When a small business owner is looking for office space for his / her business, he / she often assumes that the only amount payable is the cost of the lease. But you have to be very careful when renting office space as there are several hidden costs associated with renting office space that business owners will not be aware of.
This may be because they are looking for office space themselves, or they are in the hands of an inexperienced commercial real estate agent who did not explain in detail the terms of the lease and the additional costs. This would end up in serious trouble for them later, which might make them think about leaving the office. In some cases, they will not be able to leave the space because they will have signed the contract for a long time.
In order to avoid these conflicts later, business owners should be aware of the hidden costs associated with rent.
So what are these hidden costs of office space that you need to watch out for? Discover them here.
1. Maintenance costs
Before signing the lease, you should make sure that it is your responsibility to pay for office maintenance services. If you have to pay the maintenance fee, you need to make sure of the services that you will pay for. Maintenance costs may include cleaning costs, services provided by technicians and security guards, repairs, elevator maintenance, parking fees and other services.
This will often be the responsibility of a tenant and you need to make sure that you will be able to afford these charges as they arise.
2. Upgrade costs
You might be wondering what these upgrade costs are! Well, even if you are moving into a newly constructed commercial space, you may still need to make minor changes to the office space to make it suitable for your business and your employees. It could be simply changing the office furniture, adding simple murals to make the space more attractive, or changing the color of the roof.
Regardless of the upgrade, the owner will never be in the picture and you will have to pay out of pocket.
3. Operating Expenses
If you don’t go through the rental terms in detail, you won’t be aware of the operating expenses you will have to pay each month. Running costs include utility bills, internet charges, air conditioning maintenance, etc. If this is a shared office space, the charges may also include additional charges for the use of chat rooms, conference rooms, and booths.
Sometimes these operating costs can add up depending on the type of office space and services used. It is therefore very important for a tenant to keep these costs in mind when renting an office space.
4. Tax increase
All commercial leases will have a separate term or clause related to taxes and maintenance fees. Sometimes the clause also contains terms and conditions related to the tax increase. Whenever there is an increase in the amount of tax, the landlord simply passes the increased cost on to the tenant. Although this is the most common inclusion, it is always good for a tenant to know this before rather than facing issues later.
5. Costs of pre-existing diseases
This sounds new to a business owner who is considering leasing their first office space. The pre-existing state costs are nothing more than the costs that you will have to pay to return the office space to its old state if you made any changes during the term of your lease. Most landlords want their property to be returned to the same condition when the tenant moves out.
This cost can be really huge if you make a lot of changes to the property during your tenure. Check if such a clause exists in the term of the lease and make sure you are able to manage it before making any major changes to the property.
All of these hidden costs can come as a big surprise to tenants who have broken the terms of the lease. As already said, it happens when you are in the wrong hands. An experienced real estate agent takes care of all rental conditions and explains them to you in detail. We are one of those property management companies who stand by your side throughout the transaction and help you find a perfect office space.
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