Many small business entrepreneurs looking to rent office space are not sure about how to go about the entire process appropriately. This could potentially cost you a lot in the short or long run, which could even compromise the growth of your business. Office rental is one of the largest expenses a business incurs, which is why doing things the wrong way could be devastating, especially for a small business or start up. It is therefore important to be aware of the common pitfalls in which companies become trapped. They include:
Going It Alone
If you are renting office space for the very first time, it is advisable to hire the services of a reputable tenant broker, especially if you are renting a space measuring 2000 square feet or more. A good broker will assist you select from the thousands of available spaces, examine the numerous lease clauses as well as other variables associated with commercial property. With their expertise, tenant brokers could prove to be valuable assets when it comes to negotiating for the most favorable lease terms; this could even save you up to 25 percent of the total lease value.
As a business owner, you would need to get insurance to cover your inventory, files, equipment and other items stored within the premises. Note that your insurance policy should work in tandem with the lease. For instance, most leases require you to maintain liability and casualty insurance. It would be advisable to work with a commercial insurance agent to discuss your particular insurance needs and determine whether your lease requires insurance before renting office space. Although some rental leases cover certain types of damage including those caused by the age of the building, others cover nothing, leaving you to meet all the insurance costs.
It is critical to ensure that this portion of the lease is absolutely clear – failure to do so could leave your vulnerable to losses in case of a dispute. Ensure that your repair or maintenance obligations as set out in the lease are reasonable before renting office space. Generally, you should expect a few repair obligations such as those of your own property or damages caused as a result of your misconduct or negligence. However, do not agree to a lease in which the landlord insists that you repair or maintain the foundation, plumbing, walls or HVAC system.
Consider the Future
Remember that once you sign the lease, the office space is yours until the contract expires. It is therefore important to carefully consider what your business needs will be in a couple of years. Many renters fail to appreciate the fact that withdrawing from a lease could be very difficult if not downright impossible. Some of the loopholes that would allow you to deal with this include the ability to sublet the space, or the ability to transfer your lease to a suitable property also owned by your landlord. These provisions must be included in the lease – otherwise you would be stuck with the rental obligations for the duration of your contract.
If you need to rent an office in Bangkok visit Rent Office Space. http://www.servcorp.co.th/en/serviced-officesShare on Facebook