9 Types of Office Rental Costs Customers Need to Know
Let’s refer immediately to synthesize 9 types of office rental costs you need to know to plan the most reasonable office rental cost with your company’s needs and budget through the following article.
1. Office rental Costs
The first kind of expense that every business knows is office rentals. Office rental price is calculated by the number of square meters that your business rent. The office rental price list depends on the location, grade of the office building, services, utilities, … Office for rent in District 1 is favorable for all activities, and transactions of the business will be higher than office. The room is located in the fringe districts of Ho Chi Minh city center.
2. Building management fee
Building management fees are also fixed monthly office rental costs that businesses have to pay. The management fee is also calculated by the square meter that the business leases. Depending on the quality as well as the services and facilities attached to the building, the management fee will vary. This fee will be paid for services at the building such as:
- Reception in lobby.
- Security system, protection.
- Cleaning services (daily cleaning, periodic insecticides, …)
- Common drinking water.
- Common area electricity bill (for lighting equipment, camera, common area air conditioner, elevator).
- Building maintenance costs.
- Some other costs are according to the policy of each office building.
The office rentals and management fees usually do not include VAT. Therefore, when calculating the total monthly fixed rental price, businesses also need to add 10% VAT. These costs are usually paid monthly, quarterly, or annually depending on the property’s regulations or a mutual agreement.
4. Electricity and water charges Costs
In-office buildings for lease, the cost of water and electricity in the common area is usually included in the monthly service charge. Therefore, businesses only need to pay monthly electricity costs in the office.
According to statistics, in fact, companies often have to pay (if any) the average cost of air conditioners from 1 – 1.5 USD / m2 / month depending on the length of time used, the brand of air conditioner, the old and new of it. Therefore, when renting an office, customers also need to pay attention to the quality as well as the power consumption of the air conditioner. Should choose the office using good brand air conditioners, energy saving.
5. The cost of parking
Currently, some buildings have a policy of free parking for employees and customers. However, the majority of office buildings for lease in HCMC do not have this policy. The rental price as well as the number of parking spaces for each business depends on the class of offices for lease, the leased area as well as the number of employees.
6. Overtime expenses
In addition to the costs that need to be paid monthly, the overtime fee is also a fee that businesses need to consider. Currently, there are a number of free buildings that work overtime. But for the most part, the buildings have regulations on administrative time, overtime working time. This cost will be calculated when businesses work over the administrative time.
This is the office rental fee that the customer pays for arising costs such as: electricity for the elevator, electricity for the common area, WC water, overtime salary of the building operator, the system. Central air conditioning. If you do not use air conditioning, overtime costs are completely free in some buildings, and still charged in others.
How to calculate overtime fees
Currently, according to statistics, office buildings for lease use 03 methods of calculating overtime fees as follows:
- Calculated by company fixed. All tenants apply the same rate per hour.
- Calculated according to the rental area of the business.
- Calculated according to operating equipment when businesses work overtime.
For businesses with late working hours or often need overtime, it is advisable to negotiate with the building owner to get the most reasonable office rental cost.
7. Service fee during interior construction
Buildings often have a free rental of 7 – 30 days depending on the leased area for customers. During this period, the building usually charges only a management fee. You should talk to your office leasing agent for the best time.
8 . Site reimbursement costs
In-office lease contracts, there are provisions: Upon termination of the contract, the lessee bears the cost of returning the site as received from the building owner minus reasonable property depreciation.
9. Adjusting the office rental unit price
Usually, offices for lease of office buildings have the regulation that the office rent will be adjusted after 2 years or depending on the volatility of the market. Therefore, customers who need to rent an office should also discuss the rental adjustment.
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