Subleasing Office Space Can Be Risky If You Are Not Careful

First base and frontmost, what encounters if the previous tenant sub-landlord goes bankrupt? Most leases have a clause in them cancelling the lease or giving the landlord the right to cancel the lease if the tenant declares bankruptcy. If this happens and you do not have any protections, you will either be out on the street or paying higher rents.

What happens if you are paying rent to the former tenant sub-landlord, but they are not paying the landlord the full amount of the rent due? They are in default of the lease and therefore you are excessively. What finds if the landlord decides to give them the boot? Will you be able to stay in the space at the same range you are currently devoting? In that respect is no guarantee that your sub-landlord will fulfill their obligation to pay the remnant of the ripped or even the rent you pay to them to the landlord.

Although rare, hazardous waste can be another issue, especially if there is land involved. If your sub-landlord caused any hazardous waste, you could find yourself liable to clean it up. Cleaning up hazardous waste is not cheap.