When finding an office or a location for your business, there are many factors you need to consider. One is to examine differences, advantages and disadvantages of the different office types. You should study which one fits your business and that will help increase productivity and success rate.
After deciding which type of workspace would work best for you, the next order of business is location, location, location. But what are the requirements you need to prepare?
Things to prepare when renting an office
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- Corporate papers – these include the articles of incorporation, by-laws, board resolution, business registration (licenses and permit).
- Identification – thus would provide proof of owners and incorporators
- Credit card account information
- Leasing contract – this document will contain the rental amount, length of occupancy, terms and conditions, regulations
- Termination requirements, utilities inclusion etc.
- Application Form – must be duly filled-up
- Security deposit – is money that will you will get back after the lease term. It will cover cost of repairs or any damages to the office at the end of the contract.
- Advance payment – may vary depending on standards
Steps to Leasing an Office
Find a Real-estate broker
Before diving in the search for location, it’s best to find a trusted and reliable real estate agency that can help you narrow down your choices with ease and meet your demands and requirements.
Approach a Realtor Agent
These days, there are a lot of brokers to choose from. There are also multiple and flexible locations you can work from. However, having a reliable real estate agent can help take care of your rental apprehensions.
Application and Negotiation Process
Be vigilant about the charges that include electricity, speed of internet connection, building infrastructure, facilities and neighboring companies.
Assessment and Evaluation
Regardless of your interest and willingness to pay, property owners need to perform client- assessment and background checking to ensure legitimacy of prospective tenants.
Contract Completion
Before signing the legally binding contract, you must double-check the terms and conditions thoroughly. Usually, you as a tenant will be subjected to a lock-in period of time imposed by the owner/lessor
Office Installation
Canvas office furnitures that are suitable for the office area you have chosen. Both cost and work efficiency should be taken into consideration.
Definition of Terms:
What is Security Deposit?
This is a definite amount of money paid in advance by the interested lessee to the lessor to secure the binding agreement between the two entities. This entails assurance on the part of the lessor guaranteeing an official contract. This would also prevent the lessor to lease the area to someone else during the agreed period of time.
What is Amortization?
Amortization is the process of decreasing the value of an asset over a period of time. Depending on the contract, some property owners amortize the withhold security deposit yearly. In other countries like Japan, amortization rate ranges from 10% to 20%. This means that as a tenant you have to add the agreed rate as additional charge to your deposit.
