12 Types of Office Rental Fees You Need to Know
When looking to rent an office, office price is always a carefully considered deciding factor when renting an office. However, in the total office rental fees of operating an office space, there is not only office rent per m2/month.
Fixed office rental fees
Office rent, also known as office rent, is calculated by m2, paid quarterly or annually depending on the contract negotiation of the two parties.
Is the cost that the tenant pays for the services and utilities provided by the building, including Reception, security, sanitation, water in the WC area, lighting and air-conditioning in public areas, and elevator operation. , kill insects, take care of trees, etc.
Regular service fees do not include Electricity in the rented area, and parking fees for cars and motorbikes.
Variable costs, according to actual use
The electricity bill for the air conditioner
The electricity bill is included in the service fee for Grade A, and Grade B buildings. Normally not included in the service charge for Grade C buildings. Statistics according to reality, if you have to pay. Air conditioner electricity by meter, the average cost is 1-1.5 USD/m2/month depending on usage time, type of air conditioner, old and new of the air conditioner.
Electricity consumption in the office
Of course, businesses must pay for the amount of electricity consumed and used in the month
Parking fee for motorbikes
Some buildings have a free parking policy depending on the rental area, but many buildings do not have this policy. Negotiable when signing the contract.
You can know more about management fee here: Management Fees (Service Fees) Of Office For Lease
Extraordinary expenses office rental fees
This is the cost that the tenant pays for the expenses incurred by the building owner such as electricity for the elevator, electricity for public areas, WC water, overtime wages of the operator, etc., and the largest amount is electricity for the central air conditioning system. When working overtime, if not using central air conditioning, there are collection buildings, and there are no charge buildings.
There are 3 ways to calculate overtime fees:
By office: For example 300,000 VND/office/hour
Calculation by rental area: Example 0.02 USD/m2/hour * Rented area
Calculated by equipment: For example, 10 USD/unit/hour, usually a unit (FCU – Fan Coil Unit) cools an area of 40 – 70 m2 depending on the type of equipment.
For businesses that often work overtime, it is possible to negotiate a reasonable cost package. Or install more local air conditioners (if technical conditions allow) to reduce overtime costs.
You can know more about overtime fee here: Understanding Overtime Fee Details When Renting an Office
One-time payment during the rental period
Service fee during interior construction
During the construction of office furniture, the building owners will free the rent, but still charge the service fee: Grade A and B buildings usually collect at the rate of 3 – 5 USD/m2/month; Grade C buildings collect at around 1 USD/2m/month, some buildings only charge actual electricity consumption according to the meter.
Cost of site return
All office lease contracts have the following provisions: Upon termination of the office lease, the tenant bears the cost of returning the premises as received from the building owner minus reasonable wear and tear. Including the cost of demolition, cleaning of all partitions, and interior decoration items built and installed.
Provisions in the Contract that affect the office rental fees
Determine the area to be paid
Grade A, B, and C professional office buildings only charge rent for the actual area used by customers. There are 03 methods of measuring the area as follows: Measure the clearance, in the heart of the office; Measure according to the center of the wall and the wall surrounding the office; Measure along the outer edge of the wall and the perimeter of the office.
Normally the column in the rental area is still added to the payable area. For some buildings when the column area is too large, consider deducting part or all of the area
Effect of exchange rate adjustment on rent amount at each payment period
Most of the professional-grade A, B, and C office buildings in Hanoi are quoted in USD. In compliance with the regulations of the State Bank, the rental price and service fee are converted into VND to sign the Contract.
Some buildings have a provision to adjust rent and service fees at each payment period (03 months) according to the actual exchange rate at the time of payment. Some buildings do not have this provision, but the rental price in VND is fixed throughout the contract term.
In the past 10 years, the USD/VND exchange rate has increased year-on-year, high and low, but an average of 4% per year.
Adjustment of rental unit price
With a 3-year office lease contract, usually, the building owner will have a stipulation that the office rental price will be adjusted after 2 years, increasing or decreasing depending on market fluctuations.
In fact, this regulation is rarely implemented, and it is difficult for building owners to increase prices with customers because it affects all tenants in the building. And the more difficult it is for the customer to prove the ground of the reduced market price to claim a discount.
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