Do I need a Sublease Agreement?

Taking on a sub-tenant can be a source of additional income for your business. However, it can also expose your business to risk involved where a third party can cause damage to the property. It’s important to clearly outline the duties and obligations of any sub-tenants. 

A Sublease Agreement can work to ensure that they comply with the main lease, and to prevent disputes in the future, such as who bears the cost of repairs.

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What steps can I take to protect my business?

Sub-letting a commercial property can be a complex arrangement which may involve risk to your business. We can work with you to ensure that your Sublease agreement reflects the obligations and requirements of the main lease.

We’ll also ensure that key provisions are included which protect your business from any damage that the sub-tenant may cause to the property. If you require consent from your landlord, we can also assist you in preparing a Deed of Consent to formally document their approval.

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Frequently Asked Questions

Your Commercial Lease will usually state whether you have the right to sub-let to others and if you need to provide any specific information to your landlord. You should check to see whether you need to get approval from them, and if so, get written consent before you proceed with a sub-letting arrangement.

You will remain liable under your lease from the landlord, and continue to pay rent to your landlord and to otherwise deal directly with your landlord. The subtenant pays rent to you and normally has no direct dealings with your landlord.

Every situation is different, which is why you need expert advice from a commercial lawyer. We’re small business specialists, so you know you’re in safe hands with us.

We’ll consider your unique situation and let you know if we think this is right for your business.

Our head office is at Inspire Cowork – a coworking space in Sydney – but we also support flexible work for our team. Our lawyers can work from anywhere.

We use technology to come to you, wherever you’re located around Australia. Many of our clients work from home or at coworking spaces, just like us.

We communicate with our clients via phone, email and Zoom – whatever works best for you. There’s no need to meet face to face, but if you’re ever in the area you’re welcome to drop in!

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