Makati Office

Subleasing is a good thing. Businesses can move into a decent commercial office space when they choose to sublease rather than getting an exclusive lease. For most part, the disadvantage of subleasing is in logistics. What part of that Makati office are you allowed to use? What parts of the property are off-limits?

There are also legal disadvantages especially if you run into trouble with your sublessor’s landlord. Worse, things can get difficult if you will end up not mixing well with your sublessor. The biggest thing you need to remember before you sign a contract with your sublessor is to let an attorney review the contract. This minimizes your potential for legal problems and protects your right as a subtenant.

What are the disadvantages of subleasing?

1. Lease conditions that are not favorable can be passed to your sublease. For example, if a sublessor realizes that he was not able to negotiate a good deal with his landlord, he can sublease his unit and pass the fees to you and charge a higher rent on top of that. If you want to sublease or rent a Makati office, make sure that you review your sublease along with the original lease so you can determine whether or not the conditions are fair, or if your sublessor is just trying to weasel his way out of a bad deal.
2. You can lose your sublease if your sublessor defaults. If your sublessor fails to pay the unit’s bills and fees, you can end up losing your sublease. Worse, you can be evicted if your sublessor fails to pay his rent. To make sure this doesn’t happen, include a clause in your sublease that you have the right to get back the money you lose if your sublessor defaults on his payment.
3. You may have limited personalization options. Because you will be moving into an “owned” commercial office space, you won’t have the freedom to decorate and personalize your space.
4. You may be delaying your company’s independence. If you rent a Makati office that you cannot personalize, you may not be allowed to post signs and nameplates in and around your office. This will make you seem like a “small company” which is probably not something you want to be thought of. Ask if you can put up signs within the building that will point customers to your company. If you are not allowed to do so, you may want to look at other options.
5. Your company may be subject to maintenance delays. If you rent a Makati office space under a sublease, you may have problems whenever you need to get some maintenance work done because you will have to go to your sublessor first, instead of going directly to the building manager.

Generally, it is a good idea to sublease a commercial office space. The key to finding a great place to make sure that you and your sublessor agree on fair terms and conditions. Subleasing is a cheap and convenient way to get your business started in a business hub like Makati.

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