If you’re looking at renting an office, you should be aware of the differences between coworking, professional leases and 3/6/9 leases. Each of these options has its own advantages and disadvantages, and you should know the details before choosing the one that’s right for you. Below is an analysis of the main distinctions.
Professional Lease: Office Lease for Non-Commercial Activities
Self-employed individuals who are engaged in a hobby or pastime rather than a business activity generally prefer to sign a commercial lease agreement. For example, licensed liberal arts practitioners such as doctors, architects and lawyers fall into this category. Unrestricted liberal arts and sciences are also at risk.
The management consultant or advisor may sign a standard lease agreement. Because of its simplicity, this is useful in facilitating service contract negotiations between tenants and landlords. They are able to accurately project their monthly expenses for rent, utilities and any other recurring services.
This type of lease is popular because it gives tenants more freedom to put their own stamp on their office. Here, tenants take for granted that they will stay longer than a few weeks. With this rental system, they also retain a certain advantage. It is true that the tenant has the possibility to terminate the rental agreement at any time. Therefore, the tenant is guaranteed to use the space for six full years.
Typical office leases are for 3,6,9 years
A common misconception is that a 3/6/9 lease is the only option for renting an office. After that, you’ll need to take some time and effort to choose the ideal business location. There are a number of things that the company’s management needs to be prepared for before they start visiting.
Finding time in one’s busy schedule to look for an office to conduct business is a challenge. That’s why many business owners ask real estate agents to set up viewings. This sometimes takes the pressure off the surveyor. However, you should plan to take action yourself to find his subsequent offices, such as filling out all the necessary paperwork, conducting all the necessary visits, etc.
What you should know about commercial leases
Therefore, once the offices are located with a landlord, it is essential to pay attention to all the procedures, both on the scientific and administrative side. Signing a commercial lease depends on financial resources. A budget must be set aside for agency fees, a security deposit, an advance on rent and the furniture needed to comfortably set up the offices.
Without funds, it is difficult for a startup to consider obtaining office space. Finally, consider the length of the lease. The lease agreement calls for a nine-year commitment from the tenant. Every three years, the tenant has the option to vacate the premises. There are strict protocols that must be followed. In most cases, the tenant is required to give six months’ notice. Either a registered letter with acknowledgement of receipt or a bailiff’s notice must be used to serve the landlord with the notice. This is not the type of contract for which a quick exit is possible, and flexibility is not the key word.
Coworking offers a new and adaptable solution for renting an office
This is the most popular model presented by shared office spaces, where members come in for a few hours a day or a few days a week to do their work. This assistance is provided by a contracted provider. The rentals are reliable and short term. This solution primarily meets the requirements of business owners and employees, making it a viable option. By setting up a service contract, they can get a rental office quickly and hassle-free. This is because in addition to office space, amenities such as meeting rooms, a break area, wifi, cleaning service, a receptionist, and corporate domiciliation services are available.
Companies looking for a versatile, flexible and comfortable option still have nothing to lose by renting fully equipped offices like those in our Color Business Center