Have you been considering subletting the additional space in your office rental? Whether you’re looking to lessen the financial strain of your rent or simply occupy the unused portion of your floor-plan, subletting your office can be a viable solution for business owners in Vancouver. Before you welcome another team into your space, however, it’s important to evaluate the pros and cons that come with subletting. Below, we’ll explore some key aspects, including the pros and cons you’ll want to keep in mind before moving ahead.
Why Business Owners Consider Subletting There are many reasons businesses may consider subleasing. Whether you’re a startup that anticipates the need to relocate your offices relatively soon (within the next year or two) or don’t want to waste your budget on unused space within the office, subletting can help alleviate financial pressure and give you peace of mind.
Pros to subletting your unused office space include:
No More Dead Space There’s nothing worse than paying a premium for office space, only to have ample area left unused. If you have multiple offices or boardrooms that are empty on a regular basis, subletting can put them to good use while allowing you to enjoy the room you do use.
Networking Another benefit to subletting is that it gives you an unbeatable opportunity when it comes to interoffice networking. Choosing to sublet to another firm in a related or feeder industry can be a great way to build your resources and even provide better service to your customers.
Financial Assistance Of course, one of the most popular reasons for subletting and subleasing is the ability to earn back some of your expenses each month. While you’re unlikely to make a heavy profit (more on that below), saving extra cash can go a long way towards funding for newer businesses and can often prove to be a worthwhile experience.
Cons Now that we’ve explored some of the benefits of renting out your unused space, let’s take a closer look at some of the downsides of subletting.
What If You Need Your Space Back? This is a particularly relevant consideration for businesses facing ample growth in the near future, both in the size of their workforce or clientele. While it can be great to get rid of extra space in the short term, it’s crucial to be realistic about how soon you may need it back. After all, the last thing you want to do is find yourself feeling cramped with another firm present in the interim.
You Probably Won’t Make As Much As You Think As we mentioned above, it’s unlikely that you’re going to make any surplus profit through renting your space, typically because most traditional leasing contracts prevent you from doing so. While subletting can be a great way to ease your transition if you’re looking to move offices earlier than expected or can allow you to explore other options with ease, it’s wise to avoid thinking of it as a way of making a profit in addition to covering the cost of rent.
Consider Privacy If privacy is a concern for your business, either where products, IP, or clients are concerned, you may want to re-think subletting. Close quarters can make it hard to stay separate, even with the best efforts in place, and can often lead to unnecessary stress all around.
Damages Will Cost You Finally, as with any rental agreement, it’s crucial to be aware of the fact that you can and will be held liable for any damages your sub-letters may cause to the building or space itself. If you’re not prepared to assume the risk of damages, subletting may not be the best fit for your space unless you have ensure you have insurance coverage.
Need Help Deciding? Since stepping onto the Vancouver legal scene in 2011, Paperclip Law has sought to redefine the relationship between lawyers and their clients. We’re not afraid to put the human element back in legal counsel and believe in forming strong relationships with our clients built on a foundation of trust, handling personal matters like wills and probate to business matters like employment agreements, leasing matters, and more, we’ve got your back. Contact us today to learn more.