How to Save Money when Renting Office Space
All businesses need space. Each business has a specific manner in which they set up their business. The office needs for any company renting space will end in them moving, but there are some ways for businesses to get around spending a lot of money for their new space. There are ways to save money on a space of which the company will not be occupying for long.
Profit from someone else’s space.In the age of downsizing, there is plenty of office space for everyone. Some companies may be open to subletting at a discount. This way you can skip having to pay as much money upfront for rent, but you may also be able to skip having to buy new furniture and rent furniture instead with RentaCentre furniture rentals.
If you want a more upscale office it may be within your reach with a little searching and effort. Those who buy bigger space may realize that they do not need so much space.
Join a community. Relocating businesses can receive incentives from some areas and communities. There are economic development zones within the city. The city provides tax abatement programs and loans to bring businesses to them.
With such an incentive you could save thousands of dollars and keep your business in the black.
Sharing. Just as mentioned above, you could share space. In this case, you could ask another business to join you in renting a space. Join a complimentary-to-your-business partner and create an in-house value. You can now share the kitchen area, office machines, a lobby and even a receptionist or secretary.
Make a deal. Instead of full payment or invoicing you could offer your customer (one who is in a space that you really like) a deal to give them discounted services in exchange for space. So now instead of them having to go outside to receive your service, you are now technically in-house and more readily available to them. They save a little money as do you.
Do without. There is always the trusted decision to go without. If your business is not ready to make the financial leap or cannot find any of the deals shared above, then you may simply have to do without for the moment. Instead, you could always go fully digital with staffing or hire only part-time staffing. No need to rent a space for cabinets and chairs that are empty if your clients are not coming in or if you can run your operation better without such a setup.
If you are already in space and can stand to get rid of it, do so. You could save a lot more money on phone lines, computers, and insurances. Your phone bill may double or your internet costs may double, but those overhead costs will not equate to having rented a space that was not being put to use.
Negotiate your lease. No need of accepting the first amount given. You can also hire a broker or lawyer to make certain the contract is working in your favour.
Measure the square footage – don’t just believe that the space metrics given are what you are getting.
Place a cap on rental increases by getting a fixed percentage rate of annual increase. You could also tie the rental increases to a consumer price index, for example.
Ability to have a cancellation clause could save your business thousands of dollars. If the lawyer wants a five-year lease, then you must negotiate for the ability to cancel the lease after three years if you find your business is on another track.
The ability to sublease is necessary. You will want to have this flexibility just in case you grow and have to move, then you can still lease out space.