Is subletting commercial property legal?
While sub-letting itself is not illegal in India, it may require a lot of care for both the tenant who is sub-leasing, as well as for the company that is taking the premises on sub-lease.
Is sub lease allowed?
However, under Rent Control Acts of almost all the States sub-letting is prohibited unless it is with the consent of the landlord, mostly in writing. Sub-letting (or letting) is not defined under Rent Control Acts, hence, general definition of lease given under Section 105 of Transfer of Property Act can be adopted.
What happens if a Subletter doesn’t pay rent?
If the subtenant fails to pay rent, it’s up to the tenant to make sure full rent is still paid to the landlord. Failing to do so can result in eviction of the tenant by the landlord.
How does a sub lease work?
Subleasing occurs when the tenant transfers a part of their legal tenancy to a third party as a new tenant. That means that if a new subtenant does not pay rent for three months, the original tenant that subleased the property is liable to the landlord for the overdue rent amount and any late fees.
Can a leased property be sub leased?
If the agreement allows the tenant to sublease it, the tenant can sub lease portion of property to third party. When a tenant whose name is on the lease rents a room, a portion of the property, or all of the property to another, it is referred to as subleasing (or subletting).
Is subletting cheaper than renting?
Subletting a room or apartment on Caretaker is cheaper than the average rent in every neighborhood and city we researched.
Can a tenant sublease part of a commercial property?
If you are a tenant in a commercial property, you may be able to sublease part of your property to a third party. This can be a good idea if your business is downsizing and you have more space, as it allows extra cash flow to help with the rent.
What is the purpose of a commercial sublease agreement?
Document Preview About this Document What is a Commercial Sublease Agreement? A Commercial Sublease is a contract used to rent commercial property from a tenant rather than from a landlord or owner.
What does it mean to sub let a property?
A sub-lease is when a Tenant decides to grant a lease (a ‘sub-lease’) of the property to another party (the ‘Sub-Tenant’) out of their lease. The sub-lease must be granted for a period of time less than the lease out of which it is granted.
Which is better sublease space or exclusive lease?
Always try to negotiate a better deal. Subleasing commercial space can be very advantageous for a smaller business or one that is just starting out. Often, sublease space is more affordable than a standard commercial lease, and it may be easier to qualify for a sublease than for an exclusive lease.