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In the lifetime of a business, it may come to the point where its owners wish to vacate a rental property before the lease contract expires. Often times, businesses find themselves moving for several reasons which include:
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Quest to get closer to their target market
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Reduction in the cost of running a business or
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Expansion of a growing business.
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Whatever the reason may be, the owners find themselves wanting to transfer the lease of such property to a third party. While this is possible, it is important to understand that they are a few things you need to know before assigning that lease without bridging the law.
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They include:
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You Need Your Landlord’s Approval
It is important to find out if your landlord has included a clause that allows or disallows assignment of lease in the lease agreement. Whether it is mentioned or not, you will have to get your landlord’s consent in a written form. It is very important that the consent is in a written form, in case of disagreements in the future. This is where the “Landlord’s Consent to Lease Assignment form” comes in. This form is the right document for this purpose as it has been pre-drafted to include most of the information that will interest a judge in the case of a lawsuit.
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The Agreement in the Master Lease Remains Valid After Transfer
You have to be sure that your prospective assignee understands the terms of the master lease which governs the agreement and that he is willing to keep to them. Failure to keep to the terms may lead to a lawsuit or a possible eviction. This is especially important because as the assignor, you are still liable for any breach in the contractual agreement or any damage to the rental property. This concept is known as “continuing liability”.
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The Request for Landlord Consent May Take Time
It is common for landlords to carry out a background check on the prospective assignee to be sure they can keep up with terms in the master lease. You may also be required to sign the Authorize Guarantee Agreement (AGA) that makes you liable for breaches by your assignee.
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You may download free Pennsylvania rental agreement form, Texas rental agreement or rental lease agreement in Florida from our website.