Tips For Renting Your First Office Space as a Small Business
Tips For Renting Your First Office Space as a Small Business
Why Should You Rent an Office Space for Your Small Business?
Renting vs Leasing, What’s the Difference?
Tips for Renting Your First Office Space
- Estimate the space you need
- Ask about included amenities
- Compare the different office types
- Explore the neighbouring area
- Avoid legal pitfalls
- Consider your budget
- Look for flexible terms
- Personalize your space
- Observe your business’s growth
- Learn about building maintenance and security features
- Cultivate your company culture
- Be respectful of others using the space
Mistakes to Avoid When Renting Office Space
Pros & Cons of Renting an Office Space for Small Business
Pros of Renting an Office Space for Small Businesses
Cons of Renting an Office Space for Small Businesses
What Amenities Are The Most Essential in an Office Space?
How Much Does it Cost to Rent Office Space?
Mobo Co is the Perfect Office Space for your Small Business
If you’re a small business owner, you may find yourself working from home, but as your business grows, you’ll need a dedicated workspace that fosters productivity and growth. Renting a small office space can help you get work done without distractions, maintain professional decorum, and balance your work-life better. In this guide, we’ll walk you through the benefits of renting office space, how to find and lease commercial office space, things to avoid, and office rental prices.
Why Should You Rent an Office Space for Your Small Business?
Starting a new business or expanding an existing one requires a lot of considerations, including a workspace. One of the biggest decisions is whether to rent an affordable space or work from home.
Distraction-free Workspace
Working from home may sound convenient, but it comes with a lot of distractions. Renting a small commercial office space can provide a dedicated workspace where you can focus on your work without interruptions from family members, pets, or household chores.
Easy to Rent
Renting a small office space is easy and straightforward. You can find available commercial office spaces online and schedule a tour to see them in person. Signing a lease agreement is simple, and you can move in quickly.
Better Work-Life Balance
Renting a small office space can also help you achieve a better work-life balance. Having a designated workspace can help you separate work from personal life, and you can leave work at the office instead of bringing it home.
Professional Decorum
Small office space can provide a professional environment that can impress clients and investors. It shows that you are serious about your business and have the resources to invest in it.
Renting a small office space offers many benefits such as a distraction-free workspace, an easy renting process, better work-life balance, and a professional environment. With the right planning, you can find a small office space that meets your needs and budget.
Renting vs Leasing, What’s the Difference?
Renting and leasing are two different ways to obtain the right to use a property or asset for a specified period of time. In the context of office space, renting refers to an arrangement in which a tenant pays a fixed amount of rent for a specified period of time, typically month-to-month or for a one-year lease term. On the other hand, leasing refers to an arrangement in which a tenant signs a contract to rent the space for a longer period, usually several years, with the option to renew the lease at the end of the term.
The key difference between renting and leasing is the length of the agreement and the flexibility it offers. Renting typically offers more flexibility as tenants are usually able to terminate the agreement at the end of the rental period, whereas the leasing process requires a longer-term commitment. Leasing office space may be more cost-effective in the long run, as landlords often offer discounts for longer lease terms. However, it may also involve more stringent requirements, such as personal guarantees or security deposits, and less flexibility to make changes to the space.
In summary, renting is typically a shorter-term arrangement with more flexibility, while leasing is a longer-term commitment with potential cost savings. The decision of whether to rent or lease office space ultimately depends on the specific needs and goals of the small business.
Tips for Renting Your First Office Space
Renting your first office space can be an exciting and challenging experience. To help ensure that the process goes smoothly, here are 12 tips for renting your first office space for your small business:
1. Estimate the space you need
Determine the amount of space required to accommodate your employees, equipment, and furniture. Consider future growth projections when estimating the size of the office.
2. Ask about included amenities
Find out which amenities are included in the lease agreement. Examples may include virtual receptionist services, telephone answering services, kitchen,business-grade internet, cleaning services, parking spaces, and other extra services.
3. Compare the different office types
Understand the differences between traditional offices, co-working spaces, and flex spaces. Choose the one that best fits your budget and business needs.
4. Explore the neighbouring area
Check out the surrounding area to make sure it’s safe, convenient, and has enough parking spaces. It’s also a plus if it’s near bus and train stations so you know that it is accessible for you, your team, and your clients.
5. Avoid legal pitfalls
Seek the help of an attorney to review and understand the lease agreement before signing. Make sure to understand all clauses, including those related to rent increases and renewals.
6. Consider your budget
Determine how much you can afford to spend on rent and other office-related expenses.
7. Look for flexible terms
Seek flexible lease terms that allow for easy changes to the office space as your business grows or changes.
8. Personalize your space
Choose an office space that aligns with your brand image and allows you to personalize the space.
9. Observe your business’s growth
Anticipate your business’s future growth and choose an office space that can accommodate it.
10. Learn about building maintenance and security features
Ask about the building’s maintenance and security features to ensure your employees and assets are safe and secure.
11. Cultivate your company culture
Consider the office space’s layout and design to cultivate the desired company culture.
12. Be respectful of others using the space
Respect other tenants sharing the same building or co-working space by adhering to the lease agreement’s terms and being considerate of shared resources.
By following these tips, you can ensure a smooth and successful process when renting your first office space for your small business.
Mistakes to Avoid When Renting an Office Space
Here are some more details on each of these mistakes to avoid when renting office space:
Spending too much
One of the biggest mistakes businesses make when renting office space is overspending on rent. This can result in a major financial strain, especially if the business is just starting out. Before renting an office space, determine your budget and stick to it. Don’t be tempted by spaces that are out of your rental price range.
Going too small
While you don’t want to overspend on rent, you also don’t want to rent a space that is too small for your business. Before renting an affordable office space, determine how much space you will need to accommodate your staff and equipment. A space that is too small can hinder productivity and growth.
Choosing the wrong location
Locations of office space are key when it comes to renting an office. Choosing an office location that is too far from your target audience or difficult to access can hurt your business. Consider the convenience and accessibility features by means of public transportation at the location for your employees, clients, and customers.
Missing important lease terms
Before signing a lease, read through all the terms and conditions carefully. Make sure you understand everything included in the lease, including rent increases, renewal options, and penalties for breaking the lease. Missing important lease terms can lead to unexpected costs or legal issues.
Pros & Cons of Renting Office Space for Small Business
Pros of Renting Office Space for Small Businesses
Flexibility
Renting a private office space gives small businesses the flexibility to scale up or down as needed, without the financial commitment of purchasing or leasing a property.
Professionalism
Renting office space provides a more professional environment for businesses when meeting with clients and customers, as well as conducting day-to-day operations.
Shared amenities
Many co-working spaces offer shared amenities such as private conference rooms, reception areas, and kitchen facilities, which can help small businesses save money on overhead rental prices.
Networking opportunities
Sharing common space with other businesses can provide networking opportunities and potential partnerships.
Reduced maintenance costs
When renting a coworking space, maintenance, and repair costs are often included in the lease agreement, which can save small businesses money in the long run.
Suggested Reading: 14 Benefits of Coworking Spaces
Cons of Renting Office Space for Small Businesses
Limited control
Renting office space means that businesses have limited control over the property, including the ability to make changes to the space to fit their specific needs.
Lack of privacy
Sharing commercial spaces with other businesses can lead to a lack of privacy and potential distractions.
Office-space Cost
Rent prices require a significant financial commitment. Access to office space can be more cost-effective than purchasing or leasing.
Limited space
Office space is rented on a per-square-foot basis. Renting office space may limit the amount of space available to the business, which can hinder growth and productivity.
Limited branding opportunities
Renting office space may not provide as many branding opportunities as owning or leasing a property, which can limit a business’s ability to establish its brand identity.
What Amenities Are The Most Essential in an Office Space?
Must-have amenities in office space may include:
- High-speed internet connectivity
- Comfortable and ergonomic furniture
- Adequate lighting
- Heating, ventilation, and air conditioning (HVAC) system
- Printing, scanning, and copying facilities
- Meeting space or conference rooms
- Kitchen or break room facilities
- Restrooms
- Secure access control
- Janitorial services
Additional features may include:
- On-site parking availability
- Fitness center or gym
- Kitchen and pantry
- Outdoor spaces like balconies or gardens
- Mail forwarding services
- IT support services
- 24/7 access to the office space
- On-site concierge services
- Secure storage facilities
- Video conferencing equipment.
The essential amenities needed in your potential office space may vary depending on the specific business needs, the size of the company, and the nature of the work.
How Much Does it Cost to Rent Office Space?
The cost of office space rental can vary greatly depending on factors such as location, size, and amenities. Generally, office space is rented on a per-square-foot basis, with the average cost ranging from a few dollars to upwards of $100 per square foot per year.
Monthly rent vs. yearly leases can also affect the cost of renting dedicated office space. Yearly leases tend to offer lower rates, as landlords prefer longer-term commitments. However, monthly leases offer more flexibility for small businesses that may not want to be tied to a long-term contract.
Co-working spaces, which offer shared office space and amenities, can also vary in actual cost depending on location and amenities. They typically charge on a per-person basis, with rates ranging from a few hundred dollars to several thousand dollars per month.
Additional building amenities, such as high-speed internet, private conference rooms, and parking availability, can also add to the cost of renting your potential office space. However, they may be included in the rental price or available for an additional cost.
Overall, the office-space cost depends on various factors, and it is important for small businesses to consider their needs and budget when deciding on the type and location of ideal office space to rent.
Mobo Co is the Perfect Office Space for your Small Business
On the junction of Merivale and Tribune streets, Mobo Co offers 3,500 square metres of fully connected and equipped flexible workplace across four stories, offering you the most luxurious office space you have ever seen in Brisbane’s CBD. The private office spaces offer stunning views of the Brisbane River in addition to having a lot of greenery and elegant high-end finishes and furnishings. What makes Mobo Co unique is that you can do more than just work here—you can swim in the pool, practice yoga or pilates, have a business lunch, and stay out late.
Mobo Co offers you the flexibility to scale up or down as your business needs change. That’s why our dedicated desk Coworking memberships at Mobo Co start from just $500 a month and private offices from only $700 a month. Our office rental packages are tailored to suit a variety of businesses; prices vary according to the size & amenities required. Contact Mobo Co now for an obligation-free quote or to book a tour.
Suggested Reading: Mobo Co named among Brisbane’s top coworking spaces
Renting a small office space can offer numerous benefits for small businesses. It provides a distraction-free environment, maintains a work-life balance, and enhances professional decorum. However, it’s important to consider various factors before choosing an office space or a virtual office for rent such as estimating the required space, budget, location, and amenities. Additionally, understanding the difference between renting and leasing, and the pros and cons of each option can help businesses make informed decisions. Overall, with the right approach, renting the perfect office space can help small businesses grow and thrive.
