Tenant Sub leased without approval?

A bit of a tricky one, I co-own a small commercial property (mixed storage + front end shop like premise) in NSW. Tenant has been relatively good so far but one issue has recently popped up...found out via googling the address to find out it has been sub-tenanted recently.

The PM is a scared, useless ahole (another story for another day) has complexed matters in saying for me to "let it go" wtf? I'm not so much concerned about recovering the dollars, because it was leased out as a whole but what would I need to be wary of?

I want to avoid it getting ugly where they'll be arrears and so forth. On a 6 month inspection or visit, business seems fine but they did say once that the place is a bit too big for their purposes. The only thing I can think of is for insurance purposes the sub tenant must be adequately covered?

Thanks.

 

Does the lease permit or forbid subletting?

 

It is under a standard Retail Act which does permit subletting I think from memory only if it was approved by the landlord in writing.

They've been generally a good tenant, premise is OK condition and payments have been done mostly on time. We had been hampered by a bad leasing agent.

 

A lease is different to the Act.

 

If you feel the leasing agent is holding you back, is there a reason you haven't moved to a new agent?

 

What you could be concerned about is them doing something not authorised. For starters will your insurance cover you in this situation?

 

Remember this is in commercial section not residential

 

@willister

• Is the usage for both the tenant and subtenant compatible with the usage clause of the lease?
• Do you need to advise your broker/do they need to go to the site?
• Will that affect the cost of your insurance policy? (This increase may be recoverable under the lease if it provides for increased insurance costs due to usage).
• Retail leases act provides that consent to subletting may be refused however will this place the tenancy in jeopardy?