More people are choosing to lease their office space rather than having to afford the huge capital investment in buying offices. There are benefits on both sides when it comes to leasing office space. There is more flexibility when you lease rather than buy office space because if you aren't happy with the area then it is easier to relocate once the lease has expired. You will also have fewer responsibilities with regard to maintenance etc as these will remain the duty of the landlord. Payment on your lease can be regarded as a legitimate, tax deductible expense. When you opt for leasing office space rather than buying it you will relieve yourself of the worry of a mortgage.These benefits notwithstanding there are a number of things that you should consider before you finally sign the office lease.
Before you settle on a particular office you should look at four or more properties to assess which landlord or company will offer you the best rates. Most leases run for three years so you need to be sure of what period you will want to lease the office space.
Look for a property that has extra space if possible because this may come in handy should you decide to expand your business.
Make sure that the office you lease is in a location that is favorable to your business. If for example you are offering legal services then you might want to be located near other businesses of this type.
Find out whether it will be possible to sublet the office if things don't work out for you as this could save you having to pay a penalty for closing before the lease period is finished.
If the building suffers damage while you are leasing the office space then try to find out what your liability will be and how much you might be expected to pay. Some leases come with an inbuilt insurance which protects you against such an eventuality.
Is there a cap or maximum value on the rent so that your rent will not increase beyond that amount.
Get yourself some renter's insurance as this will cover you and your staff if you suffer damages while in the building.
You should have a real estate consultant or lawyer look over your lease agreement before you sign it.
You should also check how much you would have to pay towards utilities such as garbage removal, electricity and water.
You should consider all of the above before you decide what sort of office space you are going to lease and where. Once you have decided this and you have the lease agreement in front of you then you should make sure that you read it right through, including the small print, before you add your signature. Once a lease is signed then you become the legal tenant of the office and it is not as easy to get out of a lease agreement as it is to get into one.
