THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, September 23, 1995 TAG: 9509210293
SECTION: REAL ESTATE WEEKLY PAGE: 06 EDITION: FINAL
COLUMN: Landlords & Tenants
SOURCE: BY WILLIAM MAZEL, SPECIAL TO REAL ESTATE WEEKLY
LENGTH: Short : 49 lines
I own business real estate in Norfolk. For many years, I have leased a store building to various tenants. In my leases, I have always included a provision that the tenants could assign or sublet the premises with my permission.
The lease with my current tenant has five years to run. About nine months ago, my tenant did sublet, with my permission, the premises and now I find that his tenant is three months delinquent in the rent. I told my tenant that it is his legal obligation, under our lease, to pay the rent.
He says that he does not owe the rent because he subletted with my permission and, therefore, he is removed from any further liability to me. I pointed out to him, first of all, that he was wrong and, secondly, that he was collecting a greater rent from the sub-tenant than he was paying me and that he was paying me the rent every month as he received it from his sub-tenant.
He is, therefore, liable. Before I file suit for the delinquent rent or take other steps, am I correct that my tenant owes me the rent?
You are correct. Many people do not realize that when they assign a lease to someone or they sublet real estate, they remain liable on their lease with the owner of the property until all the obligations are fully met.
In this case, your tenant is liable for the balance of the rent due and owing and may very well be liable to you for the balance of the term as it falls due if the current occupant is evicted and you or your tenant cannot obtain another tenant to rent the property.
Your approving the tenant to sublet the premises did not destroy any of your legal rights. You only retained the right to approve the subletting in order to protect your premises.
When you rent property to someone, you do so because you feel the tenant is financially stable and that he will return the property to you in the same condition received, normal wear and tear expected.
If you find that you have to sue to collect the delinquent rent, you might decide to sue both your tenant and the sub-tenant in one suit since it's cheaper than to sue them in individual cases. Then you could collect the money from whoever has funds available. MEMO: William Mazel is a retired lawyer. Send comments and questions to him at
Real Estate Weekly, 150 W. Brambleton Ave., Norfolk, Va. 23510. by CNB