A Practical Guide to Medical Office Subletting Agreements

Once you've found the right subtenant or the right space, the next step is getting the agreement right. A well-structured sublease protects both parties and prevents misunderstandings down the road. Here's what to cover.

1. Define the Space and Permitted Use

Be specific about which rooms, areas, and shared spaces are included. Spell out what the space can be used for—clinical care, administrative work, telehealth, etc.—and any restrictions. This is especially important when multiple providers share a floor plan.

2. Rent, Payment, and Deposits

Clearly state the rent amount, payment schedule (monthly, per-session, etc.), accepted payment methods, and any security deposit. If pricing includes utilities, internet, or shared amenities, say so explicitly.

3. Term and Renewal

Set the lease duration—month-to-month, six months, or a year are all common. Include how and when either party can terminate, notice periods required, and whether the agreement auto-renews.

4. Schedule and Access

Define when the subtenant can use the space. If it's a part-time arrangement, specify the days and hours. Cover after-hours access, key or badge policies, and any blackout periods.

5. Insurance Requirements

Both parties should carry appropriate insurance. Typical requirements include:

• Professional liability (malpractice)—the subtenant should have their own policy
• General liability—covers slip-and-fall and property damage
• Additional insured endorsement—the space provider may require being named on the subtenant's policy

6. Compliance and Licensing

Medical office subletting comes with regulatory considerations. Make sure the agreement addresses:

• State and local licensing requirements for the subtenant's practice type
• HIPAA compliance—particularly around shared waiting areas, records storage, and network access
• Landlord consent—most master leases require written approval before subletting; verify this first
• Zoning—confirm the space is zoned for the subtenant's intended use

7. Shared Areas and Responsibilities

If the subtenant shares waiting rooms, restrooms, break rooms, or reception staff, spell out how shared-area costs are split, maintenance responsibilities, and any behavioral expectations (noise, signage, patient flow).

8. Modifications and Equipment

Can the subtenant install signage, bring equipment, or modify the space? Clarify what's allowed, who pays for changes, and who's responsible for restoring the space at the end of the agreement.

9. Dispute Resolution

Include a clause for how disputes will be handled—mediation, arbitration, or which jurisdiction's courts will apply. This is rarely needed, but it's valuable to have in place.

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