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Rent Payment Fees: Types of Fees

Rent Payment Fees: Types of Fees

When looking to rent an office, office price is always a carefully considered deciding factor when renting an office. However, in the total cost of operating an office space, there is not only office rent per m2/month. Let’s find out the types of office rent payment fees to know how much you have to pay for a serviced office.

Fixed costs – rent payment fees

Fixed costs - rent payment fees

Office rent

Office rent, also known as office rent, is calculated by m2, paid quarterly or annually depending on the contract negotiation of the two parties.

Service fee

It 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 rent payment fees do not include Electricity in the rented area, or parking fees for cars, and motorbikes.

VAT

VAT (value-added tax) is an indirect tax and is charged on the added value of goods and services arising from the process of production, circulation, and consumption and is paid into the State budget at the rate of consumption of goods and services.

Variable costs, according to actual use – rent payment fees

Variable costs, according to actual use - rent payment fees

Electricity bill for air conditioner

The electricity bill is included in the service fee for Grade A, 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 according to the meter, the average cost is 1-1.5 USD/m2/month depending on the time of use, type of air conditioner, and old and new of the air conditioner.

Electricity consumption in the office

Of course, businesses have to 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.

Extraordinary expenses

Extraordinary expenses

Overtime fee

This is the cost that the tenant pays for the costs incurred by the building owner such as elevator electricity, public area electricity, WC water, overtime salary of the operator, etc. and the largest amount is electricity for the central air conditioning system. When working overtime, if central air conditioning is not used, there are collection buildings, and there are no charge buildings.

There are 3 ways to calculate overtime fees:

Calculate by office: For example 300,000 VND/office/hour
Calculation by rental area: Example 0.02 USD/m2/hour * Rented area
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.

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 3-7 USD/m2/month; Grade C buildings charge around 1 USD/2m/month, some buildings only charge actual electricity consumption according to the meter.

Cost of site return

All office lease contracts contain 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 costs of demolition, cleaning of all partitions, and interior decoration items built and installed.

Provisions in the Contract that affect the office rent payment fees

Provisions in the Contract that affect the office rent payment 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 office buildings in Grades A, B, and C in Hanoi are quoted in USD. Complying 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 by year with high years and low years, but an average of 4% per year.

Adjustment of rental unit price

With a 3-year office lease, usually, the building owner will have a stipulation that the office rent 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 for the reduced market price to claim a discount.

You can read the previous article here: Rental Contract: Note when Signing

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huyho

Professional Content Writter about the office space for lease, coworking, serviced office, retailed space.

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