Recent data suggests that in the US alone, half of the biggest global companies are planning to reduce their physical office space by at least 10%, causing a decline in long-term office leases.

But as these traditional spaces shrink, where will businesses turn for their operational needs?

The answer lies in the increasing popularity of short-term rentals and coworking spaces, which have experienced a 20% surge in demand in 2024. This shift reflects the changing priorities of businesses seeking flexibility and scalability and highlights the importance of understanding coworking rental contracts.

These legal agreements are crucial for smoothly operating your coworking space and safeguarding your legal rights. In this guide, we’ll walk you through what you need to know about coworking agreements, what they should include, and how OfficeRnD can help you manage your coworking space efficiently.


Quick Summary:

  • Coworking rental contracts offer more flexible space solutions than traditional office leases. They allow tenants to rent desk space or private offices on a short-term basis.
  • Coworking rental contracts should include important details, such as contact information, rental space details, and rental terms.
  • Different types of coworking contracts range from hot desk memberships to private office leases.

What Is a Coworking Rental Contract?

A coworking rental contract — also known as a coworking lease agreement or coworking contract — is a legal agreement between a coworking space provider (such as a coworking company or owner of a building) and an individual or business that wants to use the coworking space. It outlines the terms and conditions of using the shared workspace, including details about rent, amenities, services, and both parties’ rights and responsibilities.

Unlike traditional office leases, coworking rental contracts cater to individuals and businesses looking for a collaborative and flexible space.

By the way, for more industry-related terms, check out our comprehensive coworking glossary.

What Is a Coworking Rental Tenant?

A coworking rental tenant is an individual or business that has an agreement with and uses a coworking workspace. These tenants typically rent desk space or private offices on a short-term basis — often monthly — rather than committing to a long-term lease.

coworking office

Coworking rental tenants have access to office amenities, such as desks, high-speed internet, meeting rooms, printers, and kitchen facilities. This arrangement is great for freelancers, startups, small businesses, and remote workers looking for a professional work environment without the overhead costs and commitment involved in a traditional office lease.

Coworking space agreements foster collaboration, networking opportunities, and a sense of community among tenants. This makes them a popular choice for working individuals and businesses looking for a cost-effective and flexible workspace.

What Are the Different Types of Coworking Contracts

Navigating coworking contracts means understanding the different options available for different tenants, from solo freelancers to large businesses. Here are some common types of coworking contracts and who they’re ideal for.

Hot Desk Membership

A hot desk membership grants members access to any available desk in a common area on a first-come, first-served basis. Hot desk memberships are ideal for freelancers, remote workers, and those who require flexibility in their workspace.

hot desks

Dedicated Desk Agreement

With a dedicated desk agreement, members have a desk within the coworking space reserved exclusively for their use. This option provides a more consistent and personalized workspace for those who value stability and routine.

Private Office Lease

For businesses or individuals in need of more privacy and autonomy, private office leases offer a dedicated, enclosed office space within the coworking facility. This gives users more privacy, security, and customization options compared to those with shared desk arrangements.

Virtual Office Agreement

Virtual office agreements cater to remote businesses or individuals who require a professional business address without the need for a physical office space. These contracts typically include mail handling, call forwarding, and access to meeting rooms on an as-needed basis.

Meeting and Conference Room Rentals

Coworking spaces often offer meeting and conference room rentals to members and external parties. These rentals allow individuals and businesses to book meeting rooms to host client meetings, workshops, seminars, and other coworking space events in a professional setting without the need for a long-term commitment.

What Details Need to Be Included in a Coworking Agreement?

When drawing up a coworking agreement, it’s important to ensure all the necessary components are included to protect both the coworking space provider and the tenant. This helps both the person renting the space and the person providing it know what to expect — and it can also help prevent arguments later.

things to include in a rental contract for a coworking space

Contact Information

The contract should include the contact details for the coworking space provider and the tenant, such as their names, addresses, phone numbers, and email addresses.

Rental Terms

Clearly state the duration of the rental agreement, whether it’s a month-to-month arrangement or a fixed-term lease. Include the start ‌and end dates of the rental period, too.

Rental Space Details

Provide a detailed description of the rented workspace, including the coworking space layout, size, and any specific features or amenities included. Specify the exact area or desk within the coworking space that the tenant is renting.

Rental Fees and Payment Terms

Outline the rental fees for the space, including any additional charges or taxes. Clearly state the payment terms, such as the frequency of payments (e.g., monthly or quarterly) and accepted payment methods.

If a security deposit is required, include the amount and the conditions under which it will be refunded to the tenant.

Access and Use

Define the tenant’s rights to access and use the coworking space, including any restrictions or limitations. Specify the operating hours of the coworking space and any access policies or procedures that tenants must adhere to.

Services and Amenities

List the services and amenities provided to tenants as part of the rental agreement. This includes things like Internet access, printing facilities, and meeting rooms.

Maintenance and Repairs

Outline the procedures for reporting maintenance issues or damages within the coworking space. Specify the responsibilities of both the tenant and the space provider.

Termination

Include conditions and procedures for terminating the contract, such as any notice periods required by either party.

Confidentiality and Privacy

Address any confidentiality or privacy concerns, especially regarding shared spaces and sensitive information.

Signatures

Ensure that the contract is signed and dated by both parties to indicate their agreement to the terms and conditions.

Example Coworking Rental Contract

To give you a clearer picture of what your document should look like, here’s an example of a coworking rental contract. This sample will help you make sure all the necessary details are covered, from payment terms to space usage rules.

Coworking Rental Contract Example

Effortlessly Manage Your Coworking Space With OfficeRnD Flex

Managing coworking rental contracts can be quite a handful, with numerous details to consider from start to finish. From setting terms to handling disputes, it’s a lot to think about.

To help make this process as smooth as possible for you, OfficeRnD Flex simplifies the entire procedure. Here’s more about how it can help.

Contract Management Made Easy

With OfficeRnD Flex, you can effortlessly manage contract statuses, signature states, and stages. This means you’ll always have a clear overview of your contracts and their current statuses.

Streamlined eSignatures

OfficeRnD supports eSignatures, making it convenient for both parties to sign contracts electronically. You can track the signature stages from “Out For Signature” to “E Signed” for a smooth and paperless process.

Contract Approval Functionality

Enable contract approval functionality to ensure that contracts are reviewed and approved by the parties involved before they become active.

Detailed Contract Stages

Understand where each contract stands, with detailed stages such as “Active,” “Up for Renewal,” “Not Renewed,” “Notice Served,” “Expired,” and “Terminated.” This clarity helps you take timely action.

Custom Termination Reasons

OfficeRnD Flex allows you to specify reasons for termination easily.

Resource Validation

Identify and address any issues with resources in the contract with the “Requires Attention” status. Ensure that contracts are accurate and complete.

Efficient Communication

It’s easy to send contracts for eSignatures, making it convenient for customers to sign digitally. Any declined contracts are clearly marked, preventing misunderstandings.

OfficeRnD Flex provides the leading flex space management platform to help operators scale brand operations, automate revenue, integrate with office technologies, and deliver best-in-class experiences for their members.

Click here to book a live demo today and see how OfficeRnD Flex can skyrocket your coworking space business.

FAQ

What Is the Difference Between a Coworking Rental Contract and a Traditional Office Lease?

A typical coworking agreement offers more flexibility than a traditional office lease. Coworking contracts often allow for shorter rental terms, giving tenants the option to rent the space on a month-to-month basis instead of committing to a long-term lease. Also, coworking spaces often provide fully furnished and equipped workspaces, whereas traditional office leases may require tenants to furnish and maintain their own space.

How Profitable Is a Coworking Space?

The profitability of a coworking space depends on factors like location, occupancy rates, pricing strategy, and operational efficiency. Well-managed coworking spaces in high-demand areas with a diverse range of amenities and services can be highly profitable. Plus, offering additional services, such as event space rental, business support services, and community events, can make the coworking space even more profitable.

Why Rent a Coworking Space?

Coworking spaces provide a flexible and cost-effective solution for individuals and businesses seeking a professional workspace. Unlike traditional leases, coworking offers shorter rental terms and fully furnished spaces, catering to varying needs. With amenities like high-speed Internet, meeting rooms, and communal areas, they foster collaboration and networking.

What is a Coworking Lease Agreement?

A coworking lease agreement is a contract between the coworking space provider and its members or tenants, outlining the terms of use for the space. This agreement typically covers membership fees, duration of the lease, access hours, rules regarding the use of shared and private spaces, and the amenities included. It ensures clear communication of expectations and responsibilities, helping to prevent conflicts and provide a structured environment for all users.

Miro Miroslavov
CEO and Co-founder of OfficeRnD
Miro Miroslavov is a software engineer turned into a tech entrepreneur. In 2015 he co-founded OfficeRnD - a leading flex space and hybrid work management platform. As a CEO at OfficeRnD, he grew the company from inception to a leading software vendor that serves thousands of customers worldwide. He is a big fan of flexible working and is on a mission to "Making Flexible Working the Way of Working".