March 18, 2020

Subletting vs. Assigning for Commercial Tenants: Which to Choose When You Want to Get Out of Your Lease | Featured on PropertyShark

Tenants of commercial or residential spaces who find that their lease no longer suits their needs have the option to sublease or assign the premises. Although these options are similar in function, the conditions differ for each.

Often, lease agreements between tenants and landlords include a section on subletting or assigning terms. That’s because tenants feel a sense of freedom when they know that they have the option to sublet or lease; then, if they’re unhappy in their space or their needs change, they can always find another occupant who can be responsible for the rent. 

However, this creates concern for some landlords because they want to ensure that the lessee doesn’t sublet or assign the apartment to unreliable or rowdy individuals. As a result, landlords may include a screening process in which they have the right to pre-approve a subletter or assignee prior to move-in. Meanwhile, some landlords don’t allow any type of subletting or assignments in order to avoid potential conflicts.

Conditions of Sublease & Assignment

Subleasing is when a tenant gives another person the right to occupy the space as long as they pay them rent. If an apartment is subleased, a sublease agreement will usually be drawn up; this means that both parties agree that the sublessee will pay rent to the sublessor, and the sublessor will be responsible to make payments to the landlord. Under this agreement, the sublessor is not fully relieved of his or her duties, and written consent by a landlord may be required.

Conversely, in an assignment, the assignor agrees to give up any and all rights to the leased premises. Depending on the wishes of the landlord, the assignor may also be relieved from any liability under the lease; if not, the assignor will still be liable. Consequently, some assignors attempt to implement a permanent assignment in order to relieve themselves of any damages or unpaid rent by the assignee.

Whether you’re a landlord, tenant or even a prospective assignee or sublessee, it might be helpful to explore the different options involved in subletting or assigning. This information could open the door to negotiations and allow for various alternatives within a lease.


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