When you’re looking to lease a commercial property, there are many considerations you’ll need to make. From determining the perfect location to how much of your income you want to spend on your monthly rent, there are many things you’ll need to keep in mind when searching for the perfect property. However, something you may not consider is whether or not you can sublet your lease. If this is something you’re considering, the following blog explores what you should know about these matters and why it’s in your best interest to connect with an Austin, Texas commercial leasing lawyer who can assist with any questions or concerns.
What Does It Mean to Sublet a Lease?
Subletting a lease means that you are allowing another person to utilize the space you are renting out. Essentially, you are taking over the role of the landlord, as you will collect rent from the person subletting the space to pay your rent to the landlord who owns the property. This can happen if you need a short-term solution for your commercial property, as you won’t have to take on a lease for an entire year.
However, if you cannot return to the commercial space and do not want to break your lease, you may be able to create a lease assignment. Where subletting means that you will return to the property after a short period of time, typically a week to a month, assigning a lease essentially transfers the lease out of your name and to the name of another person.
What Should I Do if I Want to Sublet the Property I Rent?
It’s important to understand that under Texas law, you cannot sublet or assign your lease without your landlord’s consent. Typically, your right to sublet or assign a lease will be explored in your lease agreement. There are typically four circumstances you may find regarding subletting – it is allowed, it is prohibited, it is allowed per your landlord’s permission, or there is no mention of subletting in the lease.
As such, when searching for a commercial property to lease, you should inquire whether or not subletting is allowed in the lease. If subletting is not in the lease, you may be able to negotiate for the inclusion of this in your lease.
It’s important to understand that your landlord has the right to restrict your ability to sublease unless otherwise stated. As such, if you proceed to sublet your commercial space, you can find yourself in legal trouble, as you can be held liable for violating the terms of your lease agreement.
There are many considerations you’ll need to keep in mind when looking for the right space to lease for your commercial business. That’s why it’s critical to connect with an experienced real estate attorney from Dillard Property Law, PLLC who can help you with these matters. Contact our team today to learn how we can assist you through these times.
