Wednesday, May 7, 2014
Office space rentals are a necessity for a lot of businesses. Deciding which property to rent may affect your business, as rental fees make for a large monthly overhead expense.
Here are four practical tips to consider before committing to an office space…
Know your space requirements
Before you shop for an office rental it’s important to already have an idea of how much space and what types of amenities your business needs. This will help cut down on time spent on looking at properties that don’t fit your needs.
Consider the type of office you need
Assess the number of rooms and conference rooms in the potential office. When it comes to floor layout, you’ll have to consider the nature of your business. Some businesses may operate more smoothly with every employee given some privacy, as in cubicles or separate rooms, while creative businesses thrive in an open plan layout to foster collaboration and exchange of ideas. Renting an office space with a floor layout that matches your office needs may make for less time and money spent on renovations.
Examine your budget and total expenses
For businesses, sticking to the budget and minimizing expenses are top priorities. Renting office space makes for a regular overhead expense. Be sure to factor in all the expenses when considering your budget. Aside from the actual rental fee, there are also electricity, water and other utility bills to think of.
Assess lease terms thoroughly
Examine the terms of your lease contract thoroughly. Look out for conditions on tenant responsibilities such as repair and maintenance costs. Check how much rent increases are and when they are going to be applied.
Try to negotiate flexible options. Early exit clauses may come in handy in the event that your business needs to move to another space. On the other hand, it may be difficult to be forced to move to another space as soon as your contract expires. Negotiate terms such as an option for lease renewal, to have better flexibility to continue your business operations in the same office. Permission for subleasing is another good option to have, as subleasing extra space in your office can help minimize costs.