Sublease

The usual use for a sublease is to lease part of the existing leased premises to someone else. For example, a tenant with a large space may have surplus room. It makes good commercial sense to rent the excess space to another, often associated, business.

The area of the sublease premises need to be properly defined, and the term of the sublease carefully considered so that it is consistent with the head lease.

The sublessor (who is also the tenant under the head lease), will be responsible for the acts of the sublessee, and needs to ensure that there are appropriate protections in place with regards to guarantees and indemnities. In this respect, the sublessor effectively becomes the sublessor’s landlord.

Subleases seem simple, but are in fact quite complex to draft – and they must be right in order to protect the landlord, the sublessor and the sublessee.

We are experienced in advising landlords, tenants and sub-tenants. We can also seek landlord consent and/or mortgagee consent to a proposed sublease.

To speak with one of our property dispute lawyers, call us today on 1300 907 335. Alternatively, please fill out the contact form on this page and one of our lawyers will be in touch with you.

For More relevant informationAre you a Tenant or a landlord?
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Tenant

The usual use for a sublease is to lease part of the existing leased premises to someone else. For example, a tenant with a large space may have surplus floor space that is needlessly costing money.

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Landlord

When a tenant approaches you with a proposed sub-tenant, there are several things that a landlord ought to consider. Generally, as a landlord you are not obligated to accept a subtenant but will have the right to vet the proposed sublessee.

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