The 3 Biggest Mistakes Made When Renting Office Space
Posted by Guest Author on February 1, 2013 in Business Management [ 0 Comments ]
For most businesses, renting office space is a major commitment; most businesses only have to go through the leasing or renting process every 3 to 5 years.
While the cost of your office space lease will significantly affect your bottom line, it also has many other important consequences including employee satisfaction and customer impressions. You want to make sure you don’t make any costly mistakes.
We, at OfficeFinder, with the help from over 500 of our tenant representative members have identified the three biggest mistakes tenants make when leasing or renting office space.
No Tenant Representative
The first biggest mistake tenants make is not engaging the services of a tenant representative; thinking that they will have to pay to do so. This may sound self-serving, but the fact is the service is free to those looking for office space.
- Their fee is paid by the landlord, similar to the way a residential buyer broker is paid by the seller. The fees are typically already negotiated by a listing agent and are then shared with the tenant representative. So, it costs the tenant nothing.
- A good tenant representative is invaluable in making sure you not only find the right office space and negotiate the best possible deal but to make sure you avoid costly mistakes. Keep in mind that tenant representatives do this every day and only get paid when you get what you want. A good office tenant rep will not only find suitable alternatives, but also help you negotiate the best deal, provide valuable information, advice, space planning and lease review.
Not Enough Time
The second biggest mistake tenants make when Renting office space is not allowing enough time to get the process completed. Far too often tenants don’t get started early enough and have to settle for less than what they could have had otherwise due to time constraints.
Of course, this only applies for tenants who are looking for conventional space and not executive suites, virtual offices or Coworking space which are available for small businesses typically on a next-day basis.
- A good rule of thumb is to start the process at least 9 months before you need to move in. The larger the office space requirement the more time should be allowed.
The third biggest mistake tenants make when Renting office space is not understanding all of the costs involved and who should be paying for them. There is much more you’ll need to pay for other than the rent. Many of these costs are quoted in different fashions so it can get quite complicated when comparing alternatives.
Related: Get Office Furniture Like a Startup
It becomes difficult to compare proposals on an apples-to-apples basis. In fact, it even becomes difficult for an inexperienced tenant representative to decipher the various costs involved in comparing different office space alternatives. Find out more regarding office space costs.
Making sure you avoid these mistakes, especially number one, will cost you nothing, but can save you thousands.
By: James Osgood, Founder OfficeFinder.com. Since our start online in 1995 OfficeFinder has assisted over 225,000 businesses with their office and commercial space needs.