Space Use Agreements: A Guide for Tenants and Landlords

In today’s economy, the sharing of office and commercial spaces has become increasingly popular. This has created a need for Space Use Agreements – a legal document that outlines the terms and conditions between the Tenant and the Landlord or Host in regards to the shared use of a commercial space.

In this article, we will discuss the importance of Space Use Agreements, their key components, and some best practices for both tenants and landlords.

Why are Space Use Agreements important?

As the name suggests, the Space Use Agreement governs the use of a shared commercial space, which means it is vital for both the Tenant and the Landlord. For the Tenant, it ensures that they have access to a space that is appropriate to their business needs, while for the Landlord, it protects their investment by ensuring that their property is used correctly and responsibly.

Some of the key components of a Space Use Agreement include:

– Description of the space: This section should detail the exact area of the space that the Tenant is renting, as well as any common areas that may be shared with other tenants. It should also clearly specify the allowed use of the space.

– Term of the agreement: This outlines the duration of the agreement and whether or not it can be renewed or extended.

– Rent and Payment Terms: This outlines the rent amount, payment due date, and any additional costs such as utilities or maintenance fees.

– Security Deposit: This section details the amount of the security deposit, the conditions for its return, and any deductions that may be taken.

– Liability and Insurance: This section outlines the responsibilities of each party in regards to liability, damages, and insurance.

Best Practices for Tenants:

When looking to enter into a Space Use Agreement as a tenant, it is important to consider the following best practices:

– Ensure that the space meets your commercial needs: Check that the space is suitable for your business requirements, including size, location, and accessibility.

– Understand the terms of the agreement: Read the agreement thoroughly and seek legal advice if necessary to ensure that you understand the terms and conditions fully.

– Budget for additional costs: In addition to the base rent, there may be additional costs such as utilities, maintenance, and insurance premiums. Budget accordingly to avoid unexpected costs.

Best Practices for Landlords:

If you are considering renting out a commercial space and want to create a Space Use Agreement, it is important to consider the following best practices:

– Clearly specify the allowed use: Ensure that the tenant’s business use is clearly defined in the agreement to protect your investment and avoid any potential legal disputes.

– Understand the tenant’s business: Get to know the tenant’s business needs and requirements to ensure that the space is appropriate and suitable for their use.

– Consider hiring a property management company: A professional property management company can help you manage the property and ensure that the tenant`s needs are met.


Space Use Agreements are an essential tool for any tenant or landlord who is considering sharing a commercial space. By outlining the terms and conditions of the arrangement, both parties can protect their interests and avoid any potential misunderstandings. If you are considering using a shared space, take the time to understand the agreement fully and seek legal advice if necessary to ensure a successful partnership.