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Guidelines for Requesting Office Rental Discount

Guidelines for Requesting Office Rental Discount

It can be said that the office rental market is less volatile than the real estate market, but that does not mean that office rents are always stable without fluctuations. So here’s how to apply for an office rental discount and apply for discount.

How to Negotiate Office Rental Discount

How to Negotiate Office Rental Discount

In recent years, the supply of office space for lease has basically met the demand for office space. Even, though the market is still receiving many new office buildings. In fact, considering the general situation, the rental price is somewhat tilted in favor of the tenant, but in order to negotiate the price more clearly from the beginning, you should note the things that seem The following are minor but quite important:

Determine the total cost of office rental

In the market, the building management often offers competitive rental rates, but that is only the unit rent/m2 of vacant office space. When deciding to rent an office, businesses usually have to pay the total cost including rent (the initial lease by management), management service fee, electricity consumption, motorbike parking fee – car, overtime cost (if regular overtime), and VAT (usually 10%).

Consider the method of measuring the area

In the current market, many office buildings for rent in Hanoi have agreed on the method of measuring the area used by customers, also known as the clear area. However, some office buildings still measure according to the wall center method or according to the construction area. Accordingly, the rental unit price will be slightly adjusted, for example, according to the customs, the rent is $ 24, the wall center method is only $ 22, and the construction area method is $ 20. No matter which method is measured, your business should also calculate the cost so that it is reasonable and lowest.

Exchange discount rate issues and market growth

Exchange discount rate issues and market growth

All rental payments are converted to USD in accordance with the State Bank’s regulations. On the one side of the building, the exchange rate is a growth base that follows the market. But on the other hand, on the tenant side, it is necessary to clarify the exchange rate from which bank to negotiate to get the average rate. And, customers should also note that there are buildings that adjust rents and there are courts that do not adjust when enforcing contracts.

Take advantage of all the offers of the building management

To attract the number of office tenants in Hanoi, some management boards have offered preferential policies in stages such as free 30-day rent for customers to complete the interior, and free rent for 3 months. first month…

You can read the previous article here: Real Estate With Poor Transactions Makes Office Rental Cost Rise

Don’t rush to move office without negotiating a discount

In fact, many businesses encounter cases where the quality of the office is not commensurate with the rental price. However, businesses should not rush to move offices without negotiating, consider the option of offering rent reductions to achieve the best benefits. Because after all, if moving offices, businesses also have to suffer many consequences, both it takes time to find a new office than that and costs to redo the interior “it’s both laborious, costly and time-consuming.”.

Usually, with office lease contracts signed by term, many customers are afraid and worried that the landlord will follow the contract and will never reduce the price. However, the fact is that you can completely learn about the investor, the rental area, and the general price to grasp the right time to be able to make the best proposal and negotiate the best rental price.

Experience in making proposals to reduce office rents

When making a proposal to reduce office rent, you should be tactful and based on the actual situation negotiate with the building owner. When making a proposal for a discount, you should also clearly present your views for the building manager to understand. For example, the difficult economic situation, comparing the price with the market price, some disadvantages arising in the working process, the quality of service…

Negotiating to apply for a discount on office rent, if favorable, will help businesses achieve better benefits and focus, focusing on business development, without having to spend time looking for a place or time and spending money. Office setup fee from scratch.

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