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Sublease or Assign? What's the Difference?

“Assigning” and “subletting” may sound like similar terms, but they are vastly different and serve a different function.

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Sublease and Assignment

In an Assignment of Lease - the tenant steps out of the Lease and a new third party called the Assignee steps into their shoes. The Assignee takes over the rights and responsibilities of the lease.

In a Sublease - The original tenant (often referred to as the "head-tenant") remains and sublets the whole or a portion of the premises to a third party called the sub-tenant. The head-tenant remains responsible to the Landlord and and the sub-tenant is responsible to the head-tenant.

If you want to sublease or assign - you need to:

  • check your lease to see if it is allowed
  • ask for the Landlords permission in writing.

For more in depth info about the difference between assigning or subleasing go to - the difference between assigning and subletting a commercial lease.

Other Resources on Commercial Subleasing or Assignment

How to provide an Option to a Sub Tenant

SubleaseSubleasing is quite common but how should you provide an option for renewal in your sublease? We look at the issues involved and the steps you should take.

Landlord’s rights and obligations when a tenant seeks to sublet or assign a Retail Lease

Retail Lease Assign or SubleaseRetail leasing is quite regulated and if your tenant asks to assign the lease or sublease the premises there are particular actions you should take. We've put together a handy table that breaks down the Landlords obligation for each Australian state.

Is AirBnB considered a sub-lease?

Is airbnb a sublease?As a landlord, you invest time in screening suitable tenants, decide who is best placed to look after your investment property and subsequently enter into a lease agreement. However, with the rise of the sharing economy, you may be unaware of how your property is actually being used. If your tenants sub-let the property without your knowledge or permission, do you have any rights to reclaim possession?

The difference between assigning and subletting

Assign or Sublet?Assigning and subletting a lease are two very different procedures. We look at the differences. “Assigning” and “subletting” may sound like interchangeable terms. But as we shall see, they are vastly different. If you have space in your leased commercial premises (either all or part) that you are thinking of assigning or subletting to another, you should make yourself familiar with the legal effects, the pros and the cons of both assigning and subletting.



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