Lease agreement terms can be confusing, but they’re worth paying attention to. If you don’t know what you’re getting yourself into, that could cost you in the long term — and not just financially. Negotiating the duration of your office lease will help determine your working environment and how much you pay in the end. It’s also essential to make sure your lease is appropriate for the size of your company and whether you’ll be using it as a place of business or simply a headquarters. Here are some things to consider before signing any agreement on office space for rent.
1. The lease term.
Your lease agreement should include how long you’ll be required to use the leased space. It’s also important to note how frequently you’re allowed to break that lease or if you have the option. The minimum lease term is generally six months. However, there are exceptions to this rule. Sometimes, if the landlord has a high occupancy rate, they will allow shorter lease terms to attract more tenants.
2. Security deposits.
Your landlord may require you to provide a security deposit as collateral for any damages incurred during your time in the office space for rent. The amount of your security deposit will vary depending on several factors, such as if your landlord is a private owner or if they are a national real estate firm. Your security deposit is held to pay for any damages that occur during the lease term, and once you move out, you may not get it back.
3. Tenant improvements.
Don’t be surprised when you have to foot the bill for any tenant improvements and outfitting of the leased property. These tags can range anywhere from a few hundred dollars to upwards of thousands. Additionally, you may have to pay for these improvements long after you move out if you disagree with the landlord’s assessment of the condition of the space.
4. Building insurance.
If your office is located in a larger building, you may be required to pay building insurance that covers damage or injury that occurs when people are present or after hours. This insurance can cost anywhere from $50 to $500 annually.
5. Rent.
This is the most critical part of the lease agreement, and it will vary from landlord to landlord and location to location. The amount of rent you owe every month will be determined by things like your total office space for rent, square footage, and commute time to work. These things will be used by landlords to calculate the monthly market rate for that type of building.
6. Rights to use common areas.
In some office spaces for rent, you may have the option to use common areas like a conference room, bathroom, or kitchen area. Depending on your lease agreement, you could be liable for any damages that occur in these areas. It’s important to read your lease carefully before using these common areas so that you’re not surprised by additional charges at the end of your lease.
Conclusion.
The information in the article above explains the six most important things to know before signing a lease for office space in Singapore. By employing these tips, you will be able to secure your office space for rent and ensure your needs are met, whether they are short-term or long. You can find more information on commercial leasing by contacting property managers.
