Renting office space in London can be a daunting process, irrespective of whether it’s your first time looking for a professional address or your 10th. The hunt will take you from one borough to the next as you compare neighbourhoods, accessibility, facilities, and most importantly, rent.
A crucial point to keep in mind as you look for your perfect office space in London is hidden costs. These are costs that might not be immediately visible when you assess workspaces, but will silently eat away at your budget once you sign the lease and move into your new professional address.
To help you ensure you make an informed decision when renting office space in London, here is a list of hidden costs you should consider:
- Business Rates
The first hidden cost to look out for when renting office space in London is business rates. This refers to the local tax you pay for a property leveraged for non-domestic or business purposes. Business rates can apply to a range of commercial buildings, including shops, warehouses, factories, pubs, bars, and most importantly, office spaces.
It’s important to note that business rates can vary by borough. In other words, the business rate in say Kensington will be different from the one you’ll have to pay if your office space is in Westminster. Further, business rates are typically calculated by multiplying the annual costs by a rate multiplier. And so, the cost of your office space in London will have a direct impact on your business rates. The higher the rent, the higher will be the business rate payable.
- Utility Costs
The next cost that can sneak up on you once you rent an office space in London is the cost of utilities. By this, we mean the cost of electricity, high-speed internet, phone lines, water, gas, etc. While these might not be core to your business activities, they are still critical aspects of running an efficient office space in London.
After all, if your employees have to work with slow internet or walk to the nearest store to get water, you’re forcing them to waste prime working time to meet basic needs. When comparing office spaces in London, enquire about the average costs of the above-mentioned utilities. And then take that into account when evaluating the financial viability of renting each office space.
- Cost of Office Furnishings
Your office space in London is not just four walls and a few desks in the centre of the room. No, it’s much more than that. It’s about collaboration, employee satisfaction and company morale. And the most basic way to set the tone is with the furnishing.
As you compare potential professional addresses, analyse the furnishings that come with the space. If furniture is not part of the deal, then it’s important to factor that additional cost as well. Think furniture like desks, chairs, and sofas, whiteboards, company branding and the like.
- Cost of Office Facilities
The next hidden cost to be aware of when exploring office spaces in London is the cost of the facilities you need. Facilities such as meeting rooms, breakout rooms, a kitchen area, and private offices are hallmarks of modern offices.
These spaces in an office help foster collaboration and drive productivity, making them non-negotiable. When exploring office spaces, inquire about the charges for booking meeting rooms and communal areas. Further, look into the technology infrastructure as well. If you have a hybrid work model or have clients overseas, the cost of using video conferencing equipment and collaboration tools must also be factored in.
- Lease Agreements
Your business needs can change drastically over a short period of time. Maybe you need to downsize, or perhaps you’re expanding and need a bigger office space. Whatever the change may be, it can be challenging to meet its if you’re tied up in a long lease.
Don’t get us wrong, long leases can be great for your business. But if your business expands, it makes little financial sense to be paying for a cramped office space in London. To avoid getting caught in a bind, first try to gauge your business growth over the period for which you’ll be signing the lease. Next, examine the flexibility of the lease agreement and the early termination clauses. Doing this will help you make an informed decision when choosing an office space in London.
Avoid Hidden Costs with Garden Office Bermondsey
The above-mentioned list of hidden costs to look out for when renting an office space in London will hold you in good stead as you hunt for your next professional address. But, if you want to save time, while ensuring transparent as well as cost-effective renting terms, then explore Garden Office Bermondsey.
At Garden Office Bermondsey, you get office spaces that are fully furnished, ready to move in, with complete flexibility to help you make them your own. And the best part, no sneaky charges!
So, lock down your next office space in London with Garden Office Bermondsey. Book a visit today!
