If you are looking for a new office space for your business, you may have come across the option of subletting. This article explores what subletting is and whether it is a good option for you and your business.
What is a Sublet Office Space?
A sublet office space is where a tenant of an office decides to rent their own space out to another tenant. The original tenant may or may not remain in the office while it is being sublet, depending on whether it’s a ‘shared office’ agreement or not.
Why Do People Sublet Their Office Space?
Subleasing/subletting office space provides the tenant letting out the space with extra income for space they may not be utilising, which may otherwise be sitting empty.
What is the Advantage of Renting a Sublet?
A sublet is typically cheaper than renting an office from a professional landlord and depending on the terms of the agreement, a company may end up sharing space with an organisation in the same industry.
What are the Reasons to Avoid Sublets?
At FreeOfficeFinder, we’ve had many calls over the years from organisations vacating sublets. We have heard the following reasons as to why they are looking to move from sublets into a serviced office, or any type of office direct from a landlord.
1. Limited Occupation
Companies subletting space will always have that extra space for a reason. Often it is because they have had to reduce staff numbers due to financial difficulties. If they default on the agreement with their landlord and are forced to vacate, that could leave them immediately without an office.
The reverse is sometimes the case. Companies may rent larger offices where they intend to grow into that space. Again, that may result in them needing to take the space back when they want it, not when you are ready to leave.
If sharing space, a sublet is typically less secure than your own private office. Most companies value their own and their clients’ privacy. When you share a working environment with another company they have access to your IT infrastructure, any private correspondence you have, and your physical space.
Depending on the office, people in sublets often find that their brand or company may be overlooked when clients come to visit. They often find that being in a sublet can appear to be an impermanent solution for office space which may discourage potential clients.
Professional landlords put a great deal of care into the service they provide and their reputation. Sublets, on the other hand, can often end in disputes between both parties ranging from non-permitted use of facilities to poor housekeeping to rent charges being changed at short notice.
There may even be hidden dilapidations that the main tenant is obliged to pay that you could be billed for without warning.
5. Legal Ramifications
Only certain properties are legally allowed to be sublet. Should a company you are subletting from be breaking the law in subletting to you, you may also be breaking the law in taking the space.
Whilst subletting an office space may be a quick and cheap idea, there are several reasons why it may not benefit your organisation. From legal disputes to security and privacy issues, subletting comes with a range of risks that may outweigh its benefits. In most cases, making the effort to search for your own private office will save you from future issues and give you greater peace of mind.