Office Space subletting terms
Have you ever wondered what the term 'Subleasing an office space' means? Well, subletting is a simple term, which is used when a tenant leases his leased property to a third-party. This is a pretty common term in the real estate department and the idea of subletting is also pretty simple. However, the terms and conditions followed in this process are intricate and complex. Catch a glimpse of the following text to grab a more insightful idea about the topic.
Sublessor and Sublesee
While renting a property, a tenant may feel the urge to sublet the property to another party. In this case, the tenant becomes the sublessor and the second tenant or the third-party becomes the sublesee. Both these terms refer to the fact that these two parties are actually leasing the property simultaneously. Take for instance, if a company leases an office space that they become a sub owner. Now, if this company wishes to expand its ability, then it can always lease small units of this office space to a third-party. This third-party there before becomes the subleasee or the subtenants in this respect.
Maintenance of property by the Subtenant
Among the various terms and conditions for subletting a property, a major clause is concerned with the with the proper maintenance terms undertaken by the Subtenant. According to the terms, the subtenant or the third-party has to take the responsibility of maintaining the property. The subtenant also has to keep the furniture and the decorations safe from wear and tear, as it was kept initially. The second tenant is also liable for all the damages caused to the property.
Repayment of pending bills
The second tenant is also liable for paying all the pending bills of the property. He remains liable to the original Lessor in this respect. When there is a lower rate of interest, the original tenant is awarded with a comparatively less rent. However, when there are high market rates, then the subtenant has to pay a significantly higher rent to the first tenant.
Damage recovery charges
Very often, the Subtenant has to pay a specific amount to the sublease as a security deposit for any and every damage caused. This damage cost is not covered in the monthly rent, wear and tear charge and utility charge. Again, the original tenant returns this deposit amount to the third party, if the office space or property is returned in the initial condition when it was subleased. This deposit money is then returned to the subtenant within thirty days of the conclusion of the term.
Payment of utility, telephone and electricity charges
According to another vital term of clause, the subtenant has to pay a percentage of the utility charges, telephone charges and electricity charges, if the charge is not fixed by the sublease. The third-party might also offer the said services, if the bills are not paid on time.
These mentioned terms cover the major clauses that are to be followed by the sublease and the subtenant. Keep these clues in mind while subletting a property. The various terms and conditions associated with office space subletting is mentioned in this text. The complete meaning of the term 'sublease' is also thoroughly mentioned here.