What is Office Subletting? The Ultimate Guide

Letting office space could be intimidating, especially to companies who do not have prior experience with subletting. To help with the hassles and put such firms at ease, we bring to you the seven easy steps that will walk any firm through every phase of subletting. Be it a startup or an established concern, this in-depth guide is sure to help your business undertake subletting with utmost confidence.

What is Office Subletting?

Office subletting is when a tenant rents out their rented office space to another business or person for part or the full remaining term of a lease. This allows the original tenant to offset some of his rental costs, although he will still be liable for the lease agreement with the landlord. Subletting can thus be helpful when there are changes in requirements or needs of the business, and it has underused space available, or it needs to offer others an easier way of working. However, adherence to the terms of the original lease is very important since many such leases have certain restrictions on subletting.

Check Your Lease Agreement

Before you consider subleasing your office space, it is a good idea to look over the general lease agreement you signed to ensure subleasing is permitted. Many landlords and property management companies insert provisions regarding subletting, including a subletting fee, timeframes for subletting, or permission of other subletting. Others may limit subleasing to businesses of a specific type or that the subtenant must meet particular financial or operation thresholds.

If subletting is prohibited, then it will be to your benefit to request a written permission from the landlord, explaining the reasons and any benefits that may arise from subletting. This could involve the utilization of excess space, an extra stream of revenue, or synergy with other professionals who share similar interests.

Determine the Space You Want to Sublet

After getting approval to sublet from your landlord, the next critical step would be to truly analyze the subletting space. Take a minute to seriously consider your office space and what areas are currently unused or underused. This might mean evaluating corners, alcoves, or other nooks and crannies not being maximized, or even furniture or equipment that would be able to be relocated in order to get the most square footage possible.

Are these areas suitable for subletting purposes? For example, one can consider if the areas have natural light or other essential facilities such as access to restrooms or common areas. Added to that is assessing the aesthetic value, ambiance - for tenants will want to rent an area where they will feel comfortable working.

Set the Rent Price

While coming up with the right price one would charge in rent for your sublet space, consider a few things. Location of the space—the price will vary depending on the place. So, is it located in a nice neighborhood? Is it close to the city transportation system, restaurants, or shopping centers? These are all things people would want to consider in choosing a rental.

Consider the size and condition of the space. Will there be enough square footage to live comfortably? Are there any special features or amenities that really make it stand out? Consider these factors when coming up with a rent price.

Advertise Your Space

Use online classifieds websites, social media, and word-of-mouth referrals to alert interested subtenants to the availability of a sublet space.

While listing your space, add clear and good-resolution photos of the place that highlight its features and what make them so appealing. Do include an itemized description of the available amenities like bedrooms, bathrooms, and other extra perks such as a balcony or a gym.

Screen Potential Tenants Carefully

When potential lessees call to ask questions, be prepared to interview them for the right space and your business. Take a little time to ask these prospects a series of questions: Who are they serving? What type of industry are they in? And where is their business going? Besides, seek detailed information regarding sub-leasing an office space - for example, due to expansion or cost factors.

Create a Sublease Agreement

Before finalizing any agreements, it's always critical to have a detailed sublease agreement spelling out the terms and conditions of the subletting. It will lay down the duration of the sublease, commencement, and conclusion dates, and what rent actually is, including all extra fees or charges. It is also important to specify utilities and amenities to be provided, such as electricity, water, internet access, and any parking facilities.

Prepare the Space for Subtenants

Once you have found the perfect tenant for the space, integration on the whole must be done in the area for the subtenant. A thorough clean and maintain must be done to give it a pristine environment. Carefully look through every corner so that everything is in perfect working order. Give importance to dusting, vacuuming, and polishing of the surfaces to make the environment warm and professional.

More than that, arrangements and installations of any special equipment or furniture, as may be required by the sub-lessee for the smooth running of their business operations. Be it the installation of special machinery or laying out ergonomic furniture, the idea is to provide an enabling environment. This may involve consultations with the sub-lessee to understand their requirements and make all necessary arrangements.‍

If you are searching new office space for your business, let's take a look to one of our spaces in Hermosa Beach, El Segundo or Manhattan Beach.

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