Subletting Space

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Tips & Advice to help you make your decision on Subletting Space

In today's real-estate marketplace, subletting space is a viable way to obtain the property you need to conduct your business while offsetting the costs. There are a couple of ways you can go about achieving your real estate goals for your business while earning money on unused space.

When you are looking for spaces to rent, keep in mind that renting a much larger space may not increase your costs proportionately. You might be able to rent twice the space you need for less than twice the cost. Then, with some creative reorganizing, you can sublet the extra half for slightly less than what you are paying for the amount of space you are utilizing. If you combine the total, your actual rent is decreased by a certain percentage each month.

Before you decide to sublet part of your space, however, you will need to ask your real estate professional a couple of specific questions. First, are you permitted to sublet any of the space you are renting and still remain in compliance with your rental or lease agreement? Secondly, are you permitted to make physical changes to the space in order to split the property into two or more units for the purpose of subletting?

Once you have determined the answers to these questions, you can crunch some numbers and determine if subletting space in your facility will help your bottom line.

Subletting Space

If your business has more space than it needs and is looking to make extra cash, subletting space is a great option. If you sublet commercial property, you can make extra cash on unused office and commercial space.

By subletting space, you can help reduce your company's expenses. However, there are risks, so you should weigh your options carefully before your business takes on a renter. Make sure you:

1. Check your existing commercial lease to make sure that you have the right to sublet business space. You may need to work with your landlord.

2. View a sample sublet agreement before you create one yourself so that you know exactly what you need.

3. Consider working with a property manager or a Realtor to help you find the right renter.

Advertise to sublet office space to the right person

The first step to sublet business space is to find potential renters. Whenever possible, try to steer clear of Realtors as they often want a commission based on the size of your sublet commercial space. Find places where you can advertise your space for a low-cost.
Try: You can advertise your sublet commercial space at Sublease.com and City Feet. Also, at the popular site Craigslist, you can advertise for free.

View a sample sublet agreement and create your own online

After you have your renter, you need to think about the terms and conditions you want on your sublet agreement. One of the best ways to research these contracts is to view sample copies and see what kind of terms and conditions are feasible on the agreements.
Try: Check out All Business for a sample sublet agreement and at DocStock and you can search for sample agreements based on your lease terms. You can create your own sublet agreement by using the templates at Law Depot or Law Guru.

Hire a lawyer to write your sublet agreement

If you are worried about creating your own sublet agreement, or would feel more comfortable with a professional's help, think about hiring a lawyer. A lawyer will take away the pressure of creating your own agreement.
Try: Find a good contract lawyer in your area. You can find one through FindLaw.com, Legal Match.com or Lawyers.com.

If you sublet office space in your building, think of other ways you can work to save money. Perhaps the two businesses can share expenses such as leases for copiers, employee break room supplies, etc.
Your company is always responsible for meeting the rent to your landlord on your sublet commercial property. If your renter is not paying, your company is still liable.
Always do a credit check on your renters before subletting space. If they have a history of running out on the rent, you won't want them.