If you rent a commercial property, and are about to sublet it or assign the lease, or if you are a tenant of a sublet premises, it’s possible that you are not fully aware of all your rights and all the problems that could arise. Courts have developed a fairly uniform way of determining whether a landlord has acted reasonably when evaluating a would-be transferee (sublessee or assignee). Assignments and Subletting in Commercial Lease Transactions By Adam M. Silverman Member, Cozen O’Connor. If a tenant makes an application for consent to assign or sublet and the landlord delays or refuses this, a tenant has two options: Proceed without consent; or Make an application to the Court for a declaration that it is entitled to proceed. Every tenant is entitled to sublet, unless the landlord has been exempt from the provision of the Residential Tenancies Act 1995 (SA) which provides for subletting [s 74]. Sub-letting A Commercial Lease. The head tenant must get written permission from the landlord before sub-letting. The best clause from a tenant’s perspective is one that grants the tenant the right to assign or sublet freely without landlord’s further consent. What additional purposes can the Subtenant make of the property? The leaseholders remedies against unreasonably refused consent to subletting are as follows:-To proceed without consent. Last updated: 6 August 2019. Some landlords allow a tenant to sublet their unit to a third party, while others do not. First off, it’s important to note that section 2(2) of the Residential Tenancies Act (RTA), which talks about subletting, is limited to tenants who rent out their units for a short period of time. INTRODUCTION In difficult economic times, a tenant may find itself with an excess of space that it does not need and cannot afford.

Any commercial space may be sublease with the consent of the landlord. First off, it’s important to note that section 2(2) of the Residential Tenancies Act (RTA), which talks about subletting, is limited to tenants who rent out their units for a short period of time. Landlords should be extra cautious with regards to ‘tenants’ who rent their property, and sublet the individual rooms to as many people as possible. Subletting. How to Evict Tenants who are Subletting without Consent. This is not advisable as it is a breach of the lease and enforcement action could be taken by the freeholder, e.g. Can the Tenant sublease a portion of the property rather than the entire property? Specialist Commercial Property Lawyers Subletting commercial property is a complicated area. Who is the Tenant? You own a commercial property and decide to rent it out to someone else. For fixed term tenancies (for example, a tenancy of six months or one year), the tenant can sublet without the consent of the landlord if subletting is not mentioned in the tenancy agreement.

If a tenant makes an application for consent to assign or sublet and the landlord delays or refuses this, a tenant has two options: Proceed without consent; or Make an application to the Court for a declaration that it is entitled to proceed. In a sub-tenancy, the head tenant takes on the full legal responsibility of a landlord. I took a tenancy on a shop within a larger unit. Picture this. An exemption applies where the landlord is a registered community housing organisation [s 74(2a)]. I did not sign any type of sublease contract. Now, this other tenant is threatening to evict me if I don’t start paying higher rent that I can’t afford.

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