Tips – sublease an office

Tip #1: Check with Your Landlord

The first and most important step is to go back and read your initial lease to make sure that subleasing is permitted. Some landlords refuse or restrict subleasing; or they might want to control the types of tenants who occupy the spaces within their building, or maybe they don’t want to have to compete against their own tenants for new occupants.

Even if subleasing is allowed, your landlord may want a say in the type of business you sublease to or the rent you charge, and they might also reserve the right to approve or reject prospective tenants. Whatever you do, never assume that subleasing is OK with your landlord.

Tip #2: Look at Your Existing Space

Not all unused office space is suitable for subleasing. Consider whether it will be practical for another company’s workers to enter and exit the space, for example, as well as how a tenant might use the space and whether the company’s activities might cause disruptions to your business operations. That’s especially true in cases where you’ll have to give a tenant access to shared facilities like bathrooms, parking spaces, and break room areas.

Tip #3: Communicate with Your Neighbors

As a courtesy, it’s a good idea to let your immediate neighbors know that you plan to sublease the space and what type of business you will sublease to. This enables them to plan for potential disruptions and share their concerns with you before these erupt into full-scale disputes.

It’s also helpful for your neighbors to know that they’ll see new — and unfamiliar — faces coming and going from your office area. After all, the last thing you want is for your new tenants to find themselves being questioned by the police!

Tip #4: Pick a quality sublessee

If you will be neighbors with your sublease tenant, make sure it’s a business you can live next to. Find out if the tenant will be quiet or noisy, and learn as much as you can about its business operations. Will it attract a steady stream of customers and clients? Does it plan to keep unusual hours? Will the company operate any loud or intrusive equipment? And perhaps most important, will its activities comply with local laws and regulations?

Finally, remember to check a potential tenant’s bank and credit references to make sure it’s financially sound. Your new tenant won’t benefit your bottom line if it turns out to be a deadbeat

Tip #5: Plan for the Future

While you may not need the space right now, that could change if your business grows and you hire more employees or add more office equipment. Keep this in mind as you plan the terms of the sublease contract. A shorter sublease term will give you more flexibility, but shorter terms usually command lower rents. Conversely, if you’re comfortable with a longer term sublease, you may be able to charge a higher rent.

March 21, 2017 Facebook Twitter LinkedIn Google+ OpenSpace3