Will you allow sublease?

[Sharon Zhou]

Hi everyone,

I’m about to renew the lease with my tenant, who has requested a change to allow subleasing. Our current lease, based on a template, prohibits subletting, so I’m not fully aware of the pros and cons of this arrangement. This tenant has been great, and I want to encourage them to renew, but I’m also concerned about potential risks if I permit subleasing.

Can anyone share their expertise on subleasing? Specifically, what are the worst-case scenarios I might face if I allow it?

[Tim Baldwin]

I always advise my clients not to permit subleasing except in limited situations. The main reason to prohibit subleasing is that you lose control over how the property is managed. Yes, you can enforce your lease agreement as to the tenant, but unless you require the sub-tenant to use a specific lease agreement, the tenant could use a lease agreement that does not match the way your lease agreement governs the tenancy. It is also more problematic to enforce the lease terms as to the tenant when the sub-tenant is the one in violation. In short, it adds a layer of complexity to your management of the property. Best wishes.