Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

In a sublease with a positive leasehold, the sublessor is the one who typically benefits from the excess rent. This occurs when the sublessor leases out the property at a higher rate than they pay for their original lease with the lessor. The difference between the rent received from the sublessee and the amount owed to the lessor is the excess rent that the sublessor retains.

The sublessor maintains the primary lease with the lessor and has the right to sublease the property, often negotiating terms that allow them to profit from the arrangement. This situation is beneficial for the sublessor, as they not only cover their lease obligation but may also generate additional income while allowing the sublessee to occupy the space under the sublease agreement.

Other parties, such as the lessor or the broker, may play important roles in the transaction, but they do not capture this excess rent unless otherwise specified in their agreements. The sublessee, while they gain the right to occupy the premises, does not receive financial benefit from any excess rent beyond what they have agreed to pay the sublessor.