Renting Premises

4. Option to Sub-let

Negotiate the widest possible freedom to sub-let all or part of the premises you lease.

4.1 Negotiate flexibility in the timing of any sub-letting.

• You could sub-let part of your space at the beginning of your lease, and then take over the rest as your business grows.
• You could sub-let some (or all) of your space if you establish a second premises.

4.2 Negotiate flexibility in the rent you can receive from sub-letting tenants.

• If market rents have risen since you took on the lease, you may be able to get a higher rent than you are paying.
• Avoid any clause that prevents you sub-letting at a lower rent.
• To protect your reclaims of any VAT you pay to the landlord you should carefully consider your own VAT arrangements.

4.3 Negotiate flexibility in the potential uses of the premises you occupy.

• This gives you the option of sub-letting space to a business in a different industry.