Signing Lease Agreement for a Coworking Space: Look Before You Leap!
Even though it is considered an affordable option by many big companies, renting a coworking space is one of the big expenses for a small company. If you are looking for an office space rental, you must be careful to check the hidden costs and restrictions. If not understood or considered, these buried expenses can seriously burn a hole in your pocket. So, look before you take that plunge to rent an office space.
Negotiate for the right price
Before signing any lease agreement, you must calculate your rental along with other business expenses. You should weigh your monthly expenses versus the cash flow of your business. This would help you to set your budget for taking an office space for rent in Mumbai. You should always hire an expert real estate lawyer to help you protect your interests and negotiate for the right price for the space you are renting. However, you need to make sure that the legally acceptable agreements are not turning into bad business deals. You should keep a balance between your budget as well as legalities associated with the documentation for leasing.
Consider the space
If you are taking a small office space for rent, you should calculate the area of usable space. If you are taking a coworking space on lease based on price per square feet, you might have to calculate spaces that are literally unusable. That is the reason you need to check the space and consider its usability before signing the agreement. You should be able to use at least 90 percent of what you are paying for. When taking an office on rent in Mumbai, you must, therefore, consider three things:
- Landlord’s method of measuring the area
- Physical configuration and usable area in the space provided
Choosing the area carefully
When calculating an office space for rent in Mumbai, you might have to consider a portion of the common space in the lobby, a portion of stairs and elevators and closets. However, it is better not to choose a small office space for rent with fancy curves and angles. If a space has an abundance of pillars and columns, you might have to include a lot of unusable spaces. Consider whether the unusable area in an office on rent in Mumbai will in some way satisfy your business needs. You should be careful in choosing a space for rent otherwise you will end up choosing a fancy office with less of actual space to accommodate all your employees.
Calculate the operating expenses carefully
When you are taking a furnished office space on rent, you need to include operational costs as well. Expenses like telephone, electricity, and maintenance of the space are often included. However, be careful not to include expenses of other companies’ spaces within your lease. Carefully mark the area you are leasing and the services you are opting for.
Above all, if you are taking a space on lease for a long period of time, remember the rent will increase with time. Probably, the next year there will be an increase in the rent you pay. It is better to talk about it now and understand the escalation formulas of the landlord.