Subletting Office Space

Renting Your Spare Office Space

Are you considering renting your spare office space?  If you have spare space in your office and your rent is high, you could share the space and rent by subletting.  There rules to subletting. Rule number 1: you need permission from your landlord. Rule number 2: your leasing agreement needs to include a subletting clause. Rule number 3: you need a commercial property solicitor to draft a subletting contractual agreement. 

What Is Subletting?

As the tenant of the property, you will grant the right for someone to lease part of the property – borrowing space or subletting it.  You could have one or several subtenants.  Your lease agreement should stipulate if you are allowed to sublet and how many people you can sublet your space to.

Are You Allowed to Sublet?

Be sure to not only get the landlord’s consent to sublet, but also to have it in writing by way of an update on your lease agreement.  In other words, you need to insert a subletting clause to your lease agreement with the landlord.  This clause should not prevent or restrict you from sharing with another business.  Make sure you obtain consent from the landlord in writing prior to subletting.

  • Here are points to consider:
  • How much will you charge for rent
  • What will be included in the rent charge
  • How utility bills shall be paid – share the cost or include a flat fee in the rent charge

Subletting Contractual Agreement

You need a contractual agreement with the person or company subletting your space. This agreement will be separate from the lease you have with your landlord. You need to define a specific area for the lessee’s workstation. Your contractual agreement with the lessee needs to be precise and cover such as areas as interest on overdue rent payments, rights given to the sharer of the space, how utility bills will be paid and termination of the lease.

Please give us a call if you are thinking of subletting part of your office space.  We can help you with negotiating with your landlord, amending your lease agreement and drafting a contractual agreement with your lessee. SG

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