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Do you have to allow subletting as a commercial landlord?

On Behalf of | Feb 3, 2021 | Firm News

As a California commercial landlord, you may encounter a tenant who wishes to sublet your space for a portion of the lease term. Your tenant may not need the entire space anymore and is looking to generate income by renting some of the rental property. Conversely, your tenant may have already vacated the space but still has a good bit of time remaining on the lease.

SFGate reports that there are certain guidelines you must follow when a tenant requests to sublet a commercial space.

The subleasing process

If your commercial tenant wishes to sublease some of the space you leased, you must give your approval first. When responding to the request, do so in writing. You maintain the right to refuse a request to sublease your space. If you fail to respond to the written request, the tenant may assume that it is acceptable to move forward with subleasing the extra space.

Valid reasons for denying a sublease request

You need to have a valid reason for refusing to allow a commercial tenant to sublet. If the prospective subtenant runs a business that is not well-suited for the building, this may constitute valid grounds for denial. The same holds true if you question the legality of the proposed use. You may have valid grounds to refuse a sublease request if your original tenant was unable to stay current on rent.

If you refuse the request in writing, you may have legal recourse if the tenant moves forward with the sublease, anyway. Ignoring your refusal may constitute grounds for eviction.