Business owners choose to sublet office space for numerous reasons. As a business owner, you could be considering subletting space because you found a different office that you want to transfer to. You could have started using a job costing system that helped you grow your business. Now, you cannot fit in your office space. If your lease is not up but you still want to move, subleasing is a great option. Some business owners sublet space because they are downsizing. If you are paying for more room than you are using, you could benefit from subleasing. Whether you are downsizing or moving, read on to learn how to sublet office space and increase your income.
Firstly, determine how practical subletting your space is. Consider features like office space entrances and exits. Spaces without easy access to doors and windows do not sell well. In addition to these features, keep parking conditions in mind. If you sublet office space, you could overflow your office building’s parking lot. Your tenants could need space for their own cars as well as any customers or clients who visit them. When sublessors bring new businesses into the office, they also deal with overcrowded common areas. Ensure that your overall space is large enough to occupy tenants. Then, continue on in your sublet office space journey.
Speak To Your Landlord
Once you decide that subletting your extra space is a good idea, you need to meet with your landlord. You might find out that your lease agreement prevents you from subleasing space. Some business owners overcome many lease agreement obstacles to earn subleasing rights. Others receive the “okay” from their landlords easily. If your landlord agrees to let you sublet office space, they might negotiate a deal. Many landlords want to split tenant payments with the sublessor. In order to sublet office space and earn a profit, you need to prepare for negotiation. If you have used negotiation tricks to lease a vehicle, apply similar tactics when trying to lease your office space.
Interview Real Estate Brokerages
You can also apply your negotiation skills to the tenant-finding part of subletting office space. To ensure that you agree to fair terms, find a reputable real estate brokerage. They assist sublessors in examining the market and finding interested business owners. Professionals advise sublessors to interview multiple real estate brokerages before choosing one. Ask brokerages questions about their experience in the subleasing field. Then, inquire about their insight into the market and where it is headed. By asking interview questions, you will find a helpful real estate broker to sublet office space.
Calculate An Asking Price
Another crucial step to sublet office space is to calculate an asking price. You want to put your space up for as high of a price as possible. In doing so, you can avoid taking a business loan. Instead, you will have the financing you need to grow. Understand that certain features directly effect cost. For instance, the amount of time you plan to sublet your space impacts the price. When sublessors offer spaces on shorter terms, less tenants show interest. After all, they do not want to have to move out of a space right after they move in. Consider the average market price for the amount of space as well. If you ask a much higher price than another sublessor in the same area, tenants will flock to their space. Calculate a fair asking price to sublet office space and earn a profit.
Create An Agreement
Additionally, you need to create an agreement in order to sublet office space. Standard commercial sublease agreement are comprised of numerous factors. They include terms, payments and the location of the property. Also, include how much needs to be paid for utilities and services. List contract termination expenses such as collection, cleaning and lawyer fees as well. Complete your agreement by providing contact information for both parties involved. Then, you can legally sublet office space.
Regardless of why you want to sublet office space, you need to do so in a way that is both legal and profitable. Begin the process by ensuring that it is a practical decision for your space. Then, speak to your landlord to ensure that they allow subletting in the building. If you gain approval, start interviewing real estate brokerages by asking questions involving their experience and their market knowledge. With their help, calculate a fair asking price that prospective tenants will be attracted to. Lastly, build a standard commercial sublease agreement. Increase your income by following these steps to sublet office space.