Sublease Spread Capture Calculator

Sublease clauses split profit landlord/tenant.

Primary tenant annual rent

Sublease annual rent

Landlord recapture %

Term years

Total landlord capture

$360,000

Annual spread

$120,000

Tenant's retained profit

$360,000

How the math works

Spread = sublease − primary. Landlord capture = spread × % × years. Tenant profit = spread × (1 − %) × years.

$120k spread × 50% × 6 = $360k landlord. × 50% = $360k tenant. Even split incentive-compatible.

How to Use

Enter primary tenant rent.
Enter sublease rent.
Enter landlord recapture %.
Enter term years.
Read landlord capture amount.

Frequently Asked Questions

Recapture clauses?

Landlord right to capture portion of sublease profit (sublease rent minus primary rent). Standard: 50/50 split, or 75/25 landlord/tenant in some leases. Triggers only if sublease rent exceeds primary rent. Tenant pays primary rent; landlord gets share of spread.

Reason?

Tenant gained market value (e.g., below-market lease); landlord captured that for itself. Prevents tenant from speculating on lease terms. Modern institutional leases typically include recapture; smaller leases may not.

Enforcement?

Tenant reports sublease rent to landlord. Landlord audits. Excess billed back per schedule. Subleases with profit discouraged if aggressive recapture — tenant may choose to vacate and terminate rather than sublease with small profit share.

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.