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Subleases can benefit both landlords and tenants

It is fairly common for businesses in Miami to lease the space they need for their operations rather than purchase commercial space, especially when a company is first getting on its feet. However, issues may arise during the course of the lease that lead the tenant, or company, to want to move out before the term of the lease has ended. When that happens, it is not unusual for the original tenant to sublet the space to another tenant, which will essentially take its place until the lease is up.

Subleases can also be useful if a business realizes it does not need all of the space it is renting and can sublet a portion of it. The obvious advantage to this is that the business will no longer need to be responsible for the full amount of rent for space it is no longer using. Business Know-How recommends that tenants review their leases carefully before entering into a sublease. The landlord may have included specific terms in the original lease about whether subletting is allowed and under what circumstances.

A sublease can also benefit a savvy landlord. If the original tenant wants to move out but another tenant is willing and able to take over the lease under identical or similar terms, it saves the landlord the time and expense of finding a new tenant on its own. It is also a relatively low-risk move according to 42Floors, since the responsibility for fulfilling the lease ultimately still lies with the original tenant and the landlord will not take a hit if the sublettor is unable to fulfill the terms of the lease.

In addition, if the landlord was smart enough to include the terms of subletting in the original lease document, it may have the right to approve the new tenant before the sublease can move forward. A landlord can also protect itself by restricting what types of businesses can move in under a sublease. Finally, if the landlord incurs any fees, such as legal fees or accounting fees, in connection with the sublease, it could request reimbursement of its costs.

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