The sublease

In this course we have discussed several options for running your business, such as working from home, renting a virtual office or a commercial space. However, there are other alternatives available. During this lecture, we will explore the possibility of subleasing to another business or sharing a space with another company as leasing partners, as well as discussing business incubators.

We will focus specifically on subleasing with another business. If your space requirements are limited, you may want to investigate the possibility of finding a business with additional space and supplies that you can lease directly, especially after the 2020 pandemic when many businesses had to downsize or had no growth.

Plus, by subleasing extra space, you can help those businesses earn additional revenue while helping entrepreneurs like you. Even before 2020, this type of subletting was already quite widely used, which mostly at night and on weekends.

For example, if you would like to rent a place to perform acupuncture and massage, you could rent a place for weekend use only. Especially, when you know in advance that you are not going to perform any of these tasks during the week. I recommend that you do not limit yourself and if you find a place with the ideal characteristics for your business, try to make inquiries, even if they are already occupied.

If, for example, you find an office for a law firm, where they have a room that they rarely use, you could sublet it to meet with clients for a short period of time, a few times a week. Especially when you don't want to hold the meetings in your home or in a public place, as this will detract from your professionalism.

Tips when subletting space

Here are some basic suggestions on the features you should pay attention to when trying to find a place to sublet:

• You should always keep in mind that the space should possess an image of professionalism, both for you and for your clients.

• You should not go overboard in the above aspect, as you do not want the office to convey an air of rigidity and inflexibility.

• You should check that the location offers enough privacy for the actions you are going to perform in the company. Especially if you are a life coach, as people usually touch on personal issues during their sessions.

• Check also, if the space already has the necessary means for you to do your work or you need to bring them from somewhere else.

• An important aspect is also whether the landlord allows you to place signs or advertisements of your business, so that your business is recognized in the location.

• When sharing space with another business as co-tenants, it is important to ensure that all details are set out in a written legal agreement, separate from the lease with the landlord. It is important to ensure that all parties involved sign the agreement.

• This agreement should include details such as responsibility for paying rent, how common spaces such as conference rooms will be shared, who is responsible for the ownership and rental of any equipment in the building. Also who will be responsible for cleaning and maintenance of the facility. It is important to have everything in writing when considering this option to locate your business.

The above are not the only aspects you should consider when looking for a space to sublease, but they are some of the most important and should not be forgotten.

Advantages of subleasing

When considering other options for leasing space, partnering with another company can be an excellent alternative. Especially for those businesses that are just starting out, this option can provide an economical solution.

In addition, if the business with which the space is shared is complementary to yours, it can provide an additional service for clients. For example, a health coach who has his or her office in a dance studio creates an environment in which health and fitness related services are provided.

In terms of space requirements, a co-location arrangement may be ideal for businesses that do not require a lot of floor space. Finding a 1,000-square-foot space to share between two or three businesses may be easier than finding a 500-square-foot space for each. In addition, for smaller businesses such as an online coach, finding a 200 square foot space can be even more challenging.

There are several benefits for independent entrepreneurs when opt