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When you rent out a commercial property, your lease should outline everything that you are allowed to do with it. The agreement you signed should mention lease assignments and subletting too. If you want to turn over your space to another renter, is that allowed? Our Long Island, NY commercial landlord-tenant dispute lawyers can tell you what your options are and how local laws apply to such arrangements.

Are Lease Assignments and Subletting Allowed on Commercial Properties?

Yes, lease assignments and subletting are allowed on commercial property if your lease has a provision about them. Your lease should tell you whether or not you can sublet or assign the space to someone else. Usually, this will require landlord approval. In some cases, the provision actually won’t require any approval from the landlord at all. You can just find a sub-tenant and make your own arrangements.

When landlords require approval of lease assignments and subletting, they must be informed of their tenant’s desire to make such an arrangement. When it comes to residential leases, landlords often have to have a “reasonable” objection to the sub-tenant. It could be financial in nature, like a bad credit score, or anything else that seems rational enough. When it comes to commercial leases, a landlord actually does not need to have a reasonable objection. They can decline a sub-tenant for any reason.

If your commercial lease does not mention subletting or assignments, then such agreements are unlikely to be an option for you. This is why you should have a lawyer on your side when you negotiate rental contracts.

What Are the Differences Between Lease Assignments and Subletting Agreements?

It’s also important to note the difference between lease assignments and subletting agreements. Both give someone else access to your space, but one kind of agreement means that you are leaving that rental property.

Subletting means turning over a space to someone temporarily. They would pay rent and occupy the property, but you would still ultimately be responsible for the property you agreed to rent. You would likely be on the hook if anything was damaged, for example.

Assigning a lease means signing over the space to someone else. They are agreeing to be the tenant now and you are essentially exiting your agreement. If this new tenant is approved by the landlord, then your obligations are all done.

When Should I Hire a Lawyer?

Having a lawyer with you when you negotiate your lease can be helpful. You could potentially add a clause that says that your landlord cannot withhold permission for sublets or assignments for unreasonable reasons. A lawyer may also be able to help if you and your landlord are struggling to agree about sublease or assignment arrangements.

Schedule a Meeting With Our Experienced Real Estate Attorneys

If you and your landlord are having a dispute, bring in some backup. Our seasoned real estate lawyers can help you figure out the best way to resolve your conflict. Contact David A. Gallo & Associates LLP to schedule your consultation today.