There has been an increase in interest lately about office sharing. As a business owner in the present economy, you may find yourself in situation where you have extra space that you are not currently utililing. It may be because you had to downsize recently or perhaps you leased the space with the anticipation of growth and now you'd simply like to cut back on your expenses. Whatever the reason, it could be a great option to bring in some extra cash flow.
The first thing you need to do, is check your lease for a sublease clause. The language should read that as the Tenant, you have the right to sublease your space with the Landlord's approval. If this clause is not present in your existing lease, then you will need to talk with your Landlord and get approval before proceeding.
In this situation, you will become the Sub-Lessor and your new office mate will become your Sub-Lessee or Sub-Tenant. The Sub-Tenant will pay their monthly portion of the lease to you. It is extremely important to remember that you will continue to be responsible for making the lease payment in full every month to your Landlord, even if your Sub-Tenant fails to pay you his/her portion of the rent.
Once you know you are able to proceed consider working with a commercial real estate broker and have them assist you in finding a sub tenant. It would be beneficial to find an office mate who's business compliments yours. This way, not only do you improve your bottom line in regards to your lease payments, but you may be able to collaborate on projects together.
Once you identify your sub-tenant and get your Landlords approval, it's vital to get the relationship off on the right foot. Put a sub-lease in place and use a real estate attorney for legal terms! Both you and your sub-tenant need to know and understand what your obligations are to each other and the best way to do that is to put it in writing.
Here is another post on the topic, by WomenEntrepreneur.com
Please don't hesitate to send me your additional thoughts.
Be well,
Rhonda
Monday, October 12, 2009
- In: Office mates, Office sharing, Sub-Lessee, Sub-Lessor, Sub-Tenant
- Posted By: Anonymous