In: Operations Management
Oliva rented an apartment from Bahama Beach Apartments from August 2016 to July of 2017. Oliva got a job in a different city and subleased her apartment to Precious from January 2017 to July 2017. Precious moves in January of 2017 pays rent directly to Bahama Beach Apartment for two months. Bahama Beach Apartment sues Oliva for the amount due. Using IRAC determine if Oliva is liable for the remaining rent.
Subleasing the property to a third person does not relieve the original tenant from its obligations towards the owner of property as per the provisions of lease between him /her and the owner. In this way, in the event of the breach of contract by subtenant, the tenant will be responsible for payment of rent to the owner and fulfilling other obligations.
Application of IRAC to the case.
Issue - Whether tenant is liable to the owner of leased property for unpaid rent by a person to whom the property was sublet by the tenant.
Rule- The original tenant is liable to the landlord of property for the unpaid rent or any other dues by the subtenant to whom the property was subleased by the tenant.
Application. Since property blonging to Bahama Beach Apartment was subleased to Precious by the original tenant Olivia, she is liable for unpaid rent by Precious to the premise owner.
Conclusion - Olivia, being the original tenant of the Bahama Beach Apartment is liable for the unpaid rent by the subtenant.