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  1. #1
    Join Date
    Sep 2010

    Default Illegal Commercial Sublease in Kansas

    My question involves landlord-tenant law in the State of: Kansas.

    My husband owns a small business. He recently moved into a new facility and has been subleasing his old facility out to cover that payment until his contract is up in November. His original lease states he is not allowed to sublease, however the property manager who did most communication between the owner and my husband had "ok'd" it with the owner that he could sublease it out. My husband did not get this "ok" in writing, so I'm assuming it's not a valid amendment to his original lease.

    My husband then subleased out to a girl who turned around and put a lot of her personal money into the place. What's crazy is this was a verbal husband sent her a formal written agreement that she never signed and he hadn't signed it either, but she kept saying she didn't get it. So a formal agreement was never signed.

    He also has one other sublease that has a written agreement.

    Now, the true owner has changed his mind. It is an industrial style building and doesn't like the increased traffic from these businesses and has decided that he wants to stick to industrial-style tenants only. So he has given my husband the 3-day warning thing over email saying he's not allowed to sublease per his agreement and if they subletters are not out in 3 days that he will evict everyone.

    The girl who has put so much money into the place is very upset, and rightfully so. She can't get that money back out. It was stupid of her to put money into a place without a formal lease and equally stupid of my husband to sublease based on a "verbal" that it was ok for him to do so when his contract said otherwise.

    We don't do business there, so how does this evication hurt our personal business? Is it on our record so in the future if we try to rent a place elsewhere they will know we were once evicted? Is this the only way it hurts us?

    I'm guessing the subletters have a right to sue my husband now since he can't honor his end of the contract being that it was illegal for him to do. One is a verbal sublease agreement and one was a signed sublease agreement. He is able to offer the girl who signed the sublease a new sublease at his new facility as he has room for her business there. Does this relieve him of obligation to her since he can give her a place elsewhere? But the girl with the verbal agreement who put all the money into it, I'm assuming can come after him?

    By the way, her business is failing anyway and she is probably going to cut her losses and run and has acted interested in cutting a deal where we help her pay some of those losses and then she won't take action. I assume I need a lawyer to look over any agreement such as this to ensure they can't come back later and still sue.

    Sorry this is so convoluted.

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Illegal Commercial Sublease in Kansas

    If the business is not incorporated, or the lease is held by your husband individually and not by the business entity, the eviction would be against your husband as an individual and would thus go on his credit.

    If he has been collecting rent from his tenants, he has an obligation to terminate their tenancy only upon proper notice consistent with their leases. "Move in three days because I'm being evicted" is not proper notice, and if he doesn't live up to his obligations as a landlord by providing the rented premises he can be sued for his breach of contract. (Again the question is raised, is he the landlord or is his business the landlord.) He may want to try negotiating with his landlord for a more reasonable time period, such that he can give his subtenants proper notice.

  3. #3
    Join Date
    Sep 2010

    Default Re: Illegal Commercial Sublease in Kansas

    Thank you for your reply. He has tried negotiating with the landlord and he is not willing to budge. So basically, husband has offered to compensate the subleases for their time and trouble and we are going to make sure to put something in writing ending the subleases legally and changing the contract with the amount in there kind of like a settlement. Is there anything I am missing? Is this ok?

    The business is a separate entity, but I believe my husband has personally guaranteed the lease agreement with the owner so an eviction may go on his record, which is fine. I can deal with that.

    If they were to sue for breach of contract, I guess I am wondering if our savings would cover it or if they could get something outrageous. It seems like they should be able to get what they lost due to us (putting some time/energy and money into the facility) and maybe an amount for emotional trouble. I'm a budgeter so just trying to budget and put money aside, just have no idea what to expect. Like I said, we know mistakes have been made and people were hurt so we want to help compensate them and make this right. Lesson learned.

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