Office Rental Price: Pricing and Negotiating Method
Currently, businesses are growing and expanding, leading to increasing demand for office space. However, not all businesses choose for themselves an office that is satisfactory and can be used for a long time. The office is not only a place for employees to work but also the “face” of an organization, business, or company. Today, choosing a suitable office is not an overnight thing. Here are the considerations and negotiation tips that can bring out the best choice for your company when buying an office or office rental price.
6 factors to consider when pricing office rental price
Please choose an office near the center or right in the center to be able to move easily, and convenient for traffic. It is important that the room should be in a clean location, with enough light and trees around, to ensure the roads are clear, and the air circulation is good to bring luck at work.
You should find out in advance to avoid renting an office on low-lying roads because it is easy to flood, this is also something that many people avoid.
It is estimated that the office area for one employee is 4m2/person. Therefore, when renting an office, calculate that the office is not too small or too large compared to the necessary level.
Companies with future expansion plans, need to negotiate with the investor in advance to minimize costs incurred and avoid running out of space for expansion because the rest is leased.
In addition, you should discuss with the investor about the common use area such as corridors, aisles, toilets, etc., and related costs to avoid conflicts later.
For any rental, buying house, or office you should pay attention to the investor: investment business biography, and legal papers. If the developer is not a reputable partner or has a history of causing trouble for the tenant, you should not rent an office there.
Service and design of rented office
Lobby building design: The lobby is cool and convenient, and customers will have a comfortable mood when entering your company, the lobby also has a psychological influence from the outside. So, when renting an office, you should raise the above issue with the investor to ensure the interests of the company and customers.
Parking: When renting, you should pay attention to choosing buildings with convenient parking spaces for employees and customers.
Air conditioning and elevators: the air conditioning system should be good to be able to ensure a comfortable and cool space for employees to work, the elevator system should have a separate elevator for the office area to avoid such situations. problems arise when sharing with residential areas.
Window system: the office should not be too airtight, as it will cause suffocation and not alertness. At the same time, the door system must also ensure that rainwater does not overflow or strong winds blow in.
Toilets: Toilets need to be hygienic anyway. You should consider the flushing system as well as other materials in the toilet to ensure hygiene standards. Because this will have a direct impact on the health and psychology of employees and customers when using.
Office rental price
Office rental price depends on location, area, and equipment in the house. The company’s rent will usually be subject to a 10% rent. When renting an office, businesses need to clarify the price from the beginning, whether the price includes tax or not. And it should be clearly stated in the contract to avoid misunderstandings later. The following are the average office prices by grade in Ho Chi Minh City:
- Grade A Office: 37USD/m2/month
- Grade B Office: 20USD/m2/month
- Grade C office: 13USD/m2/month
Usually, the rent will be paid every 3 months. However, there are also cases off the shelf, the investor wants to collect a lot of money at once, so he will decide to pay once every 6 months. In this matter, you can negotiate with the investor to see what is reasonable for your company.
How to value the office rental price?
- Thoroughly study the office rents of office buildings, grasping the ups and downs of the real estate market.
- Location, equipment, facilities, security, environmental landscape, ratings, and evaluation of the building’s standards.
- Space, environment, changing trends around the building’s vicinity in the coming time, and the response of its correct values to the above changes.
- Psychology of your customers in terms of negotiation, needs, and wants.
Office rental price negotiation tips
Besides finding a rental property with good premises, convenient for traffic, infrastructure and beautiful design… you also have to know how to negotiate the office rental price so that you can save your budget in a way. maximum.
Make a first impression and be polite
Show up in an outfit that makes you look professional. That will make your partner sympathize and appreciate you more. They may be willing to refuse to negotiate with you if they see the look of clutter and lack of seriousness.
Always have a polite attitude with simple actions such as shaking hands when meeting, remembering the name of the lessor, not saying more than necessary, not telling, or bragging … will help you gain sympathy. This also makes the negotiation less stressful and easier.
You need to show credibility by showing them your financial ability. That you are willing to pay according to the agreement and follow the principles set by both parties. This makes negotiations easier and builds mutual trust. The lessor will understand that it is possible to cooperate with you for a long time, and it is not easy to get a good partner like you.
Understanding the office rental market
Understanding the market and getting a lot of information about the real estate business will be very beneficial for you. Not only can you find offices with good locations and conditions, but you can also know what prices are most reasonable.
This makes the negotiation quite easy when the partner does not want to lose customers. Moreover, being knowledgeable also helps you avoid the situation of having to rent an office higher than the market price.
Capture the tenant’s psychology
In any negotiation, it is very important to understand the psychology of the other party. Through the attitude, gestures, or words of the lessor, you can tell if they are satisfied, hesitant, or not agreeing with the price you ask. From there, you can adjust the office rent in a way that suits the interests of both parties. Alternatively, you can offer to renew your lease at a lower price than it originally was when the office lease is about to expire.
During a negotiation, being quiet at the right time and listening to the landlord’s opinion will help you capture a lot of information and understand what they want. Many words and trying to convince is not always good. Speakers need listeners.
That way, you will show respect to your partner, make them feel good, and easily open your heart to listen to your subsequent requests.
Absolutely do not argue or say uncultured words when negotiating and negotiating.
Consider the requests made by the lessor
You should consider the offers of the lessor when handing over the office. Especially the office rental price includes electricity, water, tax, and insurance.
Hold your ground in negotiations
You need to understand your position and grasp the advantages and disadvantages of the lessor to make a reasonable request.
You should be flexible in your terms and conditions, but still, keep the office rental price from deviating too much from what you intended. To do so, you must know a lot about the partner and prepare carefully before the negotiation.
Presuppositions of situations
Try to pose situations and deal with them. You should assume the prices or requirements that the tenants of the office offer and how to convince them. This will help you prepare mentally and not be surprised and confused during the negotiation.
You can read the article about office lease contracts here: Office Work Opening Hours in Vietnam: A Guide for You
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Q: What are the legal requirements for lease contracts in Vietnam?
Vietnam has specific legal requirements for lease contracts, such as registration with the local authority and the inclusion of certain clauses, including those related to rent adjustment, termination, and dispute resolution.
Q: What are the different types of lease contracts available in Vietnam?
There are several types of lease contracts available in Vietnam, including commercial office leasing, co-working space lease contracts, and business center lease contracts.
Q: What is an office lease contract?
An office lease contract is a legally binding agreement between a landlord and a tenant, which sets out the terms and conditions for renting office space.