If you are a business owner or a startup looking to give your company an office to work in, then the cost of renting will be an important consideration. However, you should know that the total cost of renting an office not only covers the monthly rent but also includes many other types of fixed and variable expenses.

Are you wondering what those types of expenses include or are you able to cut some to save costs for your company? Let’s find out through Officespot through the article below!

The group includes fixed costs 

The group includes fixed costs

First, we need to understand the fixed costs that we need to pay when renting an office. Many of us still think it only includes the monthly, quarterly or yearly rent for an office but that really doesn’t cover everything.

  1. Office rental expenses over time

Firstly, in the fixed cost group, of course, it must be the office rent calculated in m2 and depending on the agreement which you can pay by the month, quarter or year. Before deciding to enter into an office lease with the lessor, you should pay close attention to the terms of the lease regarding pay period as well as payment methods or late payment items, deferred payment, …

  1. The accompanying service fee

This is also one of the items that you need to pay attention to when deciding to rent an office for your company. These service charges include utilities such as reception, security, water, sanitation, greenery, etc. Depending on the rental unit, the prices of these services may vary slightly.

There are also a few other general costs that you need to be aware of, such as the electricity cost of the building or the monthly parking fee for your employees, etc.

  1. VAT

Taxes charged for office leasing are fixed and calculated as a percentage of the office rent prescribed by the government in value-added tax dispatch.

Group of expenses is not fixed which vary according to actual use

Group of expenses is not fixed which vary according to actual use

  1. Costs for air conditioning system

Depending on the office leasing unit, whether or not the air-conditioning money has been accounted for in the above-fixed expense category. If you rent an office in a Grade A or B building, the air-conditioning bill is included in the above-fixed costs. If you rent an office in C-class buildings, you will have to pay an additional charge for air conditioning depending on the usage time and the type of air conditioner.

  1. Electricity costs that your office uses

Electricity costs are not fixed but depend on the amount of electricity your company uses during the month. Therefore, you can also calculate the amount of electricity that you have to pay that month to compare and make the appropriate decisions.

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Group of extraordinary expenses

Group of extraordinary expenses

Overtime expenses

If your company often has to work overtime hours, this is also a type of cost that you need to consider. Types of expenses mentioned are the electricity used to pay overtime, elevators, water, wages for building staff, etc.

Depending on the office you rent, the overtime fee will be charged according to:

– Calculated by office

– Calculated by the device used

– Calculated according to the area of the office that you rent

Group of cost is affected by other contractual provisions

Group of cost is affected by other contractual provisions

  1. Office rent is affected by the USD exchange rate adjustment

For professional leasing offices, the rental cost will be adjusted and comply with exchange rate fluctuations. In accordance with the provisions of the state as well as the Central Bank.

For each rental unit, there are different periodic rent adjustment terms. You should pay attention to this item in the contract so as not to lead to later questions or disagreements.

  1. The cost of renting an office depends on the adjustment of the unit price

If you rent a long-term office, usually for a period of 1 year or more, the contract will have additional terms office rent which will be adjusted every 6 months, 1 year or more depending on the variable situation of the market. This is also one thing that you need to consider before deciding to hire an office.

The above is a summary and classification of the types of office rental costs that you need to know before deciding to rent an office for your company. Officespot hopes you have mastered the basics to make informed decisions. If you still have any questions or are in need of office rental, do not hesitate to contact Officespot for a free consultation!