How to Get Out of a Commercial Lease via Subletting
If you need to get out of a commercial lease, subletting the space can be one option to consider. Here are the steps to follow: Review your lease agreement: Before subletting your commercial space, it's important to review your lease agreement to see if it allows for subleasing. Some landlords may not permit subleasing, while others may require that you get their approval first.
If you're not sure whether your lease allows for sublet or not, consult a commercial real estate broker or an attorney. Determine the rental rate: Decide on the rental rate that you want to charge for your commercial space. Take into consideration market rates for similar spaces in your area and what it will cost you to maintain the space. You may want to consult with a knowledgeable commercial real estate broker as well. Screen potential subtenants: To ensure that you're subletting your space to a responsible party, it's important to screen potential subtenants. This can include checking references, conducting a credit check, and verifying that they have the financial means to pay rent. Prepare a sublease agreement: Once you have found a suitable subtenant, it's important to prepare a written sublease agreement that outlines the terms and conditions of the sublease. The agreement should include the rental rate, the length of the sublease, and the responsibilities of both parties. Oftentimes to make it easier and more palatable for the landlord, they may allow you to use their agreement for the new tenant.
Notify your landlord: If your lease agreement requires you to notify your landlord about the sublease, make sure to do so in writing. Provide your landlord with a copy of the sublease agreement and any other relevant information. Collect rent and manage the space: As the sublessor, you are responsible for collecting rent from the subtenant and managing the space. This can include handling maintenance issues, responding to tenant complaints, and ensuring that the subtenant is following the terms of the sublease agreement. Again, everything is real estate is negotiable, your landlord may take over these tasks for you. You may be able to terminate the original lease: If the sublease agreement covers the remaining term of your original lease, you can then terminate the original lease. However, it's important to follow the terms of your lease agreement and provide your landlord with proper notice, if required. Subletting your commercial space can be a good option if you need to get out of a lease, but it's important to carefully consider the terms and conditions of the sublease agreement to ensure that both you and the subtenant are protected. If you have any doubts or questions, it may be helpful to consult with a real estate attorney for guidance.