Subleasing an apartment
I lived in Europe for years where I made a lot of money without owning any property through subleasing residential apartments. I am now back in Tanzania and want to replicate this business here. Is subleasing allowed in Tanzania? Kindly guide me.
GH, Dodoma
Leases are governed by the Land Act [Cap. 113 R.E. 2019] (the Land Act). According to section 89 (1)(i) of the Land Act, there is an implied term in every lease, other than a short term lease, covenants by the lessee (tenant) with the lessor (landlord) binding the lessee not to transfer, mortgage, charge, sublease or otherwise part with the possession of the leased land or buildings or any part of it without the previous written consent of the lessor, that consent not to be unreasonably withheld. To simply put it, you are required to obtain the consent of your landlord before you sublease. Likewise, the landlord is not expected to unreasonably withhold this consent. Remember some lease agreements specifically prohibit subleasing. It is therefore important to read the lease agreement before you consider subleasing the property. Since you plan to do this as a business, be sure to comply with other relevant laws governing businesses in Tanzania including our tax statutes. Your lawyer can guide you further.