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  1. #1
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    Sep 2016
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    Default What to Do if Your Subtenant Breaks the Lease

    A commercial tenant found a subtenant to assume the remaining term of a lease. Several months later, the subtenant has announced that business is bad and they want to move out, breaking the sublease. What can the tenant do? Are they back on the hook for rent?

  2. #2
    Join Date
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    Default Re: What to Do if Your Subtenant Breaks the Lease

    Absent an assignment of the lease that is approved by the landlord, taking the original tenant out of the equation, the original tenant remains liable for rent through the end of the sublease. That's the normal consequence of subleasing -- the original tenant remains liable to the landlord, and acts as landlord to the subtenant.

    The original tenant can try to sue the subtenant for the unpaid rent, but may have difficulty recovering the money from a tenant whose business is failing. They can also try to find another subtenant to mitigate their damages. They can also discuss the situation with their landlord, in relation to such options as a possible buyout of the remainder of the lease, or the possibility that the landlord will help look for a replacement tenant.

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