Your office copier sits idle most of the day. Meanwhile, the startup down the hall is sending employees to FedEx to make copies. You wonder: can you sublease your copier to them, split the cost, and reduce your effective monthly payment?
The idea sounds practical, but subleasing a leased copier is more complicated than subleasing office space. Here is what you need to know before making that offer.
What Your Lease Agreement Actually Says
Most copier leases explicitly prohibit subleasing. The language typically reads: “Lessee shall not sublease, rent, loan, or otherwise allow use of the equipment by any party other than lessee without prior written consent.” Violating this clause is a lease default, which can trigger immediate demand for the full remaining balance.
A few leases are silent on subleasing, which is not the same as permitting it. If your lease does not address subletting, you need written approval from the leasing company before proceeding. Assume nothing is allowed unless explicitly stated or approved in writing.
Why Leasing Companies Restrict Subleasing
The leasing company’s concerns are legitimate. They approved the lease based on your creditworthiness and business profile. A sublessee introduces an unknown party who will use the equipment without a direct contractual relationship with the leasing company. If the sublessee damages the copier, the leasing company has no recourse against them, only against you.
Additionally, a sublessee increases equipment wear. A copier used by two businesses prints twice the volume, which accelerates mechanical wear, increases service calls, and reduces the equipment’s residual value at lease end.
Alternatives That Actually Work
If you want to reduce your copier costs by sharing the machine, consider these alternatives. First, negotiate a lease transfer instead. If you genuinely do not need the copier, transfer the entire lease to the other business. This is cleaner legally and releases you from the obligation entirely.
Second, arrange an informal cost-sharing agreement. Instead of a formal sublease, negotiate a private arrangement where the other business pays you a monthly fee for access to the copier. This is a business-to-business service agreement, not a sublease of the equipment. You remain the sole lessee, responsible for all lease payments and maintenance.
Third, consider upgrading your service agreement to cover the additional volume. If sharing the copier doubles your monthly print volume, your page allowance will need to increase. Contact your dealer to adjust the service agreement before the other business starts using the machine, or you will get hit with overage charges.
The Insurance Problem
Your business insurance covers the leased copier for damage or loss at your premises. If another business is regularly using the equipment, your insurance provider may argue that the usage pattern changed and deny a claim. Worse, if the sublessee’s employee damages the copier, your insurance may not cover damage caused by a non-insured party.
Before sharing the copier with another business, contact your insurance provider and disclose the arrangement. You may need additional coverage or a rider that specifically covers third-party use of the equipment.
What Most Guides Miss: The Meter Reading Problem
Copier leases bill based on meter readings (total pages printed). If two businesses share a copier, how do you split the overage charges? The copier’s meter does not distinguish between pages printed by your company and pages printed by the sublessee.
Some newer copiers have department tracking features that assign print jobs to specific user codes. If your copier supports this, set up separate department codes for each business and run monthly reports to allocate usage. If it does not, you are left estimating, which inevitably leads to disputes about who printed what. This seemingly minor detail has ended more informal copier-sharing arrangements than any other issue. For more on managing your copier costs, see our hidden fees guide, and learn about transferring your lease in our getting out of a copier lease guide.
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