Effect Of Unlawful Subleasing, Assigning & Illusory Of Lease On Investment Property, Part 2.

This last week has been a blessed and fun filled week for me, my dad’s friend whose son had his wedding on Saturday and a neighbour whose daughter got engaged on the same day. My brother’s wife gave birth to a bouncing baby boy after a long wait since the first child and this for me is worthy of celebration.

I was at my neighbour’s engagement ceremony on Saturday and it reminds me of when we celebrated the birth of this young lady slightly over twenty years ago and it gladdens my heart to see this event come to pass because I was one of those that actually arranged and prepared the venue for the guest who attended her naming ceremony.

It is obvious that life can be fair to some people and can be surprisingly horrifying to some people and I must say that whatever life throws at us, we must learn how to accept and take responsibility in order to take action steps to either correct the situation or totally surmount and overcome the difficulty or terrifying challenges and situations.

And if you are faced with terrifying challenges from known or unknown people who are determined to thwart your career or business in order to ensure your future and your life are buried alive or have  no meaning that has made you burnt the bridge many times for a new start like some of us have done in the past, it is time to be really strong.

If any of your challenges has got you thinking or wondering why God has allowed so many terrible events to happen in your life and has also allowed the perpetrators to get away with their evil deeds which  is or making you give up on waiting on God to smile on you after a long wait in prayers and commitment to his work. I say to you it is time to really be strong and still hope for better days ahead and am sure all these are for some reasons.

I know for sure that when life takes something away from us it is telling us that its time to get something better all we need do is to look properly at the other opportunities that life and our environment are presenting to us but most of us ignore this and seem to be contented with what we have and our neanderthal behaviour, non responsive and lack of immediate actions or reactions to our rapidly changing social, economic and environmental situations and challenges is responsible for most of our problems but above all it is time to be strong and take control of your life.

I am happy to announce to you that we shall be celebrating our little and puny success of 30 followers on-line, we will be a year on-line in few weeks from now and we hope for a brighter, successful and promising future.

And a word to those who claim to be controlling the cyber space who have succeeded in thwarting and sabotaging our efforts we give kudos to you and we must say to you that we are yet to understand the reasons for your actions and what exactly is responsible for your odium toward the company and we pray you and your loved ones reap from what you have sown, as we wish ourselves.

I truly hope my introduction which many may consider an otiose introduction is not boring and I want to believe you must have learnt  a lesson or two from it so let’s get down to the business of the day which is the concluding part of the post on Effect Of Unlawful Subleasing, Assigning & Illusory Of Lease On Investment Property. and without wasting any more of your precious time lets get into the discussion

Many people may be quite familiar with subleasing but I doubt if many, particularly in Nigeria understand the concept of Assigning and Illusory of lease and what the Tenancy Law says regarding these property lease concepts, process and procedure to make it legitimate for occupiers to apply on their leased apartment.

It is a stale news that homeowners forbid occupiers from subleasing, assigning and illusory of their leased apartment basically to avoid unnecessary dispute, conflict or confusion between them and the occupiers which often times if allowed leads and ends in unnecessary additional expenses should in case a lawsuit ensued due to violation of the sublease, assigning or illusory of lease contract agreement by the occupiers.

I avow that this is a high level display of ignorance and our usual and consistent avoidance of being creative with initiatives and opportunities to improve our lifestyle that can be attributed to lack of understanding of the concepts and the whole essence of subleasing, assigning and illusory of lease by all parties involved in it.

The ineptitude, lack of knowledge and avoidance by many to consciously apply some level of creativity in lease tenancy contract agreement not only by the occupiers and homeowners but of course the government which has deliberately ignored and closed its eyes to some of these fundamental issues in the real estate industry particularly on issues directly affecting the homeowners and occupiers.

We could have achieved so much more than what we have achieved in the real estate industry now, If only can be bold enough to embrace creative and innovative thinking and also adapt flexibility not only in lease of properties but also in every aspect of the real estate industry to help explore some of these identified and specific areas of growth, opportunities and possibilities in the real estate industry which will go a long way in helping the people build wealth and financial stability.

As a proponent of excellent initiatives in real estate investing and investment property management with deep understanding of what the people and government stand to achieve together on properly regulated, controlled and managed investment property if only we can be courageous enough to give it a try.

This idea of making everyone believe that the property or properties are investment properties is wrong and I think it is time to let the people understand this in order to wake up from their dreams of ignorantly thinking or referring to their personal, principal or owner’s occupied properties as an investment properties or assets which in actual fact or in the true sense of it are actually liabilities.

My reasons for this is that many homeowners eat up their income, cash flow, operating expenses barely few days or a week after collecting rent from their occupiers and this gross act of indiscipline and mismanagement of rent on the purported investment properties will never in anyway help the homeowners build wealth.

For this reason, many properties are presently in a very deplorable and tatty state for any reasonable prospective occupiers to be interested in talk less of taking it up on lease which I know for sure many still do when left with no other options in their quest for a better apartment for themselves and their loved ones.

The system has allowed and tolerated homeowners act of mismanagement and embezzlement of their investment property for a very long time which many people may attribute to the economic downturns or hardship but I think its time for government to intervein by promulgating laws that will help serious minded homeowners build wealth.

I strongly believe if government can help make special tax laws that will present not only the homeowners but for everyone with numerous tax benefits and advantages for a well detailed and registered investment properties, which have records of the type of building and numbers of apartments with verifiable and regulated rent amount for each apartment with the government and this is what even the local government can handle.

This will increase people’s confidence and of course enable anyone or everyone have first hand access to the rent history of some of these investment properties even before making any lease application for them, the last rent paid on any apartment and vacancy lease increase can easily be determined without meeting with the property owner.

I am not saying everyone must or should be forced to be part of this initiatives, it must be introduced gradually for people who honestly and truly desire to treat or hold their property as an investment property with government just like we have in other forms of investment such as bonds, stocks etc but to successfully achieve this government must ensure these registered investment properties enjoy enormous tax benefits to encourage others.

I must say the onus is on the government to make laws to protect the interest of the property investment and what they stand to benefit for complying and maintaining the status of their property as an investment property which may allow them a 10% to 15% of the profit or earnings for their administrative efforts and also ensure that the balance are either saved in the homeowners investment account or reinvested into another investment property.

I wish to share more on this concept which in my opinion is beyond the scope of this post and I must also apologize for digressing a bit from the purpose and essence of this post and I want us to dive into the topic fully now.

As I have stated in my previous posts, the purpose of my articles is to educate, guide and help everyone overcome and surmount any real estate investing and investment property problems or obstacles that stood between them and this post is not an exception. I want to show you how you can successfully and legally go about subleasing , assigning and illusory of your leased apartment to a suboccupier or subtenant as the case may be.

Once again, I crave your indulgence to share with you this dippy real life scenario on issue of subleasing of a leased apartment that occurred sometimes ago. It happens that an occupier who actually wanted to exercise his right to a lease renewal whom was denied because of the unlawful means or way he secured the apartment in the first place.

The events unfold thus, the occupier made an earlier attempt to take up the apartment but he was denied for some reasons best known to the property manager in charge of the property after going through the crucial screening and selection process.

It might interest you to know that this man sent a friend to secure the same apartment and unfortunately for the property manager, the person successfully passed the screening and selection process and got the apartment but never moved into the apartment for months.

Surprisingly, the man who was initially denied the apartment moved into the apartment in his place while his accomplice, his friend, the real occupier who secured the apartment and whose name was on the lease agreement disappeared and was no where to be found.

After many attempts to correct this anomally with no result, the situation got heated up and worse, the news got to the property owner who categorically stated that he does not recognize the person that moved into the apartment as his occupier but at this time the property manager has either wrongly or smartly used his discretion.

He has opened discussion or started dealing with the man as a monthly occupier after the existing lease elapsed to avoid or reduce the vacancy rate of the apartment instead of terminating the lease contract agreement.

The issue now is the owner insists on making sure the man vacates the leased apartment and the property manager is ensnarned in the otiose secret arrangement with the man if you ask me. This arrangement makes this man thinks he has the right to keep staying in the apartment without any lease agreement with the property owner.

I must emphasize that it is not as if the homeowner does not know what to do likewise many property owners faced with this situation out there but many of these people have lost confidence in the judicial system and most homeowners do not want to go through the burdensome court process and the ruinous legal cost of settling rent issues in court.

As a result many occupiers have now mastered how to maximize this inadequacies and deficiencies in our tenancy law to their benefit by exploiting the ineffectiveness and inefficiency of our court system and of course delays in giving judgment for possession which most times take a year or two if you are lucky.

As I was saying, this man for some reasons believes he has every right to the apartment as an occupier as well as the right to a lease renewal which he never had in the first place. He thinks if he can establish the fact that he has maintained the apartment as his primary residence, participating and contributing to most of the activities in the building will make him the legitimate occupier without a lease agreement to that effect, I say he got it all wrong!

As we all can see from my description of this man all along, it is obvious that I really don’t know what to call him and I also find it difficult to refer to him as a suboccupier because I see this more as a pure case of illusory subletting which I may discuss with you later as we progress in this article.

In my opinion, most if not all lease disputes between homeowners and occupiers are rooted in ignorance, disregard for the process to legally sublease, assign or illusory of lease and of course lack of fundamental provisions in the tenancy law to explicitly explain the roles, responsibilities and obligations of all parties involved in issues that has to do with subleasing, assigning and illusory subletting.

As I mentioned earlier, the case from the story I have just shared with you is a clear case of an illusory subletting of lease because the prime or principal occupier who secured the apartment from the property manager and whose name is on the lease contract agreement, who never showed up to physically take possession or occupy the apartment and who never also maintain the apartment as his primary residence.

Besides, we must clearly understand that if at all there was a case of any subletting, assigning or illusory of lease arrangement or contract between the prime occupier and this man in this issue perhaps it was intended to evade various requirements of the law because its obvious that none of the laws, process and procedure involved to legitimately to this was strictly followed.

And I can firmly state or pontificate that both the prime occupier, who secured the apartment and this man stand to be evicted from the apartment on the premise that both disregard and act against the tenancy law if indeed there was a case of transferring of interest in the apartment from the prime occupier to the man.

Let me expatiate on my position on this, I believe no one consented to the suboccupier moving into the apartment in place of the prime occupier, who initially approached the property manager to secure the apartment and even if there was from what I have seen so far, it could only be a case of a licensee or a squatter.

My presupposition is that he may probably got the consent of either the property manager or the prime occupier before moving into the apartment but didn’t pay rent and have no lease agreement with the homeowner which makes him just a Licensee, And on the other hand if he has no permission or consent of any of these two people before moving into the apartment then he is also just a squatter.

However, If there are evidence or it can be proved that the suboccupier actually pays rent to the prime occupier then we all are staring at an entirely different case which brings me back to main purpose of addressing these issues of subleasing, assigning and illusory of lease which many have secretly taking undue advantage of for so many years.

Surprisingly many unsuspecting people have ignorantly fallen victims of this simple concept complicated by some selfish and selfcentered individuals who may actually think they are secretly helping out a friend without involving the homeowner or the homeowner’s representative to legally formalize the subleasing, assigning or illusory of lease by the occupier.

I want us all to understand that whatever or anything anyone finds difficult sharing and still want to claim to have absolute control of is definitely false and not true because from experience and the principle of life, anything that is difficult to share is completely out of our control and can or will easily degenerate to something we never wished for.

I must be honest with you, In reality particularly in Nigeria, most homeowners disapprove of subleasing, assigning and illusory of lease when in lease contract agreement with an occupier but the great news is that these concepts are legitimate and the law allows for subleasing and assigning of leased apartment provided the homeowner consented to it and the process involved are strictly followed.

Subleasing which could be described as the temporary transfer of some of the prime or principal occupier’s legal right or interest in an apartment to another person regarded or referred to as a suboccupier or subtenant as the case may be.

However this becomes extremely difficult and nay impossible if an occupier has committed himself to signing a lease contract with a clause that forbids the occupier from subleasing or assigning the leased apartment to another person, this will make any attempt to sublease or assign to be seen as a violation of the terms on the lease contract and you may have to wait for the court to exculpate the property owner for giving such a contract to sign in the first place while the law says you can sublease or assign your apartment.

Hence occupiers who may have the intention or plans to sublease their leased apartment must ensure there is no clause that prevents or hinder them from subleasing or assigning their apartments in the lease contract agreement.

And for a smooth, hitch free and successful subleasing, assigning or illusory of lease, the prime or principal occupier must find a way to inform the homeowner of his or her intentions to sublease the apartment to a suboccupier through what is known as a request notice and this must be not less than thirty days before the proposed subleasing.

Invariably, this step allows the property owner to ruminate and cogitate about the proposed subleasing and the lenght of the sublease and of course will enable the homeowner to consent to the subleasing plan if satisfied with the arrangement.

The prime occupier must ensure that the sublease request notice sent to the property owner clearly states and includes the terms of the sublease, name and other details of the suboccupier, written consent of other occupiers in the building, the guarantor of the initial lease and of course a copy of the original lease attached to the copy of the proposed sublease duly acknowledged by the prime occupier and his suboccupier.

After the acknowledgement of the receipt of the sublease request notice by the homeowner from the prime occupier, the homeowner has about ten days to request for additional information on the sublease and approximately thirty days to respond or reply to the sublease request notice from the occupier.

I must stress that the homeowner is rather not under any form of pressure to take decision on this request and as a matter of interest has the right to either consent to the sublease proposal or give good reasons to deny the sublease arrangement.

Apparently, If the homeowner consent to the sublease then the prime or principal occupier can go ahead with the sublease process and it is worthy of note that he or she remains liable to the homeowner for the obligation of the lease which includes the future rent.

However, in the event that the homeowner refuses and denies the prime occupier of the right to sublease the apartment and can give good reasons to reasonably justify his action or decision then the prime occupier has no legal right to sublet the apartment and of course the homeowner is under no obligation to release the prime occupier from the original lease.

The element of surprise in this concept is that if it turns out that the homeowner unlawfully refused the prime occupier and was unable to reasonably justify his reasons for not consenting to the sublease arrangement then the prime occupier may legally carry on with the sublease process and if a lawsuit ensues afterwards and the court rules in favour of the prime occupier then he or she is legally bound to recover the court cost and attorney fee from the homeowner.

I find it difficult to fathom why many disregard this process and also fail to take advantage of this opportunity and it marvels me to see that most people rather prefer to have their subleasing and assigning of lease done secretly and often times are done in the most dishonest and complicated manner because of greed.

If you ask me, many of these obscurantism or secret sublease arrangements by occupiers with a suboccupier whom the prime occupier purportedly introduced to the homeowner as friends, relations and family most times end in frustrations, confusion, embarrassment, unnecessary additional expenses and loss of personal properties in the event of possible eviction from the apartment when all didn’t go as planned.

Besides, If you are subleasing your leased apartment to someone else, I think its will be wise and sensible to subject that person to the same rigorous screening and selection process you passed through before securing the apartment as well as following the standard sublease process and guideline for a successful sublease arrangement.

This step allows for proper discussion, evaluations and considerations between all parties involved to avoid and prevent parties being on each other’s neck and of course prevent the ugly and embarrassing circumstances which many occupiers and their suboccupiers find themselves in later into the secret sublease arrangement due to greed, dishonesty and not satisfying the requirements of the law in the subleasing process.

It is a pity that I wont be able to complete this topic in this post because we have not fully discussed assigning and illusory of lease, we only glimpsed at them but hopefully in the post I will deal with all of these issues so that we can move or proceed to other important and interesting topical issues in real estate investing and investment property management.

 

Best of luck!

 

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Ordiez Resources Inc, Where The Future Of The Real Estate Industry Begins, This Is How Tomorrow Moves In Real Estate Investing And Investment Property Management, Serving And Guiding Humanity http://www.ordiezresources.com

 

Remember that opportunity to serve and guide humanity is our greatest privilege and making our clients happy and satisfied always is our greatest pleasure, hence if you Think real estate, Think Ordiez Resources Inc.

 

Thanks

Olatunbosun Idowu

For Ordiez Resources Inc

@ordiezresources

 

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