Subleasing Your #Office #Space? Here’s What You Need to Know#bangalore
Subleasing or subletting is nothing but leasing the part or whole of the property by you as a tenant to a sub-tenant!
But why would one want to sublease the office space?
Well, there are many reasons why a business owner thinks of subletting his/her office space to other businesses. Here are a few.
1. Outgrowth: When the number of employees outgrows the office space, they can’t just cut down the employees just because there’s no enough space to accommodate them. They can’t break the lease term either and move into a larger office space. So what can they do in such a case? Simple, sublease! They can simply sublet their space to any other business and move in to a large office space that can accommodate all their employees.
2. Relocation: The Company may want to relocate to a different place to avail the tax benefits or to be closer to the customers or business partners, and if the lease term is still in force, the company might think of subletting the space.
3. Downsize: Third and most common reason for businesses to think of subleasing is the downsized company. The company will have to lay off a few employees because of the poor economic conditions. This leaves a few empty places at the office which makes them think of subleasing.
So, if at all you’ve made your mind to sublease your office space, here’s what you need to know.
Determine if you’re allowed to sublet
First thing you need to make sure as and when you decide to sublease the office space is to determine if you’re allowed to do so. All the lease terms will have a separate clause for sublease if you are allowed to let your leased property to a sub tenant.