You may find out that another business has moved into space you rented to your tenant. If you never approved the arrangement, you might be unsure why the business is there or what your tenant was allowed to do under the lease.
If your lease requires written approval before a sublease, your tenant could violate the agreement by going ahead without it. Even then, you may not have the right to end the lease right away. What happens next usually depends on the contract and the arrangement your tenant made with the other business.
Start with what your lease requires
A sublease usually means your tenant lets another business use some or all of the space while remaining your tenant. Your tenant generally stays responsible for rent and the other duties under the original lease.
An assignment is different. Your tenant transfers its remaining lease rights to another party. Indiana law generally allows tenants to transfer those rights unless the lease limits them. Your agreement may require written consent for a sublease, an assignment or both.
An unauthorized sublease can raise other issues
Once another business occupies the property, you may have more to review than the lack of approval. The new occupant could use the space in a way that does not match what you agreed to with your tenant.
Your lease might explain how you can address that type of violation. Depending on its terms, you could have the option to require your tenant to correct the problem or end the unauthorized arrangement. Your tenant’s response may also affect how the dispute develops.
Review the arrangement before responding
You may want to compare the lease with how the other business is actually using the property. Photos, messages and other records could help show what arrangement your tenant made. If the issue becomes harder to resolve, learning how to address a lease dispute might help you understand what options the agreement provides.
