As the saying goes, the devil’s in the details. Look over your rental agreement with a fine-tooth comb before you add ink to the contract.

By performing due diligence, you may uncover clauses highlighting hidden costs that could trip you up later and potentially cripple your business.

These extra costs shouldn’t prevent you from leasing your ideal workspace but being mindful of them gives you wiggle room to budget carefully and plan for the future.

We’ll outline what these additional monthly expenditures could be and take a detailed look at alternative workspaces to traditional offices for those not wanting to take on the responsibility and headache of running an office.

Upfront Costs

Similar to renting personally, to lease commercially, you should expect to pay a substantial deposit. The deposit refers to the number of month’s rent decided by the landlord, a sum that ranges between three and six months, subject to the length of occupancy and other potential extraneous factors.

This is a large chunk of change and may not be an affordable option for young businesses.

Length Of Contract

During a time of increasing turbulence, the only constant for any business is change.

Since it’s impossible to reasonably determine a headcount of employees or forecast the company’s status a few months or years down the line, being locked into a lengthy lease is highly risky.

Often, traditional leases lock companies into binding leases that account little for business growth or possible collapse. What’s worse is that the penalties for terminate a lease early could be exorbitant.

Before signing your signature, ask yourself whether you can commit to two, five or even ten years, acknowledging the unpredictable economic climate.

Before signing your signature, ask yourself whether you can commit to two, five or even ten years, acknowledging the unpredictable economic climate.

Annual Rent Hikes

It’s normal for monthly rentals to be increased incrementally every year.

Usually, the average percentage increase sits between three and seven; anything more and alarm bells should be ringing. Rises in rent that seem inflated and largely unjustified should be explained and clarified by the person leasing you the space.

If you’ve found a top workspace in a strategic location with a low price tag attached, it may be a “too good to be true” scenario. Scour your lease agreement for estimates on how much rent will be bumped up by come year-end or reach an agreement over what is an appropriate annual increase before you finalise the deal.

Electrical Reviews Or Surveys

Landlords are entitled to perform electric reviews or surveys, which tests how much electricity your company uses. This may seem like a reasonable investigation. However, what you might not know is that all electrical appliances are tested at full throttle and after hours, even office equipment that’s rarely used or customarily utilised in a restricted fashion.

This may result in a hiked utility bill you hadn’t anticipated that doesn’t mirror your typical consumption habits.

Requires Expertise You Lack

Creating and customising your workspace takes time, effort and will cost you money. The workspace might be fitted with office equipment, desks and chairs, installed with internet and stocked with kitchen appliances, tea and coffee.

And since these are big tasks needing to be executed, someone in a position of authority needs to be put in charge.

You don’t want you and your second-in-charge distracted from the role he or she was intended to design the office.

Although it may be an expensive option in the short term, hiring an architect or skilled expert is a wise decision that allows your employees to focus on what they’re paid for - their jobs.

Creating and customising your workspace takes time, effort and will cost you money.

How Can You Prepare For Unforeseen Costs?

Taking a hard look at your contract isn’t enough as you may not know what to look for, which is why having a legal representative at your side to spot unusual clauses that must be negated is crucial.

A legal professional experienced commercial rental estate agreements will help negotiate your terms while providing you with a rough ballpark figure on how much you’ll pay monthly or annually, warts and all.

Have You Considered Other Options?

Relocating your business to an office space is a significant professional milestone.

However, maintaining an office is an enormous task on its own that draws your attention away from running a business and costs money.

Benefits of flexible workspaces

1. Fully Functioning Offices At A Fraction Of The Cost

Working from flexible workspace grants you the best of both world; a self-contained private office equipped with modern amenities and utilities, all without the responsibility of running an office where everything falls to you.

You’ll no longer have to worry about paying for miscellaneous expenses because everything’s included in your comprehensive rental package.

From IT and front of house assistance through to high-end spaces powered by lightening-speed internet connections, all that you need is supplied and provided for so that you can focus on the bigger picture of growing your business.

2. You Won’t Get Trapped In An Uncompromising Lease

Traditional leases are notoriously lengthy, and under our current economic climate, there’s plenty of risks associated with committing to a lease that spans years.

Flexible workspaces are more attuned with modern businesses changing demands, offering versatile memberships for the short and long-term.

Rent an appropriately sized space only for the time you need it, with the option to scale up or down as your business grows or shrinks. Choose from a wide array of offices that accommodate your size and layout requirement without compromising on anything.

3. Move In Immediately

Moving into a traditional office including numerous nitty gritties and delays that may push back your intended move-in date by weeks or months, thus interrupting the flow of your business.

You won’t face the same obstacles when relocating to a flex space once you’ve found your ideal home for your company.

Flexible workspaces are more attuned with modern businesses changing demands, offering versatile memberships for the short and long-term.

Let us guide you

We know the search process for a new workspace can be overwhelming, that’s why our team are here to help through every step of the way.