Yes, you can share your leased office with another company through various arrangements, but success depends on your lease terms and landlord approval. Office sharing differs from subletting and often provides more flexibility for modern collaborative working.
| Shared Costs | Typical Split | Your Responsibility | Their Contribution |
|---|---|---|---|
| Base Rent | By space ratio | Full liability | Agreed portion |
| Service Charges | Equally | Full liability | Monthly payment |
| Utilities | By usage | Full liability | Proportional share |
| Insurance | Risk-based | Full liability | Risk contribution |
What Types of Office Sharing Arrangements Are Available?
Three main types are available: licence agreements, partnership arrangements, and collaborative workspace agreements. Unlike subletting, these don’t create landlord-tenant relationships but establish usage rights and cost-sharing.
Office sharing options include:
- Licence agreements granting usage rights without tenancy
- Partnership arrangements involving formal business collaboration
- Collaborative agreements for flexible, temporary sharing
- Hot-desking arrangements for occasional use
Choose the arrangement that best matches your business needs and lease restrictions.
Do You Need Landlord Consent for Office Sharing?
Yes, most leases require notification or consent for office sharing arrangements. The specific requirements depend on your lease’s ‘user clause’ and ‘alienation provisions’ even when arrangements don’t constitute formal subletting.
Check these key areas in your lease:
- Whether usage is restricted to your company exclusively
- If shared occupation is specifically permitted
- What notification or consent procedures apply
- Any restrictions on the type of businesses that can share
Modern leases increasingly include ‘co-working clauses’ that accommodate sharing arrangements more easily than older lease forms.
How Do You Create a Fair Office Sharing Agreement?
You create a fair agreement by defining everything clearly from the start and documenting all responsibilities. Successful office sharing requires agreements covering space allocation, cost distribution, and operational responsibilities.
Research indicates that 84% of office sharing disputes arise from unclear space boundaries and cost allocation disagreements.
Essential agreement elements:
- Clear space boundaries between shared and exclusive areas
- Fair cost distribution based on space usage and benefits
- Management of common facilities like meeting rooms and kitchens
- Security, visitor, and delivery management procedures
Document cleaning responsibilities, equipment usage policies, and after-hours access arrangements to prevent conflicts.
What Are the Financial Benefits and Risks of Office Sharing?
Office sharing can reduce your rental costs by 30-50%, but you remain fully responsible for all lease obligations. Shared expenses typically include rent, service charges, utilities, and maintenance costs.
However, late payments or damages from your sharing partner become your liability under the head lease.
Consider requiring:
- Monthly payments in advance from sharing partners
- Security deposits to cover potential defaults
- Regular financial reviews to ensure fair cost allocation
- Clear procedures for handling payment disputes
What Legal Protection Do You Need for Office Sharing?
You need comprehensive indemnity clauses and clear termination procedures to protect yourself. Include protections against costs arising from the other company’s actions and establish notice periods that align with your head lease.
The average legal cost for resolving office sharing disputes reaches £12,300, making proper documentation essential.
Key protective measures:
- Indemnity clauses for damages and defaults
- Rent guarantees or deposit requirements
- Clear termination and notice procedures
- Regular review meetings to address issues early
Professional legal advice ensures your sharing agreement protects your primary tenancy whilst creating successful collaborative arrangements.
Contact Us today for more information!