Prices and your Lease Office Space, How Does it All Add Up?
Don’t start your business on the wrong foot, and learn about how much it really costs to lease office space.
Finding the perfect lease office space for the right price isn’t something that you can do overnight. It requires a ton of planning that sometimes requires months or even years before you find the right place. But how much money should you really be setting aside for your office rent? You need to find an area that not only places your business in a great position to earn you more money but in an area that won’t literally cost you an arm, a leg, and two kidneys.
Listed below are a few financial responsibilities that you need to keep in mind when you’re figuring out the total expense that you would have to deal with the moment you start considering leasing the commercial office that you have in mind:
Utilities and cleaning costs
Maintaining an office, let alone an entire building is difficult as you will need to make sure that anything broken can get repaired right away to avoid any mishaps at work. You need to make sure that you aren’t moving into a commercial building that’ll give you more trouble than it’s worth. Sometimes a lease office space provides their renters with fully furnished workspaces which just ends up making the area a bit pricier than most. Another thing you should think about is if your lease contract includes cleaning. A majority of building owners nowadays rely on a cleaning provider to take care of all the offices with the building’s premises but if the building that you’re looking into doesn’t offer that then that’s one expense that you.
Building Insurance and business rates
First of all building insurances are provided by your office provider. The only thing that you should be remotely worried about is your contents insurance. A particular rate that you need to think about is the business rate which is normally applied as your company’s name is on the lease. There are a few good choices you can make when coming up with monthly installments, and in terms of small businesses, some of them may even be eligible for government-backed business rates relief.
Other administrative fees and possible deposits
Just like renting out an apartment, you need to be able to come up with a deposit and a few extra fees. Just be sure that you seek out legal advice from a capable professional who can assess any documents pertaining to the lease before you sign on the dotted line. In terms of your deposit, it’s an expense that should be refundable provided none of the clauses of the rental agreement is breached and the equipment provided is not damaged.
The overall lease office space is normally calculated based on per square foot, so it is important that you decide on the size of the office that you want all while considering the number of people that you want working in it. Space calculators would usually suggest 95 square feet per person for a standard office space environment.