Sub-Tenant

When a tenant sublets, he usually needs to obtain the landlord's prior written consent or licence to do so. A business lease usually contains a term preventing the tenant sub-letting or parting with possession of the property by allowing a third party to occupy all or part of the premises. This absolute prohibition can be subject to subletting being permitted with the landlord's specific consent. For subletting, the landlord's greatest concern will be to ensure that the sub-tenant has no greater security that the tenant himself - for example that he does not obtain the tenant's statutory renewal rights. Since the existing tenant remains directly liable under the lease for rent, the landlord ought not to be particularly concerned over the credit worthiness of the sub-tenant. In any event the landlord will charge the tenant for his legal and other costs in considering and granting a licence.