Assigning a lease is when a renter transfers their rights and obligations in a Lease Agreement, either commercial or residential, to another person.
Generally, when you assign a lease, you move out peranently, and a new tenant moves in for the remainder of the lease term.There are several reasons why you might need to lease a property for commercial or residential reasons.
Itâs a great way to end your lease on good terms and without paying any early termination fees.However, there are few essential things to consider before you assign a lease to someone else.Things to Consider Before Assigning A LeaseWhat happens if you need to leave your rental before your agreement ends?
Depending on the lease, different requirements need to be satisfied before the original tenant can be released of any lease-related responsibilities.You Need Your Landlordâs ConsentSometimes your landlord will include a clause in the original lease agreement called master lease that allows you to assign your lease to a new tenant.
CocoSignUnfortunately, not obtaining consent before assigning your lease could result in a negative outcome, including the assignee getting evicted from the property.
Some of the things a landlord checks before assignment of the lease include:Financial Status: Your landlord might want to check employment status, current payment tabs, and account statement, including credit, to determine if the tenant is in a strong position to meet applicable property fees.References: Youâre required to provide assignee previous landlords statements to show tenant reliability to meeting property responsibilities and any history of missed payments or evictions.Intended use of the property: Your landlord may probably want a tenant that will use the premises in broadly the same way you have been operating in the past.Required alterations: Provide advanced notice of any changes the new tenant may wish to make to the property.Understand Your Liabilities When Assigning A LeaseAfter signing a lease assignment, youâre not automatically exempt from all liabilities related to the property or the original lease.