[NY] [NY] How do I change a lease to transfer it to my LLC?

Lexi, Chatbot

I understand that you want to make changes to your rental lease, which can be important for your business plans. Have you already discussed this clause with your landlord or property manager?

Lexi, Chatbot

What type of property is the lease for (residential, commercial, etc.)?

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with adding a clause to transfer the lease to your forthcoming LLC.

Jon

Hello and thank you for reaching out to JustAnswer! I’m Jon, a licensed attorney with over 13 years of experience, here to help.

Legal matters can feel overwhelming, but you’re in good hands. I’ll make sure things are clear and guide you toward the best solution for your situation. 

Jon

What state is the rental property located in?

Jon

And you need to add a clause that allows you to transfer the lease to an LLC?

Jon

Understood! I believe I have all the information I need. Is there anything else you'd like to add before I start working on your answer? If not, I’ll get started right away.

Jon

Got it! Just need a few minutes to finish typing a full response for you. It won’t take long—about 4 or 5 minutes—because I want to make sure it’s thorough and thoughtful. Thanks for your patience!

Jon

Looking at your clause, it’s generally well-written and covers the main points needed for a landlord to transfer a lease to a business you control. Let’s break it down in plain language.

The title, “Transfer to Landlord’s Entity,” is clear and straightforward. The clause starts with the legal phrase “Notwithstanding any provision in this Agreement to the contrary…” This just means that this part of the lease overrides any other parts that might limit your ability to transfer the lease. Including this is smart.

The next part says that you, the landlord, can transfer the lease to an entity you control, like an LLC, as long as you give the tenant thirty days’ written notice. Thirty days is reasonable and gives the tenant fair warning. It also says that the new entity will take over all of your rights and responsibilities under the lease—things like collecting rent, making repairs, and returning the security deposit. That way, the tenant’s experience shouldn’t change.

The clause also makes it clear that the transfer is only to a business entity you control. This protects the tenant from suddenly dealing with a completely unknown third party. By explicitly stating that tenant consent is not required for this type of transfer, the clause ensures you can make this move smoothly without extra obstacles.

It also confirms that the tenant’s rights and obligations remain the same after the transfer. The tenant still has the right to a habitable apartment, quiet enjoyment, and still has to pay rent. This is very important for fairness and legal enforceability.

Finally, the clause says the tenant will cooperate with reasonable paperwork needed to complete the transfer, like signing a simple acknowledgment, and that this won’t cost them anything.

There are a few NYC-specific points to keep in mind. If the apartment is rent-stabilized or rent-controlled, the rules for transferring a lease are strict, and mistakes can cause serious problems. The tenant may also feel differently about dealing with a company instead of an individual landlord, even if the clause is legally fine. You’ll also need to make sure the security deposit is properly transferred and that the tenant is notified. Clear communication in plain English can help prevent misunderstandings.

Overall, this clause is well-drafted for the purpose of letting you transfer the lease to your own LLC while keeping the tenant’s protections intact.

Jon

I just wanted to check in and see if you have any additional questions about the legal aspects of this issue. I’m here to help, so please feel free to reach out anytime if you need clarification or further guidance. While I might not be available immediately, I’ll respond as quickly as I can when you do.