Lease assignment is when a tenant transfers their entire leasehold interest to another party. Most LA leases prohibit assignment without landlord consent.
Distinct from subletting (where the original tenant retains interest). Full assignment transfers all rights and obligations to the assignee. Most residential leases explicitly prohibit or require written consent for assignment.
For LA multifamily sellers, unauthorized lease assignments are due diligence red flags. Review lease language and actual occupancy during pre-listing preparation. If assignments have occurred, document and address before buyer diligence surfaces them.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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