Some Considerations before Subleasing any Office Space

Getting office spaces don’t always have to be a long-term commitment. Subleasing is a very good option, most especially if you are running a small business that’s transitioning from being home-based to brick and mortar. Most rates today are very attractive given any amount of space that you need. Here’re some things you need to know on subleasing before signing that contract.

Consider How much You Need to Pay

A business or company that’s subleasing their space to you is free to charge any amount for rent, theoretically. Technically though, there might be some clauses in their contract with the landlord that might limit their rights to charge for rent. This, however, is not much of a concern for a subtenant such as yourself. In any case, you will be paying less than what the tenant is paying for the space. Moreover, in most parts of the country, the demand for space is so low that a tenant can provide lower rates for rent and are getting more consideration from their landlords. Whatever the case may be, always make sure to look around the market first and keep on negotiating until you get rates that will most suit your budget.

Consider What’s Part of the Package

Aside from the amount of space and sublease terms, another thing that you might want to consider before taking on a contract is what things are included in the package. These can range from parking spaces, use of facilities like the office break room, meeting rooms, and even the use of office equipment.

Another important consideration is that you would need a clear understanding on what your responsibilities are when it comes to repairs. Most of the time, you will be responsible for minor repairs like replacing light bulbs, but the major problems like cracks on the walls, leaks on the roof, or peeling paint are often left to the landlord.

If part of the package also includes a separate entryway leading to your office or a formal divider between offices, always check and make sure that everything in your area of responsibility adheres to all building codes. If there are no separating fixtures, always make sure that there is an understanding of what common areas or equipment you or your employees have access to.

Most of sublease offers also covers other features like security systems and Internet services. This is always to your advantage as you don’t have to set-up your own services or contract other companies or providers to set-up your business for you. Most sublease offers are already ‘plug and play.’

Before Taking on the Offer

Always make sure that you have a lawyer who’s knowledgeable in real estate law. You can have this lawyer review the lease agreement between the landlord and the tenant to ensure that  the tenant has the proper right to offer a sublease agreement to you. Moreover, make sure that you are protected against eviction because once the original tenant gets evicted, you also go along with them.  Through a real estate attorney, you can find out what can happen if the property becomes foreclosed due to the landlord’s inability to pay the mortgage on the property.

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