Renting an apartment, a house or a vehicle can be tiresome but renting an office spacecan get complex when compared to the others. A good amount of investment isset aside while renting an office space. Hence, an organization must choose the correct space in order to avoid locking of capital towards an incorrect deal,which can ultimately affect the whole business and even break itat times. Things You Must Know Before Renting an Office Space
1. Budgeting -You must have a clear vision towards the growth of the business. It is important to understand how capital is obtained and where it needs to be utilised. Clear understanding of how much fraction of the capital is required for each function including the budget that is needed for renting an office space.
2. Costs -The rent of most commercial spaces will depend upon the location where you intend to set up office. The market favourability, market conditions, amount of development in that particular region and proximity to resources will directly affect the cost of an office space. In addition, cost will also vary depending upon the nature of space you want to rent such as a conventional space or flexible serviced option.It is not enough to agree to the monthly rent of the spacebut rather you need to understand the total upfront costs. Some of the additional costs that you might incur during the rental process are:
Security Deposit -This is usually a fixedamount that is paid while signing the contract. The amount could vary anywhere between 1-12 months of rent.
Lawyer Fees -All leases require a rental agreement that should be reviewed by a qualified lawyer and this will add to the cost.
Furniture Cost -Be it a home or an office, any new space will require full or semi-furnishing with the basic items and this too adds to the cost which needs to be planned for.
Parking Fees -Unless the office space has its own parking facility around the building, you will need to sign a deal with a nearby parking facility. This is another additional cost incurred by some organizations.
Communication Cost -These days business is impossible without telephones and internet. Getting proper and good high-speed connections are very important for the business to run smoothly and this incurs cost.
Insurance Cost -Generally, it is wise to secure a good insurance policy to protect your business from eventualities and this adds to the list of total costs.
3. Policies -Understandall terms and conditions associated with the rental are very important. You must be aware of policies regarding moving into and moving out of the office space in order to avoid any last minute problems. Also, know how much will be charged as penalty for breaking the contract and whether you will be able to afford it if the situation arises.
4. Space Requirement -An in-depth analysis of how much space is actually required to set up the business must be carried out in order to avoid wastage of excess space and to prevent over-crowding in the office. For this understand the maximum occupancy rates, anticipate future hires, amount of furniture and space shapes to be accommodated. 5.Amenities Included -While leasing a space, know what all utilities are provided by the property owner.
6.Amenities Required -Accommodate for all the utilities that will be required in-house such as a cafeteria, washrooms, storage, conference rooms, security and housekeeping provisions based on the type of organization you are dealing with.
7. Location Study -A good office location will have public transport easily accessible around the area. Moreover, the location should be close to its resources and make it easy to associatewith its potential partners.
8. Own or Co-work -When budget allocated for the office space raises doubt then you must decide whether to own an entire office or whether to co-work. Co-working only incurs a fraction of the total cost kept aside for an own space.
9. Terminologies -It is very important to know the meaning of certain words that are commonly used in the world of real estate so that you understand the Terms and Conditions well.
Length of theLease Agreement-This is usually mentioned in months.
Base Rent-This is a core factor in the overall costing of the rent. This can either be a fixed amount throughout the rental period or can increase by a certain agreed percentage.
Rent-This includes the base rent plus otheradditionalcosts like maintenancecharges.
Option-It is the right of the tenant that allows him to extend the lease undermutually agreed circumstances.
Concessions-This includes incentives that are offered by the property owner such as free parking, internet connectivity, signage and other amenities.
Tenant Improvement Allowance-It is theamountthat the property owner spendsout of his own pocket to renovate the leased space, such as painting,flooring, doors and others.
Deposit -For security purposes, most rentals charge a fixed initial payment before signing the lease agreement. This is a refundable amount but may be deducted based on the amount incurred for damages on-site.
Rent Commencement Date-This is the exact date when the lease commences and the first cycle of the rent period begins.
So,if you need a suitablespaceto rent for your office then check out this site to know what suits you best.