Can I Sublet My Commercial Property?

Are you considering subletting your commercial space? There are legal considerations that you need to be aware of before you can sublet a commercial property. In most cases you will find that a commercial lease will not allow for subletting. If they do, there will often be certain restrictions placed on it. With limited experience of commercial property law, it can feel like a minefield. However, with our commercial property lawyers on your side, you will feel fully informed and prepared.

In this blog post we look at if you can sublet your commercial property as a landlord and the legalities involved with doing so. Remember – if you have any queries, you can always contact our commercial property law specialists in Peterborough.

What Is Subletting?

Subletting is the name given to the process of renting out all or part of a rented property to another person for a specific period within the original lease term. This other person is known as the subtenant.

Within a subletting agreement, the original tenant will be the holder of the primary lease. They will hold this with the landlord or the property owner. They will then become a temporary landlord to the subtenant. Subletting will occur when an original tenant needs to vacate the premises on a temporary or permanent basis, however, they still wish to maintain the lease agreement.

For the process of subletting to take place consent and adherence will need to be agreed. This will include all legal issues outlines in the original lease agreement. It will also include consent and adherence to local tenancy laws too.

If you offer subletting to your tenants, as their landlord, you are allowing them to sublease their space while they are aware. They are also able to share the costs with another business.

Can You Sublet on a Commercial Lease?

Subletting is possible on a commercial lease. However, it is subject to the terms outlined in the lease agreement. It will also require your consent. Very often, we find that commercial leases will include specific clauses with regards to subletting.

These specific clauses will include conditions such as gaining the approval of the landlord. You may have to ensure that the subtenant complies with the lease terms. There are also cases when the landlord or property owner will request profits to be shared from any subletting arrangement in the property.

Need assistance with the subletting of your commercial property? Call our commercial property solicitors in Peterborough now. We will happily offer advice and guidance to support with your commercial property queries.