A Sublease or Sublet is an agreement between a tenant and another party or a person who wants to use a part of the property. Such a party or the individual is called a sublessee or a subtenant. Subletting of properties avoids the tenant the wastage of space and in turn recovering the costs of the extra space that he is not using. With the diverse challenges in businesses and the needs of cost-saving, the subletting of properties is getting increasingly popular with big and small businesses. Browse through the properties which are now available on Sublet in Sydney and get the best property at the best rates.
Sublet Offices: Pros and Cons
The demand for sublease and sublet office spaces in Sydney has increased manifold with the growing number of start-ups and small businesses coming up. While considering to rent one of these office spaces there are certain things to keep in mind:
- Shorter Lease Terms:
Landlords and Real Estate developers have very stringent and long lease terms when trying to lease office space. Such five-year and seven-year-long lease terms are not profitable and ideal for new and small businesses as their growth cannot be predicted. As such sublease with shorter lease terms is an excellent option for small and new businesses. The reason why these sublet offices in Sydney are in high demand.
- Affordable Rates:
Sublet office spaces in Sydney are generally available below the market rates. That’s because businesses that are subletting these properties are already going through some hiccups due to which they want to save some costs. Thus negotiating with such businesses gets easier in getting the best properties at most affordable prices.
- Relaxation on Security Deposits and other financial terms:
Landlords and Real Estate Houses in Sydney letting office spaces need you to put a high amount as a security deposit. This is a huge setback for start-ups and small businesses who would otherwise have utilized that amount for other operational costs. With sublet offices in Sydney, the subtenant no longer have to keep huge sums as deposits. As such huge sums of money are saved for meeting other business requirements.
- Stringent Floor Plans and Layouts:
You don’t get the freedom to choose your floor plan or layout in subleasing. You get what you see. For any modifications as well you may not get permissions later on and hence you must make these things clear at the time of the agreement.
- The Middle-men problem:
The Tenant from whom you are subleasing the property is the middle-man and as such, you may not be able to know what are the original contract terms. Your office contract as such is not in your hands and in the eventuality of your tenants going out of business your contract may stand null and void.
As such though subletting in Sydney has great benefits, being aware of the risks is important too. Weigh the pros and cons and make an informed business decision to rent a Sublet Office in Sydney.