An office sharing agreement template is a sample document that can help you write your own office sharing contract. The agreement should contain the names of everyone sharing the office, the date of the agreement, and a few other specifics related to office management. What to Include in an Office Sharing Agreement. Office Space Sharing Agreement Template 9/19/2019 Sponsored Links SPACE SHARING AGREEMENT This Space Sharing Agreement (the 'Agreement') is made as of January 1, 2000, by and between Intelligroup, Inc., a New Jersey corporation ('Intelligroup'). An office lease agreement is a legal document between a landlord and tenant that will be occupying space for non-retail use. The space is generally suited for occupations such as accountants, attorneys, real estate agents, or other related fields where clients are welcome for professional consultation. An office sharing agreement is an agreement between an owner of office space and another business. It can be used where the provider of the space owns the property or has a lease of the property. Do I need an office sharing agreement? This Standard Document provides a license agreement to share office space for a short term by paying a monthly fee. Though this license agreement is for office space, it can be modified and used for other types of leased properties.
If you're considering sharing a workspace – such as a room, office or clinic – you may think you need to set up a full retail or commercial lease. However you don't have to lock yourself and your tenant into a rigid lease agreement to share a workspace. Instead, you can set up a licence to occupy with a Shared Office Space or Licence Agreement.
What's the difference between a lease and a licence?
A lease is a registerable interest in the property in exchange for rent and is for the exclusive use of the tenant for a specified term. A licence, on the other hand, gives the licensee a right to use a space in a particular way, for a fee. Both have their positives and negatives, but a licence may be highly beneficial for both landlords and licensee in some cases.
Use a Shared Office Space Arrangement when you want to rent a commercial space to somebody (called a licensee) for their non-exclusive use. This space could be a space that's shared among a number of licensees, or one that the landlord can share or freely access. A ‘space' can include (but is not limited to):
- a room;
- shared office space/work space (such as in a factory);
- an area in a retail store, a clinic, a chair (such as a hairdresser chair);
- a booth/kiosk;
- storage space in a garage; or
- a studio.
A lease, on the other hand, gives the tenant exclusive access to the premises and provides them with an interest in the property that is only one step down from ownership. Obviously, this is not ideal for a landlord who requires ongoing access to their property or wishes to share the space.
An example of how a Shared Office Arrangement works
Consider a pharmacist who rents out space (often a small room or a partitioned area) to a nutrition consultant. The licensee (the nutritionist) will be able to work from this space within the premises, but the licensor (the pharmacist) will retain access.
The nutritionist (the licensee) pays a licence fee to retain this space for ongoing use, and the licence will usually include facilities, amenities and outgoings. The licensor and licensee would share things like the toilets, storage areas, waiting areas, kitchen area, common areas and reception areas (facilities), as well as refrigeration, tea and coffee making facilities, laboratory equipment (amenities) etc. depending upon the business and needs of the licensee.
While the licensee would be able to use these facilities and amenities, they would not be required to pay for rates or electricity for these, as the licence fee would cover their share of outgoings.
The convenience of a Shared Office Arrangement rests primarily with the shared use – on days where a licensee isn't using the shared workspace, their space can be used by the landlord or another licensee.
Putting the arrangement in writing is easy and gives you peace of mind
Most situations in life work better when everyone knows the groundrules. If you're sharing a workspace you want the peace of mind of knowing that the other parties know what the rules are and follow them.
You can use a our workspace sharing template to formalise the groundrules for using the space - it covers things like:
- licence fees - amount , frequency, method of payment
- bond amount
- rental term
- care of the premises
- indemnity
- breaches to the agreement
The shared office space agreement template is available as a Word document which means you simply need to add and edit information to suit your circumstances.
Who benefits?
- The Landlord benefits by earning extra income, offering diversity in complementary products or services that may improve their business, or filling an area that would otherwise be vacant.
- For the licensee, the benefits are flexibility, not being tied down to a lease, not paying dead rent for space they don't use and – as with the landlord – being able to offer a cooperative product or service that may be complementary to their own product or service.
Unlike a lease – which can heavily restrict both landlords and leases in the above cases – a licence does not fall under the legislation of a residential, commercial or retail lease, so it's a much more flexible arrangement and can be highly beneficial when both parties desire flexibility.
Caution needs to be taken, though, as some landlords have been known to pass off leases as licences, which is illegal. Regardless of what a landlord calls a lease, it's still a lease and is bound to the same legislation and regulations, so just calling a ‘lease' a ‘licence' is not sufficient by law. A licence is a far simpler document that has terminology and language that is significantly different to that of a lease, so really, there should be no confusion if you use the correct documentation!
Resources
Shared Work Space Agreements
Putting the arrangement in writing is easy and gives you peace of mind
Most situations in life work better when everyone knows the groundrules. If you're sharing a workspace you want the peace of mind of knowing that the other parties know what the rules are and follow them.
You can use a our workspace sharing template to formalise the groundrules for using the space - it covers things like:
- licence fees - amount , frequency, method of payment
- bond amount
- rental term
- care of the premises
- indemnity
- breaches to the agreement
The shared office space agreement template is available as a Word document which means you simply need to add and edit information to suit your circumstances.
Who benefits?
- The Landlord benefits by earning extra income, offering diversity in complementary products or services that may improve their business, or filling an area that would otherwise be vacant.
- For the licensee, the benefits are flexibility, not being tied down to a lease, not paying dead rent for space they don't use and – as with the landlord – being able to offer a cooperative product or service that may be complementary to their own product or service.
Unlike a lease – which can heavily restrict both landlords and leases in the above cases – a licence does not fall under the legislation of a residential, commercial or retail lease, so it's a much more flexible arrangement and can be highly beneficial when both parties desire flexibility.
Caution needs to be taken, though, as some landlords have been known to pass off leases as licences, which is illegal. Regardless of what a landlord calls a lease, it's still a lease and is bound to the same legislation and regulations, so just calling a ‘lease' a ‘licence' is not sufficient by law. A licence is a far simpler document that has terminology and language that is significantly different to that of a lease, so really, there should be no confusion if you use the correct documentation!
Resources
Shared Work Space Agreements
This agreement is used when the 'Licensor' occupies office space and they wish to rent a portion of it to another called the 'Licensee.' It sets out the terms of the space rental, placing clear boundaries on the relationship. It ensures that each party understands their obligations and covers the essential issues like licence fees, bond amount, frequency, method of payment and so forth. See Shared Office licence page for full list of provisions.
When to use a Licence to occupy instead of a Lease?
Are you thinking of renting out a room, clinic or office? You may not need a full Retail or Commercial Lease to cover your arrangement because a Shared Office Space or Licence Agreement may suit your needs.
This article first appeared on Flying Solo at http://www.flyingsolo.com.au/finance/paperwork-shared-workspace
Sharedspace.co.nz now offers Shared Office Agreements - A simple legal template agreement designed for businesses who want to share their workspace. Sharedspace.co.nz wants to make the process of sharing commercial spaces as easy as possible, which is why we have put together this agreement template.
'how to' guide
This ‘how-to' guide is designed to do give those parties entering into a shared arrangement a brief rundown of what the agreement is all about, how it works and what it means because, let's face it, there is a lot of legal documents out there that just don't make any sense at all.
What is the point of this Agreement?
The Sharedspace Licence Agreement is designed to put down on paper the arrangement between the party who has decided to share part of their commercial space (this is who we call the ‘Licensor') and the person who has decided to use part of this space for their business (this is who we call the ‘Licensee'). The Agreement sets out the key terms agreed to between the two parties such as where and what the shared space is, how long the sharing arrangement shall be for, how much it will cost the Licensee and various other rights and obligations that both parties agree to.
Office Space Sharing Agreement Template Sample
Who is this Agreement suitable for?
This license agreement is for those parties wishing to share a part of a commercial premise with those wishing to use part of that commercial space for their own business purpose. It may be entered into by a company or by an individual.
Legal Stuff
Sharedspace want to make the process of sharing commercial spaces as easy as possible, which is why we have put together this agreement. Sharedspace is not a law firm however and is not in the business of giving legal advice so we strongly advise seeking independent legal advice if there is anything in this document that you feel uneasy about or do not understand. If you do decide to go ahead and use our document, the parties acknowledge that Sharedspace takes no legal responsibility for any costs, loss or damages incurred as a result of using the agreement. This is an agreement between the Licensor and the Licensee, we are simply giving you with the tools to put it to paper.
You have the Freedom
The idea of this agreement is to allow the parties the freedom and option to amend, delete or include any additional clauses or information that is relevant to their circumstance. We have highlighted in the document the areas in yellow that either needs to be completed by the parties or where we think the parties might like to add their own arrangements. However, this agreement is just a guide, any clause in it can be changed to suit the arrangement between the parties because lets face it, every licence agreement is going to be different, you call the shots.
Important clauses description
Because lawyers like to make things confusing for everyone, we have put together a brief explanation of some of the clauses in the agreement that may be a little bit confusing or need further clarification.
Clause 1: Sets out where and what the shared space is and how it shall be used.
Clause 2: The crux of this is that the parties acknowledge they both agree to license the shared space.
Clause 3: There's a difference between a lease and a licence, a lease gives the leassor rights and an interest in the property under NZ law, this is not a lease.
Clause 5: The Licensee has a number of obligations to the Licensor, these are set out in this clause and include paying a fee (and possibly other costs as agreed to between the parties) and following the rules relating the use of the shared space.
Clause 6: Anything that either party comes across in the course of the shared space arrangement is and shall remains strictly confidential, no questions asked.
Clause 8: Outlines how the shared space is used – this can be tailored to the arrangement.
Clause 10: Basically, the Licensee must comply with everything set out in the Head Lease.
Clause 11: This outlines everything that will cause the licence agreement to be terminated.
Clause 12: The Licensee shall cover any costs the Licensor incurs if the Licensee breaks the rules.
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Signing the Agreement
To make the agreement all official, or as they say in the legal world, ‘binding' the document must first be dated at the top of the first page (don't date the document before you sign it in case you don't actually sign it on that date) and be signed by both parties on the designated execution page (no witnessis required). We advise that both parties sign the document at the same time and place (but if they don't, make sure you only date the agreement after the second party has signed). Both parties should be given a copy (either by signing 2 originals or by making a photocopy of the original version) and it should be kept in a safe place so that it can be referred to if necessary.