The increase in population has caused a shortage of space worldwide. This has led to an increase in real estate prices. Due to the high prices of real estate, people cannot afford to buy real estate. However, space is required for both residential and commercial purposes. The solution for this has emerged in the form of space that is rented. It’s an increase in the number of people who rent spaces compared to those who buy them.

Residential rental involves renting a house or an apartment. Generally, the accommodation is rented for a relatively long period of time. Leasing involves renting for longer periods. The landlord and the tenant sign the terms of the contract by mutual agreement. However, the terms cannot be altered during the term of the contract. A long-term commercial space is also leased. However, venues and event spaces are rented on a short-term basis. They can be rented by the hour, day or week.

However, the concept of renting spaces has now given rise to a new trend of shared spaces. Sharing space implies renting an area in an already established place.

Examples of shared spaces:

1. Sharing desk space in an office:

In this case, the office owner rents out his unused desk space to people looking for such spaces.

2. Shared space in a retail store:

A new retailer may share space in an established retail store if the store’s activity helps his business.

3. Storage space:

Storage space rental has become a common feature now. Many times people rent storage space in their garage or shed.

Sharing spaces has many benefits for both homeowners and tenants.

Benefits for tenants:

• Tenants can rent spaces in a prime location at minimal cost.
• They have the flexibility to move as they wish, since the contract is short-term.
• When a tenant rents a space, they usually don’t have to worry about maintenance.
• Utility costs, etc. are covered in the rent.

Benefits for owners:

• Many times, the space shared by the owner can simply be underutilized space. Renting it out helps the owner turn it into a source of income.
• Sometimes the space that the owner rents to a businessman may be initially rented for a small tenure. But as the business is established, the tenant may not want to move. This puts the owner in a commanding position and can demand a rent of his choosing.
• Demand for some spaces is seasonal. In such cases, the owner has the opportunity to increase the rent during the high season.

With populations growing, the problem of inadequate space will only increase. Therefore, sharing spaces is a welcome solution to combat this problem.