully examine every commercial lease agreement offered to you. Long-term and binding. You cannot easily break or change a commercial lease.

What are the consumer protection laws for a commercial lease?

Commercial leases are not subject to most consumer protection laws that govern residential leases — for example, there are no caps on security deposits or rules protecting a tenant’s privacy.