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Why let office space go to waste if you rent it but aren’t using it completely for your company? Businesses can sublease office space for additional revenue, much to how apartment renters utilize Airbnb to rent out their extra rooms.
1. Examine your lease.
Before going through the hassle of looking for subtenants, make sure you are permitted to sublease your office.Check your lease agreement to see if subtenants are permitted.
2. Speak with local companies.
It’s time to discover subtenants once you’ve confirmed that you are, in fact, permitted to sublet your space. Consult the nearby workers before granting access to just anyone.
3. Carefully examine the candidates.
Possibly the most crucial step is this one. It could be fantastic to have subtenants, but not if you end up with the wrong kind of neighbor.
4. Choose a leasing cost.
Due to the shorter lease and lower costs, subleasing is typically more appealing to businesses and people than leasing a whole area.
3 Benefits Of Renting Office Space
Why ought your company to think about subleasing office space? In a conventional lease arrangement, the landlord rents the space to you as the tenant. You become a sublessor and those that rent from you are your subtenants when you sublease your office space. Let’s discuss a few typical justifications for subleasing office space. We’ll also lead you through the subleasing procedure at the end. Get ready to start making rent savings!
Reason #1: There is room available that you won’t use. The easiest explanation for subletting is this. The workplace may have been the ideal size when you first leased the space, but you may have subsequently reduced. Therefore, you are paying for space that is not being used. Maybe for a while it was alright, but now that business sales are down and you’re strapped for cash. Finding a subtenant to reduce the overall rental cost may be a better option than letting the additional space go to waste.
Reason #2: You have room that you don’t yet need. It’s critical to select office space that supports business expansion. Because of this, you can find yourself renting a place with excess private offices or useful space that you can’t fill with new employees until the business starts bringing in more money a year or two later. In this situation, you might be able to find a few temporary subtenants to help you pay the rent until you can afford to hire more staff.
Reason #3: You must relocate to a different office. Most leases are for three to five years or more. You can find yourself thinking about breaking your lease if your business expands more quickly than you anticipated or if you want a change of scenery. A less cluttered and more economical alternative would be to sublease your old space to a few subtenants while you move into a better location. FLEX by PayrollBD may be advantageous if you wish to completely escape the three to five year lease term and choose a flexible, short-term office solution.
Things to Take into Account Before Subletting Your Office
Be aware of any potential risks before subleasing your office space. Before you start sharing your workplace, go over this list of factors to be sure subleasing is the correct choice for you.
You are liable for any harm.
- You are liable for returning the space to its initial state at the end of the lease because you signed the original lease with the landlord. Commercial subtenants are normally in charge of upkeep, but if they refuse to make repairs or pay for the damages, you, take over that responsibility.
- No matter what, you have to cover the rent. One of the most common justifications for subletting is to get tenants to contribute to rent, but what if they don’t? You still owe the landlord the whole sum, though.
Make sure subleasing is feasible.
Subleasing might not be practical, even if you have a few extra offices. Make sure there are accessible entrances and exits in the office area first. Second, confirm that there is adequate parking. It’s possible that the subtenants you hire later on will need more parking for clients and contractors. Third, be sure that the addition of certain subtenants won’t result in crowded common rooms like kitchens, corridors, and common areas.
Be mindful about privacy.
Employees from a different organization will frequently be in earshot if you want them to work close by. Remind your staff to only discuss critical topics in private, such as money or clients’ private information. Or, if all of this bothers you, subleasing might not be a good option at all.
The atmosphere in the office can alter.
Be sure to take this into account because subtenants will somewhat alter the space’s culture and character. Will they alter how customers perceive your business? Have they a negative effect on your brand in any way? Will they make too much noise for your staff to successfully work?
When the Tenant Turns into the Landlord
If you have carefully analyzed the advantages and disadvantages of subleasing and rigorously investigated any potential subtenants, you are well on your way to lowering your monthly rent payment and acquiring some potentially interesting office neighbors. The bottom lesson is that subleasing is a popular strategy to reduce costs, but you should always conduct research before using it.
Instead of attempting to find the right subtenants on your own, get assistance finding them. Maybe you need help drafting a sublease that works for you and your subtenants and covers all the necessary legal bases. You can also be seeking suggestions for other offices that your company could lease while subleasing the one it currently has.
If you get in touch with us, we’ll put you in touch with a tenant broker. We look forward to responding to all of your inquiries about subleasing.