This blog post was originally published by SVN | Alta Commercial
For many businesses, the option of subletting a portion of their office space sounds desirable. From the money received, from the rent of the other business, it can help offset the cost of their own lease. However, the decision to sublease office space is not always as desirable as it may seem. In some instances, it is an excellent option, whereas, with others, it should not be done. Let’s discuss when you should consider subletting your office space and when you shouldn’t.
When Subletting Your Office Space is a Good Idea
There are many great reasons to think about letting your office space. After all, you can save a significant amount of money when you let another business into your space. Below, you will see some of these great reasons to welcome another business into your office space.
Have you recently downsized your business? Or, perhaps you have allowed some employees to work from home. No matter the situation, downsizing your on-site workforce can create a great deal of room. So, if you have enough room in your office space for another business to move in, consider subletting your office space. Even if you only have five to ten desks open, it may be the perfect size for a small start-up. Anything you make from their rent can help minimize the costs of your own space, which is very helpful.
When You Have a Large Amount of Extra Space
Many businesses decide to move into a larger office space that they can grow into. This is an excellent idea as it can save a great deal of money by avoiding moving the entire office later on. However, this can lead to office space that is not used. This can either waste money on rent, or you can sublease the space to another business. If you decide to sublease your extra office space, be sure to design the space to separate the two businesses. This means you should seclude the extra office space for the business that will be subletting your office space. Perhaps building a wall or setting up a temporary barricade can seclude the two businesses well.
When You Are Moving to Another Location
Some businesses grow out of their space before their lease is up. While this is a sign of a successful business, it can still cause a problem with getting out of your lease. An excellent option for moving into a large space early is by subletting your office space. Lease the entire space to another business while your business moves into a larger location. Although this does not get you out of paying for your office space, it should cover what you owe your landlord for the time being.
When Subletting Your Office Space is Not a Good Idea
Despite sounding like a great money saver or a way out of a small space, not every business should sublease their office space. There are some instances where it is not a good idea to do this. At the end of the day, if you are ever unsure about subletting your office space, it is a good idea to contact your lawyer. Have them look over your lease and the laws in your city to make sure you are following the laws and your contract.
If Your Lease…
Read the rest of this blog post here: https://alta-commercial.com/2020/05/subletting-your-office-space-should-you-do-it/