Rising populations have caused a scarcity of space globally. This has led to an increase in prices of real estate. Due to high real estate prices, people are not able to afford to purchase real estate. But, space is required for both residential and business purposes. The solution for this has emerged in the form of space being rented. The is an increase in the number of people renting spaces compared to buying them.
Renting for residential purposes implies renting a house or an apartment. Generally, accommodation is leased for a relatively long period of time. Leasing implies renting for longer periods. The landlord and the tenant sign on mutually agreeable terms of the contract. However, the terms cannot be altered during the tenure of the contract. A business premise is also leased for a long duration. However, venues and event spaces are rented for short terms. They might be rented on an hourly, daily or weekly basis.
However, the concept of renting spaces has now given rise to a new trend of space sharing. Space sharing implies renting of an area in an already established place.
Examples of space sharing:
1. Sharing desk space in an office:
In this case, the owner of the office rents out his unused desk space to individuals seeking such spaces.
2. Sharing space in a retail store:
A new retail businessman may share space in an already established retail store if the activity of the store helps his business.
3. Storage space:
Renting storage space has become a common feature now. Many a time individuals rent out storage space in their garage or sheds.
Sharing of spaces has a lot of benefits for both the space owners and tenants.
Benefits to tenants:
- Tenants are able to rent spaces in a prime location at minimum cost.
- They have the flexibility to move out as per their wish as the contract is for a short duration.
- When a tenant rents space, he usually does not have to worry about the maintenance.
- The expenses towards utilities, etc are covered in the rent.
Benefits to owners:
- Many a time the space that is shared by the owner might just be underutilized space. Renting it out helps the owner in converting it into a source of income.
- Sometimes the space that is rented out by the owner to a businessman might initially be rented out for a small tenure. But as the business gets established, the tenant might not want to move out. This puts the owner in a commanding position and he can demand a rent of his choice.
- The demand for some spaces is seasonal. In such cases, the owner has a chance to increase the rent during peak season.
With the growing populations, the problem of inadequate space will only increase. Hence, sharing spaces is a welcome solution to combat this problem.