Important note when renting an office to get the best benefit

News & Events

21/06/2019

Important note when renting an office to get the best benefit

Renting an office is one of the important steps in running a business. However, in the process of finding offices for rent, businesses often face mistakes that make the office lease less effective. Below we would like to share a few things to remember to limit the unfortunate mistakes that may occur and the more efficient rental of offices.

Don't just care about office rent

Many businesses and tenants in the process of finding and renting offices only pay attention to office rental rates and high and low comparisons but do not know that the actual rent is only a part of the total cost that customers must pay to operate a work space. So stop building selection based on unit price comparison. Please summarize all kinds of expenses below:

Rent cost
Service charge
Electricity regulation
Electricity consumption in the office
Parking and motorbike parking fees
Overtime costs (if businesses regularly work overtime)
Tax

Only when synthesizing and estimating the total cost can you make the most accurate assessment of the office rent and choose the building that best suits your finances.

Don't rush to make a reservation if you haven't negotiated a contract

An office lease negotiation routine will consist of two steps:

Step 1: Sign an invitation letter to rent and transfer a deposit of a deposit equivalent to 01 month of office rent

Step 2: Sign an office lease contract and transfer the deposit equivalent to the next 02 months of rent.

However, it is a fact that most buildings do not regulate all issues related to the cost of the customer to pay in the lease letter, so tenants are easily confused and calculate the total cost. So ask the building owner to submit the draft Contract and negotiate all cost issues and terms before proceeding to make a deposit. Because if you have made a reservation deposit but have not negotiated, tenants are more likely to fall into a weaker position in the negotiation and contract negotiations later.

Consider other proposals instead of paying attention to rents

Not every building can easily reduce office rent, and it is not possible to reduce prices deeper than the present as this also affects the interests of customers who have rented offices in the building. But instead of just focusing on negotiating the rental price, you can switch to negotiating other cost items because after all, the total cost of the customer includes all the costs in the contract. Some incentives can be considered:

Calculating overtime costs is most beneficial for businesses

Depending on the building, there are different ways to calculate overtime costs. There are three main ways to calculate overtime fees:

Calculated by office: Example 300,000 VND / office / hour
Calculated by office rent area: Example 0.02 usd / m2 / hour * Area rented
Calculated by device usage: Example 10 usd / unit / hour, usually a unit (FCU - Fan Coil Unit) cooling for an area of 40 - 70 m2 depending on the type of equipment.

Normally, the method of renting office space will be more economical than the equipment used. But for many buildings, customers who do not use central air conditioning will be entitled to free overtime work. Therefore, your business should rely on the need to do more or less to negotiate the best way to charge yourself.

If in the case the building charges overtime fees based on usage air condition and cannot negotiate lower cost, then the enterprise can install the local air conditioner by itself (if technical conditions permit) to can reduce overtime costs.

Negotiating overtime fees based on area

If an office building charges overtime based on an area of $ / m2 / h, you can take advantage of the rented area to negotiate as large office leasing area can give you incentives to reduce the cost. overtime. Or if the building is calculated according to the whole office area, it is possible to negotiate a lower fee, for example 300,000 VND / office / hour, it can be negotiated down to about 200000 / floor / hour. Usually with large office rental units and long term contracts will be prioritized by building owners, the negotiation will also be easier.

Please apply for extra hourly incentives

In fact, many buildings do not have a specific rate for overtime work and are usually based on tenants' agreement with the landlord. This is an advantage for office tenants to comfortably negotiate the most beneficial terms for themselves and don't forget to ask for more incentives. And often the courts will also create the best conditions for businesses to benefit both sides. For businesses who regularly work overtime can consider and negotiate the time of administrative hours.

For example, the building regulations from 7:00 to 18:00 from Monday to Friday and 7:00 to 1:00 on Saturday, you can ask the building to increase administrative hours, to save overtime costs. In fact, negotiating contract terms is based on interests and interests on both sides, but certainly buildings will have flexible solutions to make both sides mutually beneficial.

The information to learn to "grasp" the winning part when negotiating office leasing

Office leasing is one of the most important steps to ensure that businesses can rent offices most efficiently and economically. However, the negotiation with the landlord wants to achieve satisfactory results, the business also needs to know some information to get the best position in the negotiation. Below Officespace.vn would like to share the information you need to learn to "grasp" the winning part when negotiating office lease contracts.

Advantages and disadvantages of office buildings for rent

First of all, you need to know the advantages and disadvantages of office buildings for rent. Because this is important information to ensure businesses can gain good advantages to negotiate. To get the information to analyze these advantages and disadvantages, of course the support of the office leasing agency is extremely important. Please ask the consultant to hire a summary of the building information, evaluate and give plus and minus points for easy negotiation. And based on the limitations to negotiate with the landlord the best terms for the business.

For example: the location of the building is not really central and the traffic is not convenient, which can reduce the rent to a lower level. Or the rent is not square, there are many dead corners ... can be deducted from the rent ...

The area of empty space in the building is more or less

Knowing the vacant area in the building is more or less good is a benefit for you in negotiating office leasing. For buildings with many vacant spaces, the owner of the building will often give more incentives to businesses because they want to speed up the process of renting offices, optimizing business. So businesses will easily negotiate and easily convince the building to get the most favorable terms for themselves

Is the premises for rent empty long?

With premises that have been empty for a long time, often the owners will want to promote the negotiation and lease of offices to achieve the best results. Because long-term vacant space also means that the revenue of the building owner is affected. Therefore, customers will have more advantages in negotiating. In contrast to the new vacant premises, enterprises can choose the psychology of the building and type in the psychology of wanting to hire quickly to exploit business.

The rate of displacement of office tenants and reasons

The rate of transfer of office tenants is high or low? And what are the reasons for moving offices? Usually a building has an additional space, unless it is a new building, most of which there will be a few new units to move to the new office. If the building has a high percentage of tenants who terminate the contract, the building owner tends to stimulate demand and bring more incentives to tenants.

Rents and other costs of buildings in the same area

Of course, it is indispensable to summarize the rental fees of buildings in the same area to create advantages when negotiating. If the building has a higher price than the regional average, you can rely on it to negotiate lower rates.

For example, you plan to rent an office on Duy Tan Street, and knowing about the area is a lot more empty and more attractive. Then this information will be extremely useful when negotiating with the lessor because the building often does not want to lose guests.