What does a non-assignment clause do in a lease agreement?

A non-assignment clause in a lease agreement explicitly prohibits the tenant from assigning their lease or subleasing the property without obtaining consent from the landlord. This provision is important because it gives the landlord control over who occupies their property, ensuring that the tenant meets certain standards or qualifications that the landlord requires. It also protects the landlord's interest in maintaining the property's condition and upholding the terms of the lease, which may be fundamental to their investment strategy.

When a landlord can approve or deny an assignment or sublease, it allows them to maintain the integrity of the tenant mix and manage any risks associated with bringing new tenants into the property. This can help in avoiding potential disputes or issues that could arise from having an unapproved tenant. Such clauses foster a clear understanding between the parties regarding the rights and responsibilities associated with the lease, enhancing legal clarity and expectations.