Properly subletting office space requires a detailed understanding of the way the process works. A commercial real estate sublease is an agreement between two businesses where one business assumes the other’s leased commercial space under terms specified in a written contract approved by the landlord. Generally, the third party pays the tenant rent, while the tenant continues to pay the landlord.

Consulting the landlord: While he can’t withhold his consent without a valid reason, lessees must ensure the lease even allows for a sublet. Even if a space is vacated, it is still up to the original lessee to meet all the terms of the lease with the landlord.

Deciding on all or part: Subletting a portion of the property or home office has clear advantages; not only can a lessee reduce overheads, but he or she can also develop a useful connection with another business; subletting all of it, however, can solve significant financial problems.

Recording the agreement: A written contract by deed, witnessed and dated, is essential. The landlord may also have to approve this agreement.

Remembering accountability: If the new tenants fail to make a payment, the lessee is still responsible; lessees should stipulate within the contract that subletters remain responsible for their own desk, cubicle or space, including damage, injury, fire, etc.

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