Office leasing – additional costs

Having an office space could help in accommodating the needs of the business and is a great deal for the growth of your company even if leasing an office adds up to the company expense.

Let’s say you’ve found the right office for you and the monthly rent doesn’t exceed the budget allocated to it.

Aside from the base rent that you are bound to pay monthly, there are still things that need to you need to take into consideration.

What are the additional costs?

Maintenance costs are something you should consider. Just like individuals, it is important to check and inspect your physical office if it needs further repairing; your own office also has its imaginary health bar. This includes paying the janitorial fee, utilities, and even emergency fees that would come along the way.

In fact, a research released by Building Owners and Managers Association (BOMA) stated that the repair and maintenance expenses between the year 2013 and 2014 have increased by 6.2%. Usually, fees for repairs aren’t planned and it takes business owners by surprise when their assets need repairing.

Upgrades and renovations are inevitable in a business. These are costly for the company and these costs are something that requires negotiation between the landlord and tenant to proceed.

There will always be the need to invest in more advanced technology to cope with the rapid changes that are happening globally. Nonetheless, upgrading to having better equipment would increase the efficiency and productivity of the company in the long run.

There are also fortuitous events that can happen in an office space. Of course, this is something out of the company’s hand and oftentimes overlooked to put a budget on. Nonetheless, the company must prepare themselves when emergencies occur in the future.

With the additional costs stated, it would be wise to look through and re-assess if this would leave a financial hole to your business.