Do you have too much office space or too little and do you have to move your company? In either case you have surplus office space that weighs heavily on the budget. What do you do in such a case? Sublet your office space!
Subletting your office is the most obvious option. However, this cannot be done just like that. There are various considerations and steps that need to be taken. Flexas.com will be happy to help you relieve this burden. So follow the next steps from our infographic! Want to know more?
Step 1: Subletting starts with the rental agreement!
In fact, it is always important to be prepared for the need to rent out your office or part of it. Maybe your company is undergoing an unprecedented rapid growth that was not expected. Too little office space puts pressure on the operating result and slows down growth, because employees are too close together and new employees have no place to work. Too much office space is simply a shame, because it entails unnecessary costs.
"Subletting office space? Make sure the lease agreement includes an exit strategy. In which you have a short notice period or at least the possibility of subletting with a third party".
Step 2: Considerations and restrictions when subletting office space
Do you have such an exit strategy in your lease or not? It is always important to contact the landlord. Sometimes they still have candidates for the space and the landlord always has to give permission for subletting. Time is not on your side, should this situation come close, it is important to act quickly.
Important to know!
The shorter the rental agreement, the less it is worth for subletting.
The longer there is vacancy, the longer you overpay for the office
The financial health of potential subtenants is tested by the landlord. This can be a problem, because not all subtenants are in good shape.
Restrictions can vary greatly from landlord to landlord. For example, there are sometimes restrictions regarding subletting to existing tenants or potential tenants from the landlord.
Tip from Flexas.com:
"Always consult with the landlord before subletting the office space."
Step 3: Be prepared to make the costs
The sun rises for nothing. Subletting the office will incur some costs. As (sub)landlord you are responsible for these costs:
- Brokerage for the intermediary or broker who brings in a tenant
- The difference between the original rent and what the subtenant pays
- Possible marketing costs
If you want to rent out your office space quickly, it is important to find an expert in this field. It is quite difficult to find a tenant for a specific size of office. Flexas.com will gladly help you with this! As an online mediator we have hundreds of current searches. Moreover, it is based on No cure - No pay. So free promotion of your office on our website! As an online mediator, our brokerage fee is also a lot lower than with estate agents. You only pay if there is signed rental agreement, only then do we charge 10 percent. It is also possible to opt for extra exposure.
Step 4: Determine the rent and keep the momentum going!
It is now clear that there are costs involved in subletting office space. In most cases you will have invested in the office space. You can almost immediately forget this investment. In general, a subtenant is not interested in sharing. Also keep in mind that you always go to the owner/landlord of the office prior to a renovation. If you upgrade the space, they are sometimes willing to share in the costs.
Therefore, do not let the aforementioned costs play a major role in determining the rent and other agreements. A subtenancy situation offers the subtenant fewer advantages than renting directly from the owner. You will therefore have to apply a competitive rent. Our advice is about 15 to 20 percent below the current market value. With a bit of luck, you will pay less than this amount yourself, because the lease was concluded some time ago. However, it may also be the case that you have to make up for something yourself every month. However annoying it may be, you won't have to pay the full costs.
Tip from Flexas.com:
"Don't wait too long. Is the office getting too small? Then get straight to work! A long lease is worth more to the subtenant. Don't be too critical of the offer of a potential subtenant. You have a lot of competition from other landlords.
Step 5: The agreement
Send the (sub)tenancy agreement to the tenant you found in good time. It can take a very long time before agreement is reached on the conditions. The sooner the agreement is with the potential tenant, the sooner you know if there any obstacles on the road.
Let the sublease begin!
Although it can be difficult to find a subtenant, this step-by-step plan provides some explanation and guidance. Want to know more about subletting? Please contact us. Our office space specialists are always ready to help you!