Starting a business entails a lot of planning from what type of products or services you’ll be selling, whether a franchise or your own startup, you will need to figure out about renting office space.
There are several factors to consider, and if you’re not careful, you may end up making costly mistakes that can hinder your company’s growth.
Online resources like us, OfficeFinder, can help you acquire the ideal location for your company headquarters in a particular city. If you’re renting office space for the first time, it is crucial that you are aware of these common mistakes that you must avoid when renting office space.
Not Being Able to Differentiate Needs from Wants
In today’s modern world, many entrepreneurs do just fine in their home offices or with coworking spaces. However, you may need a dedicated office for your business to survive especially when your customers have to purchase your product or service in person, such as in coffee shops or shoe stores.
Not Determining Your Budget Beforehand
There are plenty of commercial locations to choose from, and not establishing a budget before doing your research would only make you run around in circles. Determine how much you’re willing to spend on office space and stick to it. You can filter out suggestions that are too hefty for your estimated cost. If possible, you should be able to pay a full year’s worth of rent upfront and give time for your customers to be familiar with your site.
Not Doing Enough Research
In business, it’s not sensible to make impulse decisions over something as important as your office or shop location. Here is a list of important considerations when renting an office space.
- Rent – Inquire about how the landlord measures and calculates the chargeable square footage. Gather the same information from other possible spaces and compare prices.
- Lease Term – You should be informed as to when the lease will start and when it will end. Would opting for a long-term contract end up with a better deal? Or would you rather have a short-term contract that can be renewed? Landlords will let you know what their preference is depending on their needs.
- Rent Increases – Are they negotiable? How do the owners calculate it? Does the price of the rent increase automatically per year or term?
- Deposits – To secure the lease, landlords often ask for a security deposit, which is usually the rent equal to a specified number of months. You should know how much they expect for that specific commercial space before you decide.
- Cost of Renovations/Improvements – Generally, landlords pay for renovations and improvements on the building and splits the price into the rent. Agree with your landlord over how this process will be done.
- Cost of Repairs and Maintenance – Commercial leases typically let tenants pay for maintenance. Find out the extra fees as well for utilities, taxes, and insurance.
- Exclusivity Rights – This is especially important for retail businesses. You should know whether you have the sole right to rent part of a building or complex and be assured that competitors cannot open a store in the same location.
Not Reading the Fine Print
A major no-no in business is being lazy and irresponsible in going through the contract and not reading the fine print. Review the lease terms, and ask for the help of an expert attorney to look over the document so that you’ll get a better understanding of the contract and its impact on your business. Take note that most contracts are made to be favorable for the landlord.
Not Asking for Help from Brokers
You may be tempted to skip the middleman and purely rely on listings to save on costs. However, real estate brokers can be valuable in the search for your office space. They have insiders’ information on commercial buildings direct from the owner of the property. Plus, they can help you with negotiations for the lowest rates.
Not Considering Customers’ Needs
Your office should be near your customers. It should be easily accessed from freeways or public transportation. Moreover, find a place that has a dedicated secure parking space for both cars and bikes. Your customers will want to go back every time since they can park their cars or bikes without problems.
To do it right, renting office space will cost you time, effort, and financial resources. Make sure that you get your money’s worth by conscientiously going through the nitty-gritty. Think of it as an investment that is necessary for your company to thrive in today’s cut-throat business world.