Have you recently signed a rental lease with real estate? Do you know you have a legal option to transfer or assign this Lease to someone else?
This mutual agreement between you, your landlord, and your assigned tenant are known as the assignment of leases. Instead of you, your assignee tenant will pay the rent to your landlord for the remaining six months.
What is meant by Assignment of Leases?
An assignment of Lease is defined as the legal permission your landlord grants you when you want to pass your rented flat or office space to a new tenant. It is also called a lease transfer or a lease takeover.
Your assignee replaces you as the new renter under the assignment of leases. The assignee will pay their rent straight to the owner and be considered assignee tenants until the contract is over.
Why Do You Need An Expert Guidance on Assignment of Lease?
The problem with lease assignments is that underneath the lease, you are still not completely released of responsibility; therefore, if your assignee fails to pay the rent, the owner may chase you.
Essentials of Assignment of Lease
While drafting the lease assignment, you must include the duration of the rent period and when the agreement will end. You will also mention the utility bills they must pay for the commercial space or office buildings they stay in. Lastly, they need to pay the rent directly to the property owner.
After the landlord’s review and consent, this deal will be formalized between you as the tenant, your assignee tenant, and the legal property owner of the commercial space available.
Advantages of Assignment of Leases
This assignment of leases is useful in utilizing properties as instead of canceling them or paying for them without proper use, and another tenant will use them.
Now that the COVID pandemic is about to be over, another tenant might run a successful business in the building you rented for your business that didn't work during the pandemic's peak.
Leasing Commercial Spaces On The East Coast
So, as a tenant, if you are looking for an assignment of lease options. Contact Milbrook Properties if you’re looking to take a over a lease in one of our commercial properties.