What You Need to Know Before You Sublease Your Commercial Space in Ontario
If you are looking to sublease your commercial space in Ontario, it can be a great way to bring in extra income or cut down on rental costs. However, subleasing a commercial property involves legal complexities that require careful consideration. Before you make any decisions, it is important to understand how subleasing works and why it is a good idea to speak with a commercial lawyer before moving forward.
What Is Subleasing?
Subleasing happens when you rent out part (or all) of the space you are leasing to someone else. That new tenant, called a subtenant, pays you rent, and you continue paying rent to your landlord. You are still responsible for the original lease, but now you also take on the role of “landlord” to your subtenant.
It can be a helpful arrangement, but it also adds a layer of responsibility and potential risk.
Are You Allowed to Sublease Your Commercial Space?
In most cases, commercial leases in Ontario allow subleasing, but there are often conditions. Some leases say you need written permission from your landlord. Others might not allow subleasing at all. It all depends on what is in your original lease, which is why it is worth getting it reviewed by a commercial lawyer who knows what to look for.
Why It is Wise to Talk to a Lawyer Before You Sublease Your Commercial Space
Even though subleasing your commercial space might seem simple, there is a lot to think about. A lawyer who understands commercial leases can help you avoid issues down the road by making sure everything is handled properly.
A commercial lawyer will:
Review your lease to see what is allowed and if any special rules apply;
Prepare a solid sublease agreement that clearly outlines rent, responsibilities, and expectations;
Help you request the landlord’s permission (if needed) and put together a proposal they are likely to approve;
Make sure the agreement follows Ontario’s Commercial Tenancies Act (CTA) that outlines the relationship, rights and obligations between commercial landlords and tenants;
Explain your legal responsibilities and how to protect yourself with the right insurance;
Offer advice if issues come up with your subtenant later on;
Help you understand where your responsibilities begin and end, especially if any disputes come up later.
Having a lawyer by your side also means you will have someone who understands the local market and knows what to look for when it comes to subleasing in your area.
Start the Process of Subleasing Your Commercial Space Properly with Gionet Fairley Wood LLP
Subleasing your commercial property can be a smart move, but it needs to be done carefully. Speaking to a lawyer before taking action is the best way to protect yourself and avoid costly mistakes.
At Gionet Fairley Wood LLP, we help commercial property owners across Barrie, Grey County, Muskoka, and Simcoe County make sure their sublease agreements are clear, legal, and fair. Whether you are looking to review your current lease or draft a new sublease agreement, we are here to guide you.
Give us a call at (705) 468 1088 or visit our website to schedule a consultation. Let us make sure your sublease is set up for success.
***The information provided in this blog is for general informational purposes only and should not be construed as legal advice. If you have legal questions, we strongly advise you to contact us.