{"id":1703,"date":"2020-12-20T22:34:26","date_gmt":"2020-12-20T22:34:26","guid":{"rendered":"https:\/\/nz.legalvision.com.au\/?p=1703"},"modified":"2021-03-19T09:33:49","modified_gmt":"2021-03-18T20:33:49","slug":"what-is-the-difference-between-subletting-and-assigning-your-lease-in-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/property-and-leasing\/what-is-the-difference-between-subletting-and-assigning-your-lease-in-new-zealand\/","title":{"rendered":"Subletting vs Assigning Your Lease in NZ"},"content":{"rendered":"\n

When you are renting out a room in a commercial space, you may not always want to spend the full length of the lease at the property. You may need to move your business to a new premise. Regardless, it can be frustrating to pay for a space that you are not currently using. To avoid this, it is common for people to either sublet or assign their lease. This article will detail the difference between subletting and assigning your lease in New Zealand.<\/span><\/p>\n\n\n\n

Subletting Your Lease<\/span><\/h2>\n\n\n\n

Subletting<\/a> is when you, as the tenant of a commercial space, move out of that space and rent it out to someone else for a fixed period. This person or business will be the sublessee or subtenant. Under this agreement, you are now the landlord to the sublessee. <\/span><\/p>\n\n\n\n

However, your original lease with the landlord and the obligations you have taken on in that tenancy agreement continue. Your contract with your landlord will oblige you to pay rent on time and look after the house. If your sublessee does not pay rent or damages the property, the landlord can come to you for payment. <\/span><\/p>\n\n\n\n

To sublet your lease, you must first get the landlord\u2019s permission<\/a>. You must look through your lease agreement before subletting your room or space. This is because your agreement may prohibit subleases. <\/span><\/p>\n\n\n\n

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If you do sublet without your landlord\u2019s permission, or despite a clause in your agreement prohibiting subletting, you may be fined or risk eviction.  <\/span><\/p>\n<\/div>\n\n\n\n

Assigning Your Lease<\/span><\/h2>\n\n\n\n

When you assign or transfer your lease<\/a> to another person or business (the assignee), you are replaced as the tenant. The assignee is taking on your obligations for the duration of the lease term. This includes the responsibility to pay rent and observe all other terms of the lease. However, this new tenant is not entering into a new lease. They are taking on your liability as the tenant under the current lease. <\/span><\/p>\n\n\n\n

An assignment can occur through a range of ways, depending on the kind of lease you have. The most common way you can assign your lease is through a deed of assignment. This deed will be a written document containing the assignee\u2019s obligations and the date that the assignment is to occur. From this date onwards, you, as the original tenant, are no longer responsible for the tenancy. However, if you still owe money to the landlord, you must pay this. <\/span><\/p>\n\n\n\n

The current landlord, the tenant wishing to assign their lease, the assignee and any other tenants of that property must sign the deed of assignment. The deed will also contain the standard terms of the lease. If you do not get your landlord\u2019s written consent, you cannot assign your lease and responsibilities. <\/span><\/p>\n\n\n\n

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It is best practice to read your lease before assigning it to another person or business, as it may contain a term that prohibits assignment. <\/span><\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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