Notes When Renting Office

by huyho
March 30, 2021
Leasing Office Guide, Know-how
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Page Contents

You need to be very alert to recognize the following problems when renting an office and deal with them effectively. It will be very convenient if you use them for the next time you rent an office.

1. Non-specific office lease criteria:

At the same time, the affordability of each business is limited, we need to determine which criteria must be met to meet the most important needs of the business. These are the criteria to be considered but can be ignored. So if there are specific criteria, it can obviously shorten half of the time to find a suitable office.

2. Desire to exceed affordability:

The desire to exceed affordability, or the mentality of “trying a little bit” to find an office for rent is quite common. For those with a rent budget of 12 USD / m2 / month always find the office 14-15 USD / m2 / month is more suitable for them. Because of the quality, class of service than buildings with 12 $ rent. Psychology of renting an office, everyone wants to find a place that is airy, viewable, new, beautiful, cheap … But really according to our many years of experience, every office for lease has its segment, its own price. And if it is cheap, you must accept it is not beautiful, a beautiful standard office must have a high price. The most important thing is which criteria I want to be. So when meeting this mentality, the result is that the process of reviewing and selecting an office is lengthy, and sometimes misses the company’s job.

3. Not planning for staff growth:

The cost of moving offices (furniture, furniture, cabinets, etc.) is quite expensive. Therefore, when businesses decide to rent an office, it is necessary to calculate the lease area in accordance with the plan to increase or decrease the number of employees of the business after 1 year. Otherwise, businesses will fall into the prospect of too many employees, not enough seats, and must plan to find a new place.
The damage caused when the personnel increased too quickly not enough seats:
+ Looking for a new office, it takes time, effort, and work efficiency of employees to decrease.
+ Employee psychology is not stable, affecting employee productivity.
+ Loss of 3-month deposit at the building being rented.
+ Can pay 3 more months if the contract stipulates.
+ Interior design must be removed and disposed of cheaply because when relocating, almost all new furniture is required.

4. Failure to give adequate attention to employees:

When renting a new office, the image, cost, and convenience of the partner are of course to consider. But many businesses do not have the proper attention to the needs of their employees. People who directly generate income for the business. In order to attract talent, create long-term commitment, and increase the productivity of employees in the office, the following issues need to be raised and solved.
+ Is the distance from home to work of most employees too far?
+ Is the working space comfortable and productive? Specifically: The seats are large enough, affected by noise, guests come in and out, have enough document cabinets, etc.
+ Are your rooms arranged conveniently for internal work exchange?
+ Where is the staff for lunch, how is the quality and price?

5. Spend less time reviewing buildings, offices:

There are some businesses that just “see” the office and make a decision. Usually, they spend 20-30 minutes looking at the office building, looking at the leased area, talking to the management board, taking some photos, not taking notes. Feeling like, then move to negotiating and signing the Contract. This way is fast, compact, time-saving, but potentially risky.
In order to fully assess the advantages and disadvantages of the building, of the leased area we should:
+ Develop a set of evaluation criteria based on usage requirements.
+ To spend enough time to review and evaluate.
+ Consult people who know about the building
+ Make a comparison table between buildings.

6. Sign the Offer Letter and transfer the deposit without considering and negotiating the contract:

The order of negotiation for office lease is given by the buildings, including 2 steps: (i) Signing a letter of invitation to rent (Offer Letter), transferring a deposit, equivalent to 01 month’s rent; (ii) Sign the contract and forward a deposit equivalent to 02 months of rent.
The offers usually do not cover all the issues related to the cost of the customer to pay. So ask the landlord to submit a draft Contract and negotiate any costs before transferring your deposit. If you have made a deposit but have not negotiated a contract, your negotiating position will be weakened.

7. Do not measure the actual area when renting an office:

The area given by office buildings is not always accurate, so re-measuring the area is a must. The difference in area increases the cost per month is not large, but for the whole term of the 2 – 3 year contract is a remarkable number. Currently, in some buildings, the actual rental area is still different, so to reduce this risk before signing a formal contract, we should measure the reality again.

8. Finding and selecting a design partner for interior design is too late:

If you are looking for and choosing a partner for interior design and construction early, you will have enough time to choose a business that ensures quality and cost. At the same time, quite a lot of interior design and construction companies are willing to provide free assistance to the layout of the site, the cost of investment. These are two important criteria for you to decide whether or not to rent a particular office.

For Foreign companies that want to start or expand businesses and look for an office in Vietnam: