Why You Should Document That Sublease With A Commercial Sublease Agreement

The commercial sublease takes effect when the lessee in a lease allows a third party

to assign and in effect makes the old lessee the sublessor and the new lessee the subtenant. This would imply that the owner of commercial property may lease out the entire property to a management company who further finds tenants for each individual unit and gives them control. It may be noted that certain leases do not allow subleasing of the property.

Generally, the commercial sublease is entered into on a particular date between the tenant and a subtenant who agree that the tenant is the lessor of the property whose address is specified in the agreement and that the tenant is desirous of subletting the portion of the property to a subtenant who is desirous of leasing the property from the tenant, subject to the terms and conditions of the commercial sublease agreement.

The agreement would set out the rental period that would continue on a monthly basis and if the subtenant wishes to discontinue the rental agreement, then the subtenant needs to give a certain amount of notice in writing to terminate the rental agreement. The commercial sublease agreement needs to specify the amount of rent to be paid per month and the days on which the rent is to be paid during the term of the sublease and in case of late payments, any penalties that would incur.

In case of late payments, the tenant may specify in the commercial sublease agreement that the tenant can impose a late charge and these charges are due and payable along with the same month's rent. Also, in case the rent is paid by check that is improperly funded there would be a charge on the tenant to pay the returned check fee for each instance of returned checks.

The subtenant may agree to use and occupy the property for specified usage and all permits and licenses that are required for such use shall be procured at the expense of the subtenant, who agrees to use the leased property in a careful and safe and proper manner and agree not to use or permit the use of the property for any unlawful activities as laid down by local and national laws. The subtenant shall acknowledge that all improvements required for the property to be in good order and repair shall be borne by the subtenant and at all times, they are bound to maintain the property in good and safe condition, which includes all items that are specified in the commercial sublease agreement.

If the property requires alterations, additions or improvements which are deemed by the subtenant as being necessary for converting the premises to his or her intended use then this must be approved in advance by the tenant and that any expenses incurred on such alterations, improvements or additions shall be borne by the subtenant and would be performed in good faith and will remain with the property at the end of the sublease agreement. In addition, the subtenant shall adhere with all statues, ordinances and requirements of every municipal, state and federal authorities that are in force at the time or which may become in force in future and which pertain to the property in use by the subtenant.

Also, the subtenant is not permitted to assign the sublease agreement without obtaining the written consent of the tenant. The subtenant shall also be liable to pay for utilities and shall allow the tenant to inspect and enter the property at reasonable time and upon receiving adequate notice. There may also be many other terms and conditions that will be agreed to by both parties, depending on how the property is to be used.

The commercial sublease agreement is an important document that requires careful attention when signing and towards this end it may be more advisable to buy pre-defined agreement documents that entail less effort, money and time in executing.

With the ready availability of these documents on the market it should not pose any problem in finding one that meets the essential requirements of a good commercial sublease and which can also be tailored to incorporate all necessary clauses and terms and conditions. It would certainly prove to be value for money since the cost is low and the utility high.

by: Wade Anderson

POST COMMENT

How to Book Commercials - What's a BUTTON? Choosing The Top Commercial Lift Specialist The World According to Commercials (1) Commercial European shale a reality in the year 2020? Commercial Property for Sale in Alabama – Lease Agreements Call The Pros To Replace Your Commercial Roof How To Make A Worm Farm- Can Commercial Worm Farming Earn You A Respectable Living? Importance Of Slip Resistant Commercial Flooring Industial and Commercial Air Handling Units Clean Floors for Commercial Growth