Lease assignment and subleasing a rental unit——whether residential or commercial——can both help you make some extra money from your unused rental property. But one is much more permanent than the other. Learn which option best suits your needs and situation by understanding the difference between subletting and assigning a lease. We'll take care of the rest. When a tenant decides to assign a lease, he is essentially giving up all his rights and responsibilities to the rental agreement and the unit to a third-party assignee. As a result, the original tenant the "assignor" will have to vacate the unit and allow the new tenant to take over all of the leased premises.
“Should I Stay or Should I Go” – Retail Lease Assignment, Sublease and Termination Considerations
Assignment and Consent to Assignment of Sublease
Create higher quality contracts in record time by searching through millions of contracts from the best law firms. Assignment or Sublease. No such assignment, subletting or other transfer shall relieve Tenant of any liability under this Lease. Consent to any such assignment, subletting or transfer shall not operate as a waiver of the necessity for consent to any subsequent assignment , subletting or transfer. No subtenant may assign its sublease without Landlord's consent. Tenant shall provide Landlord with copies of all assignments , subleases and assumption instruments.
Assignment of a Lease or Subleasing
Before the COVID pandemic, many business owners paid little attention to subleasing and assignment provisions when negotiating commercial leases. Recently, however, one of the top concerns of commercial tenants is flexibility in case they no longer need to use a portion, or all, of the leased space. In this context, subleasing and assignment provisions are key deal terms. However, the tenant enters into a subordinate lease the sublease with a subtenant regarding a portion, or all, of the leased space. After a sublease is signed, the landlord interacts with the tenant, and the tenant interacts with the subtenant.
The tenant remains liable for its obligations under the lease and is as an essential intermediary between the landlord and the subtenant. The landlord continues to be liable to the tenant for the obligations of the lease, and the tenant is responsible for the acts and omissions of its subtenant. While the sublease does not release the retail tenant from its obligations to the landlord under the lease, it benefits the tenant since the subtenant becomes obligated to the tenant to discharge the lease obligations in whole or in part. However, it also provides the tenant with an ability to ensure that tenant obligations under the lease are met. For a retail landlord, not having the ability to enforce the lease or sublease directly against the subtenant can be cumbersome.