Renting out office space is a winner for both landlord and tenant. If you have an office that isn’t in use, then by renting out your office space to someone who needs it, at a suitable fee, can be a great way of making extra income for you. Plus your tenant gets a comfortable space to work in without the hassle and financial commitment of renting out their own office.

If you’re thinking that sharing your office space is something you’d like to do to make some extra money, then there are a few things you should consider first.

1.  Make sure that you rent out your office space at the right price.

If a small business can rent out complete office space at considerably lower rates than the cost of sharing your office space, then there is no reason why they will share office space with you.

You must make your target rent a step below renting out a complete office.

2.  Outline what facilities you are providing with your rental office space.

The price you charge for renting out your office space will depend on what facilities you are making available. Does you office share include the use of the office printer, photocopier, internet, telephone line(s), etc.?

If you’re offering more than just the basic facilities, such as cleaning services, then of course you can charge more in rent for your office share.

3.  Consider whether you and your tenant will have enough privacy.

Will the small business which rents out your office space have enough privacy to conduct their business affairs? And are you happy with a stranger in your office space, who may overhear the ins and outs of your business?

Make sure that you make some private space for your prospective tenant. Plus you can protect your business interests by getting your tenant to sign a non-disclosure clause (included in Lawpack's Sharing Office Space Rental Agreement).

4.  Make sure that your office space meets the needs of your new tenant.

To meet minimum workplace standards, make sure that your office space meets the basic standards of comfort; for example, by providing tea and coffee-making facilities and clean toilets. If your new tenant is a woman and your office is staffed entirely by men, do you have the adequate toilet facilities, for example, for your office sharer?

Health and safety law must also be followed so make sure that you carry out a risk assessment of your office space. Ensure that the office space meets fire safety standards and report accidents in the workplace to the relevant authorities. Also, make sure that all IT equipment is used safely.

Find out more about meeting health and safety law in the workplace.

5.  Make sure that you get your office sharing agreement in writing.

The most important thing you can do when renting out your office space is to make a signed rental agreement with your new tenant. It’s vital that you get the following points in writing:

• When rent is to be paid
• The payment and repayment of the deposit
• The condition of the office space
• The use of office furniture
• The rights of the landlord
• Access to the rental property
• Confidentiality of each party’s business affairs
• Indemnity of the tenant

You can get it in writing now with Lawpack’s Sharing Office Space Rental Agreement – available to download now.

Further Information
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Article: Buy-to-let landlords: how to make a profit from the credit crunch
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