Sublease Profit Share Calculator

Landlord takes share of sublease profit. This calculator computes it.

Primary annual rent

Sublease annual rent

Subtenant build-out

Broker commission

Landlord share %

Landlord share

Gross sublease profit

$16,000

Net profit (after deductions)

How the math works

Gross profit = sublease − primary. Net = gross − deductibles. Landlord share = net × LL %.

On $16k gross profit less $23k deductibles = $0 net, landlord gets $0. On $40k gross less $20k deductibles = $20k net, landlord gets $10k (50% share). Deductibles matter — aggressive tenant accounting can eliminate landlord share even on profitable subleases.

How to Use

Enter primary lease rent.
Enter sublease rent.
Enter subtenant build-out.
Enter broker commission.
Enter landlord profit share %.
Read landlord share.

Frequently Asked Questions

Standard split?

50/50 common. Some 75/25 landlord favorable. Institutional leases often provide 100% to landlord above profit threshold. Tenant negotiates for cost recovery first (broker, build-out, legal) before profit-sharing kicks in.

Cost deductions?

Subtenant broker commission. Sublease legal. Build-out for subtenant. Free rent given to subtenant. Marketing costs. Deductible from 'profit' before calculating landlord share. Sophisticated tenant maximizes deductibles.

Enforcement?

Landlord audits subleases periodically. Sublease rent reporting quarterly standard. Non-reporting triggers default. Often smaller leases skip this clause — common tenant mistake when leasing small spaces; subleasing without landlord knowledge can create default.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.