What is the primary benefit of a positive leasehold sublease for the sublessor?

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The primary benefit of a positive leasehold sublease for the sublessor is the opportunity to profit from excess rent. In a sublease scenario, the sublessor can rent out the property for an amount that exceeds their own rental obligations. This excess can create a source of income that allows the sublessor to benefit financially from the arrangement. For instance, if the sublessor pays $1,000 in rent but subleases the property for $1,200, they effectively generate a profit of $200 each month.

The ability to generate income through a sublease can incentivize property owners and tenants alike to utilize this strategy, especially if the market rents for similar properties have risen since the original lease agreement was signed. This financial advantage is particularly attractive during times of high demand for rental properties, allowing the sublessor to capitalize on market conditions while still retaining their original lease terms.

In contrast to this, options such as stability in rent payments, ability to reside indefinitely, and transfer of lease obligations do not directly enhance the financial gain realized by the sublessor through a positive leasehold sublease, making them less relevant to the core advantage of profiting from the arrangement.

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