Office share agreement

You may have some spare office space that you believe you can share with another business and so ensure the space pays for itself.  Use an office share agreement to set out the arrangements. Great care needs to be used when setting up such an arrangement, not least so that you don’t inadvertently set up a lease instead. This would be disastrous, because the occupier would have rights and it may prove tricky to then get them out.

Ensure it’s a licence

The key to getting this right is to make sure that you set up a licence, not a lease. Make sure that you make it clear that you can change the space they use at any time and that they don’t have any formal interest in the property, e.g. don’t refer to any payment as rent, but as a licence fee etc.

Things to think about before you start:

• who wants to share the space - you as owner or your tenant?
• where is the space? Use a plan to show this
• what facilities are you providing with the space? Photocopying, Internet, telephone?
• how long will the arrangement last?
• how much will you charge?

If you are a tenant rather than a freehold owner

You will need to check the lease for anything stopping or restricting you from sharing the property with another business. Any well drawn up lease is likely to restrict this or stop it altogether. Don’t attempt to do this behind your landlord’s back if the lease prevents it.  Doing so could mean that the landlord will forfeit your lease.