La professional subletting is an economic model that is gaining ground in real estate. It is used as much for offices professionals, as premises, or furnished apartments. This principle allows tenants to reduce their real estate costs or invest in rental without becoming propriétaires. Discover the different facets of subletting with your agency in Menton. Whether you are a business considering sublet a space, an individual seeking to optimize a rental investment, or an owner wishing to understand their rights, YourHostHelper supports you in your daily life.
The principle of professional subletting
In this rental method, the main tenant rents all or part of his premises, without being the owner. Professional subletting is commonplace for companies, SMEs or freelancers. With the rise of post-Covid teleworking and the development of coworking spaces, professionals are seeking to adapt.
In both cases, a sublease contract is signed between the tenant and the sublessee.
It is good to differentiate between subletting and professional subletting. The first allows tenants to sublet their accommodation for a given period, such as a student stadium. It is useful for keeping your home, while avoiding paying two rents.
Professional subletting, for its part, is by definition used by businesses. Whether for offices or furnished rentals, this type of contract is strictly regulated by law.
Please note: it is prohibited to use subletting to make net profits. Indeed, some tenants seek to create rental income exceeding the amount of their own rent. Please note that this principle is prohibited by French legislation.
Airbnb subletting concerns both businesses and individuals. The accommodation can be used as sublet for events, seminars, but also for vacationers during busy periods. As long as you don't generate cash flow thanks to it.
What benefits for stakeholders
Professional subletting connects three distinct parties: the owner of the property, the tenant and the subtenant. But what benefits can there be for each?
For companies
Professional subletting combines several advantages for businesses. Whether by being a tenant or thanks to the status of sub-tenant, this management method allows much appreciated flexibility.
The passage of Covid has profoundly changed the way we work. Teleworking has become democratized, leaving empty, useless offices. Conversely, some Start-ups are booming. They are asking for more space to accommodate their teams and are looking for quick solutions to grow.
In these two cases, subletting an additional office is a simple and accessible solution. The sublease is generally short-term. It allows greater flexibility and adjusts to the real needs of companies as they evolve.
In addition to being adaptable, this system helps reduce business hosting costs. For the tenant, he will receive rent from the sub-tenant and which will be deducted directly from his own rent. The second occupant, for his part, will be able to occupy offices adapted to his size, at a more competitive price. Energy costs, such as electricity or cleaning service, will also be divisible between the parties.
Sub-tenants also benefit from a certain ease of installation. In general, the space to be shared is already set up. It therefore does not require any investment in installation work. This is a way to obtain turnkey premises that can be used immediately.
For owners
Good news for landlords: they are entitled to request a rent increase based on the income received by the tenant.
In the event of subletting, the law protects the owners of the walls. When a main tenant wishes to sublet a space, this must be discussed in advance with the manager of the initial lease. The latter can then negotiate an increase in the rent depending on the tenant's project. However, this rent review must be clearly established in the lease contract or be the subject of an amendment to the contract.
The rules to follow when doing professional subletting
What legislation applies?
Professional subletting is governed by the articles L.145-31 and L.145-32 of the Commercial Code. In principle, this model is prohibited by law. However, an agreement with the initial lessor (the owner) allows an exception to this rule.
To be eligible for subletting, the tenant must submit his request by an extrajudicial act or by registered letter with acknowledgment of receipt. The owner has two weeks to respond.
Depending on the use of the property, with article L.145-31, paragraph 3, the owner is entitled to request an increase in the base rent. If there is agreement between the owner and the tenant on the absence of an increase, remember to stipulate this clearly in the lease.
Good to know: there is another way to do professional subletting. If this is a project that is close to your heart, you will need to become a real estate agent. Requests are made to the Chamber of Commerce and Industry (CCI).
The risks of non-compliance with the rules
In the event of subletting without the owner's agreement, the tenant assumes all responsibilities. He is thus exposed to prosecution for breach of contract. The owner is then entitled to claim damages.
To avoid any risk of conflict, your YourHostHelper agency in Menton advises you to establish a lease that is as precise as possible. Consider showing the conditions of use of the premises, responsibilities for repairs or freedom of modifications made to the premises.
Any violation of these rules may result in termination of the main lease and legal action.
Please note: In the event of termination of the lease with the tenant, the owner is obliged to keep the sub-tenant (provided that this is authorized in the established lease). In the context of partial subletting, such as office sharing, accommodation can no longer be considered as an indivisible whole.
Provided the owner is informed, professional subletting is an easy option for business premises. This solution provides flexibility to the tenant and allows for a sharing of costs between the two landlords. It is ideal for companies with vacant offices or SMEs wishing to expand. Consult the Chamber of Commerce and Industry to find out more. Your YourHostHelper agency in Menton supports owners and tenants in all their procedures.
