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Updated on May 5th, 2022
An office rental agreement is a leasing document signed after a landlord agrees to rent out an office or co-working space to a tenant for a certain length of time. The contract can be used for arrangements of all sizes, ranging from the rental of a single room to an entire building. The obligations and responsibilities of the tenant often increase proportionally to the amount of floor space they rent. Renting an entire building, for example, may involve establishing rules on parking, signage, repairs, the roof, and much more. Whereas the agreement for renting a single room may contain stipulations on what furniture can be brought in, what modifications can be made, and other less stringent conditions.
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Download: PDF
How to Rent Out Office Space
Whether you’re a business that has extra office space to rent or you’re the owner of a commercial property looking to find tenants, renting out office space is a relatively straightforward process.
Can you rent it out?
If you’re currently renting office space, you’ll need to check the lease to see if it permits subleasing. If it’s not covered in the contract, you can most likely sublease legally. However, the landlord should be contacted to inform them of your intent to lease a portion of the office. This allows everyone to be on the same page and avoids unnecessary confrontation later on.
Prepare the space
The following list should be referenced to ensure the office is ready to be rented:
- Clean the whole space.
- Check that all outlets are in good working order.
- Ensure bathrooms are accessible.
- Install wi-fi (or if already installed, make sure it’s working properly).
- The space must have its own door (or a means of ensuring privacy).
To increase its desirability, the lessor should consider furnishing the space (desks, chairs, etc.), providing storage, including access to facility amenities (if not already included), and so on.
Set the price
Determining an attractive, yet reasonable price for the office is oftentimes the most important factor. The rent needs to be able to cover all expenses while remaining cheap enough to attract potential tenants. It’s best to begin with expenses and then add on a supplemental fee to account for profit. This prevents the landlord from agreeing to a deal that results in them losing money due to expenses they didn’t consider.
Draft the rental agreement
The office rental agreement is used to cover the specifics of what the tenant can and can’t use the space for. It includes the rent they’re obligated to pay, the security deposit (if any), what insurance(s) they need to purchase, how they can go about using the space, what utilities they’re responsible for, and clauses used for protecting the liability of the landlord and the tenant.
Advertise it
Once the space has been prepared, it’s time to make it known to potential tenants. Listing online is the easiest option, as the pool of users is extensive, ads can be edited on a moment’s notice, and there are numerous platforms one can choose, including the following popular options:
Adobe PDF
Microsoft Word
OpenDocument