Long term or short term rentals?
Getting the right length letYou have found your dream office, the monthly rates look suitable and the vendor seems genuine, think you are ready to sign on the dotted line? Hold on a minute, read on.
What time scale are you about to sign up for? Could you get cheaper rates if you sign for a longer term? Are you being tied in for a longer period than I would like?
These are all important questions to consider and while there is no right or wrong way to go about things, make sure you find out if you could get cheaper rates for agreeing to a longer let or lease for your office. If you are not expecting to be moving any time soon, maybe agreeing to fixed rates for 1-5 years may be an appropriate office let period.
Many office property owners are pleased to have business tenants tied in for long periods because it saves on the cost on finding a replacement business to move in and offers them security of a steady stream of revenue. It could be worth discussing if you think you’re not likely to be moving for 1+ years or more. It also puts you in a good position for bargaining if you are happy to stay for a long period.
One way of taking advantages of potentially better rates over long periods is to discuss your intentions with office brokers from the outset so they can look for long-period lets on your behalf, there is often a bargain to be had!