Every business would like to reduce their expenses, including their office rent. To help you in this, we have some ideas to help you save on office rent. Implement these ideas and reduce your office rent.
Ideas to Save on Office Rent
1. Review if you really need an office
One of the first things to do is to review whether you need an office. You need an office if you have a large team of employees that need to work together. You need an office if you have customers regularly dropping by. If you don’t have these constraints, then you need not have an office. This will help you save the entire rent on the office.
You can have a home office and work from home. If you have a small team, even they can work from home, and you can have virtual meetings. If required, you can hire a co-working space for a day if you need to have client meetings. This will help you save big money every month.
2. Look for sharing options
If you share your office with another business, you can pay a lesser rent. There are many co-working spaces where two or more businesses work from a single address. Each of the businesses is allotted a space with work cabins as per their need. There are common areas like meeting rooms, canteen, etc. Such co-working spaces would have all the infrastructure you need for your office.
It is a convenient way to have an office and save on money. A monthly rental needs to be paid depending on the resources you need. This is a good option to reduce office rent. Other than co-working spaces, you can also choose to rent an office and share it with another business to save money. Sub-leasing is another option when you have a large office with extra space you don’t need.
3. Fix a clear budget
Before you set out to rent an office, set a budget for it. When you start a business, you would make a budget where you make a list of all your expenses and projected earnings. One of the main items in the expenses column would be the office rent. Making this projection will help you fix a budget for your office.
Once the budget is fixed, you can then look for office space within your budget. Looking for office space a bit away from the city center can help you ensure you get an office within your budget. Resist the temptation to get office space that exceeds your budget. Remember, you need to pay rent every month and this can prove expensive.
4. Look for an empty office
There are two options while renting an office. One is to rent a fully furnished office. This is convenient since everything is ready. You can just walk in with your things and start working. However, such an office would be very expensive. If you want to save on office rent, consider renting an empty office.
Such an office would have only the bare essentials. You need to get your own furniture and things. The primary benefit is that you save a lot of money on rent. You can also get the flexibility to design your office as you wish. You can spend less money on interiors. Later on, when your business starts to do well, you can upgrade the office interiors. This is a good option to save money.
5. Keep long-term needs in mind
When renting an office, don’t make the mistake of thinking from a short-term point of view. You may be only concerned about your present needs. But it would be prudent to think long-term. Try to get an office that will meet your requirements even in the future. Have a vision for the future and get an office accordingly.
When you rent an office with long-term needs in mind, you may have to spend a bit more initially. But in the long run, when you expand your office you will save money. This will save the expenses of getting additional offices or looking for a new place later. With a bit of planning, you can save money in the long run.
6. Look around for different options, compare, and then decide
Don’t choose the very first office you see. Look for different options. Start your search early and know your requirements clearly. This will help you find a cheap office to rent according to your needs. If required, take the help of an experienced real estate agent who can help you get a good office space at a good rate.
Check out multiple offices and then compare them. Compare the facilities available, location, and the rental charged. Also, keep in mind any other expenses that would be incurred. Make a comparison before deciding. Don’t forget to negotiate with the owner. Try to get the best deal possible, so you can save on office rent.
7. Check the fine print before signing
Before you sign the contract, read the fine print. This is needed to prevent a nasty surprise later. Some office spaces may have a rent increase clause in the contract. This will oblige you to pay an increased rent after some time. This can work out to be expensive. Negotiate on rental increases and try to ensure a fixed percentage, so you can plan properly.
Check the contract, so you have the flexibility to sublease if need be. Also, ensure there is a cancellation clause included. This will help you cancel the lease if you want to do so for any reason. Look for options to renew the lease on expiry. Find out if the contract allows you the option to renew the lease.
Office rent is indeed one of the major expenses for all businesses. It is an inevitable expense because office space is needed for employees to work, store products, and also invite customers to visit your business. However, spending too much on office rent can affect the bottom line of a business.
The tips in the article can help you minimize your rental costs by assessing your needs for an office space, as well as providing ways to reduce the overall office rental costs.