Working out the true cost of renting office space
Are there any costs you’ve overlooked when looking for your next office? Check for yourself with our helpful guide.
It’s easy to lose track of all the costs involved in securing a new office. Our guide lists those expenses you may have overlooked and offers a clear explanation for each…
Rental costs and service charges
Rental costs are usually given on a per square foot basis. It’s important to decide on the size of space you’ll need, not only for now, but for the future. Space calculators suggest 95 square feet per person for a standard workspace.
Consider the arrangement of space, an open plan office could work out cheaper than the same space arranged over small rooms. When renting an office from a larger block or complex, you can also expect service charges to be added to your costs. These will cover maintenance and repairs as well as contributing to building insurance, so make sure you factor these in.
Administrative fees and deposit
Administrative fees are standard practice, and often apply when drawing up a contract. If you’re looking to rent from a landlord (rather than serviced offices) make sure you seek legal advice before signing a lease. As for the deposit, you should expect to pay roughly a month’s rent for serviced and traditional offices before moving in. This should be fully refundable.
Buildings insurance is usually the responsibility of your office provider. If you’re the only tenant in the building, confirm this by checking your lease. Your main concern is contents insurance – remember to shop around for the best quote.
Business rates apply as soon as your company name is on the lease. Think of them as a tax based on the property’s rental value. You can choose to pay these over 10 monthly instalments, and smaller businesses may be eligible for the government-backed business rates relief.
Utilities/energy bills, cleaning costs and furniture
Most conventional offices include heating and water in their costs. Moving into the premises could mean you’re tied into a ‘deemed contract’; these are often 80% more expensive than standard deals.
Cleaning costs are usually covered in your rental, especially for businesses sharing an office location. Check your lease to confirm this before untidiness takes over. Desks, chairs and cupboards are usually included in fully-serviced offices – it’s best to find out what furniture is provided early on to allow for lengthy delivery waiting times. All of these costs should be considered before you move into the property to avoid any nasty surprises.
Run your business, not your office with our all-inclusive flexible workspace
At BE Offices we look after everything to ensure you can focus on what you do best – running your business. Our highly acclaimed all-inclusive office package includes industry-leading IT connectivity, free calls and instant access to a thriving business community.