News Blog - Commercial
THINGS TO CONSIDER WHEN SUBLEASING
Subleasing sections of your office can be an excellent way to earn some extra income for your business and form strong new connections with complementary businesses. However, much like finding a good flatmate, there are some things to consider before sharing your space.
Are you allowed to sublease?
The first consideration is the easiest one. You’ll need to consult your landlord or property manager to ensure that you’re able to sublet part of your office space before you start making plans to do so.
To make subleasing work for you, it needs to be financially worthwhile for your business. When setting your rental rate, consider your running costs, including internet and equipment (printers, etc.), along with the current market average for similar spaces.
Be careful not to take advantage of your potential tenant. A quick online search is an easy to way to figure out if your pricing is fair, how your inclusions stack up against other spaces, and how much competition you have in the area. Businesses or sole traders that sublease are often money conscious and will certainly be doing their research. So, it pays (literally) for you to do the same.
Though a commercial sublease is typically a legal contract between a sublessor and a sublessee, as the original leaseholder, you are bound by the terms of the initial leasing contract you signed with your landlord.
When assessing the suitability of a tenant, it is crucial you do your research. Take note of what they currently do and what they’re planning for their business to ensure they are stable and will be able to maintain rental payments.
Opening your door to complementary businesses can also result in new, mutually beneficial connections.
Perhaps you’re a marketing agency that needs video production, designers, or developers? Maybe you need an accountant? Whatever your motives, subleasing is an opportunity to meet and work with a range of talented people across different industries and specialisations.
Consider your neighbours
Gwen Moran from Entrepreneur magazine notes that that speaking with local businesses may be a quick and easy way to sublease your space. Should one of your neighbours need more room, then moving a few staff members next door is much less hassle than finding a bigger office.
While this solution is likely a temporary one, it can fill the gap while you search for a permanent tenant.
Looking to sublease part of your office? TGC will take the hassle out of finding a suitable tenant, who complements your business and has the financial grounds to sublease your space. Get in touch today.