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What is an Office Sharing Agreement?
An Office Sharing Agreement is a legally binding agreement between the owner or commercial tenant of an office space and another business. Office Sharing Agreements are used to licence out the use of spare office workstations. To find out more about sharing space for business purposes, reading Sharing space.
When should I use an Office Sharing Agreement?
Use this Office Sharing Agreement:
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when you own or have a lease of a commercial property
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when you want to share workstations at the property with another business
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when you want to share the space for a short period of time
Sample Office Sharing Agreement
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AGREEMENT TO SHARE OFFICE SPACE
This Agreement is made on the date of last signature below between:
Between
- (the Provider, we, us, or our); and
- (the Sharer, you or your);
Meanings
- In this Agreement, the following definitions apply:
Agreement The agreement set out in this document including any agreed amendments. Licence Fee £ plus value added tax to be paid on the first working day of each week. Licence Period On and including until and including . Property The property at , , let to us under the Lease. Space Space for a maximum of workstation(s) within the Property and the right to use the kitchen and WCs in the Property.
Our Responsibilities
- We permit you to use the Space (or such other space for the same number of workstations as we may select) until the end of the Licence Period or earlier if ended in accordance with this Agreement.
Your Responsibilities
- You must:
- keep the Space tidy;
- use the Space (or such other space as given by us) and any furniture and equipment in a reasonable manner;
- pay the Licence Fee on the due dates plus VAT and interest at 4% above the Bank of England base rate on all late payments. Payment to be by way of Standing Order or Direct Debit;
- comply with all current legislation applicable to your use and occupation of the Space and within two weeks of occupation produce a fire risk assessment;
- conduct your business from the Space in a way that does not interfere with us or with any other occupiers of the Property. Any act or omission on the part of any of your employees is deemed to be the act or omission of you;
- vacate the Space at the end of the Licence Period or on the earlier determination of this Agreement;
- indemnify us from and against all costs, losses claims and demands arising out of any breach by you of any of the terms of this Agreement.
- You must not:
- block or interfere with our right of possession and control of the Property;
- obstruct access to or within the Property;
- use or allow any other person to use the Space or the Property as its registered office without our express written consent. If we request in writing that this must stop you must make sure that anyone who is using the Space or Property as its registered office stops;
- bring any office furniture into the Space or install or connect to any utility or electronic communications service in the Space except as permitted by us in writing in our absolute discretion;
- change the Space or carry out any works in or to the Space;
- unless required in an emergency, move any fire extinguishers;
- interfere with our business or in any way try to take away or make any offer of employment to any of our employees or members of staff. If you breach this provision then we are entitled to compensation equal to the total annual salary of the employee(s);
- cause any nuisance or inconvenience to us or any occupiers at the Property;
- do anything that may bring the Property into disrepute or that may affect our or of any other occupier's credit rating;
- display anything on the windows or doorways of the Property without our written consent;
- cause any damage to the Space (or such other space as we give you) or any furniture and equipment.
- You agree and confirm that nothing in this Agreement creates the relationship of landlord and tenant or confers on you any security of tenure, and acknowledge our right at any time to alter the location within the Property of the Space.
- This Agreement is personal to you and is not capable of assignment.
- Where you are more than one natural or legal person, your liability is joint and several.
Termination
- This Agreement can be terminated:
- by not less than one month's written notice given by either party to the other;
- immediately on written notice in writing from us to you in the event that the Property and/or Sharer's Space becomes unusable or inaccessible due to fire, explosion or any other cause, and any advance payment of Licence Fee made by you before such notice in respect of a period after that date must be repaid by us to you;
- by not less than one week's notice in writing from us to you in the event of you committing a breach of your obligations in this Agreement;
- immediately on written notice by us in the event that you suffer an event of insolvency including receivership, administration, bankruptcy or liquidation.
- Any notice by us to you will be sufficiently served if left at the Space.
- This Agreement shall be governed by and interpreted according to the law of and all disputes arising under the Agreement (including non-contractual disputes or claims) shall be subject to the exclusive jurisdiction of the courts.
About Office Sharing Agreements
Learn more about making your Office Sharing Agreement
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How to make an Office Sharing Agreement
Making an Office Sharing Agreement online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all of the details prepared in advance, making your document is a quick and easy process.
To make your Office Sharing Agreement you will need the following information:
Party details
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What are the details (ie legal structure, name and address) of the provider?
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If the provider is a company, LLP or partnership, who will sign the Office Sharing Agreement on the provider’s behalf?
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What are the details (eg legal structure, name and address) of the sharer?
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If the provider is a company, LLP or partnership, who will sign the Agreement on the sharer’s behalf?
Office space
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How many workstations will the sharer have?
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Will a plan be attached to the Office Sharing Agreement showing which workstations the sharer will use?
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What is the address of the office space?
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Does the provider own or rent the space being let? If the provider is renting:
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On what date were they granted the lease of the property?
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Does the provider have the landlord's consent to share the office space?
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Licence fee
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Is the licence fee to be all-inclusive?
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What is the licence period?
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What is the licence fee amount?
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Will the licence fee be paid to the provider on the first day of every month or every week? If the licence fee is paid monthly, will details about when the first payment is due be included? If so:
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What is the amount of the first payment?
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On what date is the first payment due?
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What is the last date covered by the first payment?
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Common terms in an Office Sharing Agreement
Office Sharing Agreements enable businesses to licence out spare workstations in their offices. As a result, this Office Sharing Agreement template covers:
Between
The Office Sharing Agreement starts by clearly identifying the parties to the Agreement (ie the provider and the sharer).
Meanings
This section provides the meanings for certain defined terms used throughout the Office Sharing Agreement. For ease of identification, all defined terms are capitalised throughout the Agreement. Examples include ‘Licence Fee’, ‘Licence Period’ and ‘Space’.
Our responsibilities
This section sets out the provider’s responsibilities. Specifically, it covers the provider permitting the sharer to use the office space for the duration of the licence period.
Your responsibilities
This section sets out the sharer’s responsibilities in relation to the office space and workstation(s). These include:
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keeping the space tidy
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paying the licence fee and all applicable VAT
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paying interest (4% above the Bank of England base rate) on any late payments of the licencing fee
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vacating the office space at the end of the licence period or on the earlier termination of the Agreement
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not blocking or interfering with the provider’s right of possession or control of the property
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not causing any damage to the space or any furniture and equipment
Termination
This section details how the Office Sharing Agreement can be brought to an end before the end of the licence period.
This section also specifies the jurisdiction of the Agreement. This clarifies which country’s legal system must be used to resolve any disputes under the Agreement and is needed as the legal system of England and Wales and the legal system of Scotland differ.
If you want your Office Sharing Agreement to include further or more detailed provisions, you can edit your document. However, if you do this, you may want a lawyer to review or change the Office Sharing Agreement for you, to make sure it complies with all relevant laws and meets your specific needs. Ask a lawyer for assistance.
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Legal tips for making an Office Sharing Agreement
Bear in mind that the Office Sharing Agreement is a licence
Leases grant exclusive possession of properties for a set time period, while licences grant personal rights in relation to the licensor’s (ie the tenant’s or owner’s) property. This means that leases confer more rights than licences.
This Office Sharing Agreement is designed to be used as a licence, with the provider being the licensor and the sharer being the licensee. By granting a licence, you ensure that the sharer does not gain the rights and protections awarded under a lease. As a result, it is important that you don’t do something that means that the Office Sharing Agreement is deemed to be a lease instead of a licence. For example, allowing the sharer the exclusive right to use the workspace.
For more information, see the FAQ ‘Is an Office Sharing Agreement a type of lease?’ and read Leases, licences and tenancies. If you have any questions do not hesitate to Ask a lawyer.
Understand when to seek advice from a lawyer
Ask a lawyer for advice:
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on long-term arrangements
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if your lease prevents you from sharing the property with anyone else
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regarding workstations that cannot be moved to another space in the property
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if this Office Sharing Agreement doesn’t meet your specific needs
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Office Sharing Agreement FAQs
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What is included in an Office Sharing Agreement?
This Office Sharing Agreement template covers:
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details of the office provider (ie the business that is providing the office space)
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the details of the sharer (ie the business that is renting the office space from the provider)
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granting the right to use workstations without defining a specific area
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the licence fee payable
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interest on overdue payments
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rights given to the sharer
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terminating the Office Sharing Agreement
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Why do I need an Office Sharing Agreement?
Rent and operating expenses paid for office space can be some of the most significant costs for a business. This Office Sharing Agreement allows you to bring in another business to share these costs by granting them the use of a workspace within your office space property.
If you have spare workstations in your office, you can licence them out to other businesses for useful and lucrative results. By making an Office Sharing Agreement you not only put the contractual relationship on formal footing, you can also specify details relating to the licence itself (eg what workstations can be used and for how long).
For more information, read Sharing space.
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Is an Office Sharing Agreement a type of lease?
The Office Sharing Agreement is not a lease. Instead, it is a contractual licence. The key difference is that a licence does not grant rights over a defined and fixed area. This Agreement provides the sharer with a set number of workstations but does not specify their location. For more information, read Leases, licences and tenancies.
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Who are the parties to the Agreement?
The 'provider' is the business that is granting the right to share the office space. The 'sharer' is the business sharing the office space. If there is more than one sharer, each must be named to ensure they remain jointly and severally liable under the Agreement. There can be a maximum of 4 sharers.
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What if I don’t own the business property but rent it?
You may still be able to use an Office Sharing Agreement if you are the property’s commercial tenant (rather than its owner). However, you should carefully review your Commercial lease for any clauses that may prevent or restrict sharing the premises with another business.
If you need your commercial landlord’s consent to share the office space, this must be obtained before you sign the Office Sharing Agreement and allow the sharer to move onto the premises.
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Should I attach a plan of the workstations to the Agreement?
It is for you to decide whether you wish to attach a plan showing the workstations to the Office Sharing Agreement. However, if you do attach such a plan, make sure that it only shows the initial location of the workstations. This is because you want to retain the right to alter the location of workstations in order to ensure that the Agreement is in fact interpreted as a licence and not a lease.
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What is the licence fee?
The licence fee is the amount the sharer pays you for use of the space in your office. You will need to decide on the amount the sharer should pay you for the licensed space.
Under this Office Sharing Agreement, the licence fee can either be paid weekly or monthly. The Agreement also covers situations where the licence starts part-way through a month.
You should also bear in mind that, under this Agreement, the sharer must pay any Value Added Tax (VAT) due on the licence fee.
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Is the licence fee an all-inclusive fee?
Whether the licence fee includes contributions for certain additional fees is for you to decide. If you want, the licence fee can be inclusive of the costs of services (eg internet, photocopying, and reception and secretarial services) and utility bills. Alternatively, you can charge a licence fee and require the sharer to make additional contributions towards the cost of any services and utilities.
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For how long will the Office Sharing Agreement last?
This Office Sharing Agreement sets out the specific licence period for which it will run. However, the Agreement can be ended early in certain circumstances by one party providing the correct amount of notice.
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How can the Office Sharing Agreement be terminated early?
This Office Sharing Agreement can be terminated (ie brought to an end) early (ie before the end of the licence period) in certain circumstances. This Agreement can be terminated by either party giving the other party one month’s notice in writing.
The Agreement can also be ended early by the provider:
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by their giving one week’s notice, if the sharer breaches their obligations under the Agreement
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by giving written notice, if the sharer suffers an insolvency event (eg liquidation or administration). The termination will have immediate effect
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by giving written notice, if the property or the office space becomes unusable or inaccessible due to certain unforeseeable circumstances (eg because of a fire). The termination will have immediate effect
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