5 hidden office space costs business owners should be aware of

When a small business owner searches for office space for their business, they often assume that the only amount to pay is the cost of the lease. But you have to be very careful when renting office space, as there are several hidden costs associated with renting office space that business owners will not be aware of.

It may be because they are looking for office space on their own or because they are in the hands of an inexperienced commercial realtor who has not explained the terms of the lease and additional costs in detail. This would cause serious problems for them later on, which would make them think about leaving the office space. In some cases, they will not be in a position to vacate the space, as they will have signed the long-term contract.

To avoid these conflicts later on, business owners need to be aware of the hidden costs associated with renting.

So what are those hidden office space costs that you need to be aware of? Check them out here.

1. Maintenance costs

Before signing the lease, you should make sure that it is your responsibility to pay for the maintenance services in the office space. If you have to pay maintenance costs, you need to make sure of the services you will pay for. Maintenance costs may include cleaning charges, services provided by technicians and security guards, repairs, elevator maintenance, parking charges, and other services.

This will often be the responsibility of the tenant and you need to make sure you can afford these costs as they occur down the road.

2. Upgrade costs

You might be wondering what these upgrade costs are! Well, even if you are moving into a newly built commercial space, you may still have to make minor adjustments to the office space to make it suitable for your business and employees. It could be simply changing the office furniture, adding simple wall art to make the space look more attractive, or changing the color of the ceiling.

Whatever the upgrade, the property owner will never be in the picture and you will have to pay out of pocket.

3. Operating expenses

If you don’t analyze the terms of the lease in detail, you won’t be aware of the operating expenses you will have to pay each month. Operating expenses included electricity bills, internet charges, air conditioning maintenance, etc. If it is a shared office space, the expense may also include additional charges for the use of discussion rooms, conference rooms, and booths.

Sometimes these operating costs can add up based on the type of office space and services being used. Therefore, it is very important for a tenant to consider these costs when renting an office space.

4. Tax increase

All commercial leases will have a separate term or clause related to tax and maintenance costs. Sometimes the clause also contains terms and conditions related to the tax increase. Whenever there is an increase in the tax amount, the landlord simply transfers the increased cost to the tenant. Although this is the most common inclusion, it is always good for a tenant to know about it sooner rather than face problems later.

5. Costs for pre-existing conditions

Sounds new to a business owner planning to rent their first office space. The costs for pre-existing conditions are nothing more than the costs that you will have to pay to return the office space to its previous condition if you have made any changes during the lease term. Most landlords want their property to be in the same condition when the tenant moves out.

This cost can be really huge if you make a lot of changes to the property during your tenure. See if such a clause exists within the term of the lease and make sure you are able to handle it before making any major changes to the property.

All of these hidden costs can come as a huge surprise to tenants who have not fulfilled the terms of the lease properly. As already said, it happens when you are in the wrong hands. An experienced realtor takes care of all the terms of the lease and explains them in detail. We are one of those property management firms that stands by your side throughout the deal and helps you find an ideal office space. Contact us for any commercial real estate requirement.