Subletting rights in an apartment building: review the data room and lease

Subletting is not automatically a side issue in an apartment building purchase. It can affect actual use, the relevant contact person, income assumptions and handover. Buyers should check what the head lease permits, whether consent exists and how the premises are actually used.

Compare the head lease with the sublease

For a review under section 11 MRG, the head lease is the starting point. Add the sublease, consent letters, payment flows and communication between head tenant, subtenant and owner.

The review of fixed-term leases shows why the lease timeline matters for value planning. Subletting adds a separate question about use and the contract chain.

Document consent and actual use

The documents should show who uses the rooms, who pays rent and who is responsible for damage or return. A line in the rent roll alone is not enough.

For commercial premises, permits, operating duties and the actual business may also matter. Use should therefore not be assessed from the tenant’s name alone.

Allocate handover and liability in the contract

The purchase agreement should state which contracts are delivered, whether consent remains open and who receives claims or bears duties under the relationship. Handover provisions should address continuation, vacating or a new arrangement.

If a breach of the head lease is possible, a clause should not simply confirm the tenancy in general terms. The buyer needs disclosure and a risk allocation that matches the facts.

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