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Lease Agreement With Sublease Clause

oboloo Glossary

Lease Agreement With Sublease Clause

A Lease Agreement With Sublease Clause is a business model that enables the tenant to sublet the property that they are renting from the leasing property owner. This means that, while the tenant is still obligated to pay rent to the original leaseholder, they are permitted to rent out parts or all of the property to someone else. The tenant will receive most of the rental income from the new sub-lessee, but is responsible for setting up and maintaining a proper agreement between the two parties. The leasor of the property must be informed of any agreements made between the tenant and a sub-lessee, as they have final authority over who rents the property. Ultimately, this type of arrangement is beneficial to both parties as it allows them to capitalize on the value of their property while also providing flexibility in terms of occupancy.

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