8 Types of Expenses Incurred When Renting an Office

When renting an office, except for the office rent to pay for the building, there are many other costs (expenses incurred). These costs are payable to operate the office. Besides, it also greatly affects the total cost in the end.

8 types of expenses incurred when renting an office

1. Service fee

It is the cost that the lessee pays to the management department of the building to maintain the services and utilities, including reception services, security, public area cleaning, domestic water utilities. WC area, corridor lighting, and air conditioning system, elevator system, insect control, tree care…

The normal service fee does not include electricity, parking, and motorbike.

Service fees range from $2 to $8, at Grade B offices the service fee will be from $4 or more, Grade A offices from $6 or more.

2. VAT

VAT is charged at 10% of the total office rental cost.

3. Electricity bill to use the air conditioner

In Grade A and Grade B office buildings, the service fee usually includes electricity for using air conditioners. Class C office buildings do not, or service charges under $4 do not include air conditioning fees.

Actual statistics at buildings do not include electricity and air conditioning, the average electricity bill is 1-1.5 USD/m2/month. The cost incurred may vary depending on the time of use, the type of machine, and the new age of the air conditioner.

4. Electricity consumption in the office

Each company will be provided with a separate electricity meter, the electricity bill will be calculated according to the amount of electricity the business has used in the month. Normally, this fee will be calculated according to the business electricity price of the state.

In case no separate electricity meter is used, the used electricity will be calculated in 2 ways:

Calculating according to the rented area, the formula is: (Total electricity consumption of the whole building/ Total usable area) * Rented area.

Calculated by equipment, the formula is (Total electricity consumed by the whole building/ Total equipment used) * Equipment used in the office.

5. Parking rental fee by month (expenses incurred)

This cost will be paid by the tenant to the car custodian. Guests can rent parking spaces inside the building or outside (adjacent parking lots).

The cost of motorbike parking in the central area will range from $8-15/vehicle/month, in remote areas from $5-8/car/month.

The cost of car parking in the central area is from 150$-250$/car/month, in remote areas from 60-150$/car/month.

In addition, in some buildings, there will be a free parking policy depending on the rental area, but most are not. Tenants need to negotiate when signing the contract.

6. Overtime (OT) fee

This is the amount tenants have to pay for the building if they work after office hours (8 am – 6 pm). Depending on the building, each fee can be different, or free.

This cost is used to pay for elevator electricity, public area electricity bill, WC water bill, overtime salary of operator… after office hours. Especially when working overtime, if the central air conditioner is not used, there is a collection building, there is a building that does not charge a fee, or the fee when using it will be different from the fee when not in use.

There are 3 ways to charge overtime:

By office: For example 200,000 VND/office/hour.

Calculation by rental area: Example 0.02 USD/m2/hour * Rented area.

Calculate by device: For example 0.02 USD/machine/hour.

In addition, businesses can negotiate overtime costs. Or businesses can install more local air conditioners, fans instead of central systems to reduce overtime costs.

7. Service fee during interior construction

Interior construction time lasts from 1 week to 1 month on average. During this time, the building can usually waive the office rent, but not the service and electricity bills.

However, the service fee during the interior construction period is a cost that only needs to be paid once during the rental period.

8. Ground return fee

This cost is used to pay for demolition and cleaning of all partitions, interior decoration items that have been built and installed to hand over the original ground (concrete floor or brick floor depending on the design of the customer) upon the termination of the contract. This cost will be borne by the tenant.

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

CONTACT US

We offer a free consultation to support you to find a suitable Office For lease In Ho Chi Minh:

Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo

Email: contact@lookoffice.vn

Website: https://lookoffice.vn/contact

Facebook: https://www.facebook.com/lookoffice.vn/

Office For Lease at LOOKOFFICE

source https://lookoffice.vn/8-types-of-expenses-incurred-when-renting-an-office

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Full-service Office and Benefits

The following will explain what a full-service office rental model is and the benefits when you rent it.

What is a full-service office?

A full-service office or a convenient office is a type of service that simultaneously leases both office space and all ancillary services so that businesses can use it directly. Along with that, your unit also owns a private office. Full-service office services include:

• Office equipment such as tables, chairs, air conditioners, toiletries, photocopiers, scanners…
• Reception service, reception.
• The utilities of office interior design, office management, or other necessary utility services.
• Allowed to use the address to register a business without having to pay the cost of renting a virtual office

The benefits that a full-service office brings

The full-service office brings a lot of benefits to businesses and companies when choosing it to replace the traditional office type. Specifically:

Professionalism, high specificity

When using a full-service office, the first thing is that you will immediately have a workspace without having to wait for time to install or transport equipment, this helps us to be very proactive about the time side.
In addition, the ancillary equipment available in the room such as TV, VCR, desk phone… also helps you and your staff easily catch up with the work in the fastest way, ensuring the work progress.

Start-up cost savings

The first stage in a business is one of the most capital intensive. When you rent an office, in addition to weighing the associated costs, you also have to buy the accompanying equipment. This will be a small expense, especially for startups.
Instead, if you rent a full-service office, you will be provided with all the necessary equipment and supplies as well as without having to worry about other miscellaneous fees. This will save you from having a headache to divide the costs accordingly but will use all your energy to develop your business.
In addition, another cost that you can save is the cost of personnel. You will not need to care about the reception team, repair equipment, provide services … but just invest directly in the core parts to grow your business.

Perfect accompanying services.

Using a full-service office service, you will be using very professional courier services. Moreover, in these offices, the internet connection speed is very fast along with the air conditioning system that always works if there are still people working. Any repair, maintenance of machines, or the internet has a professional team to intervene immediately, and of course, you will not need to pay any extra costs.

Which units should use a full-service office?

The full-service office is one of the great types of office services because it provides maximum support for businesses in terms of location, services, and equipment to work. Along with that, it also helps business owners save a lot of investment costs for an office.
However, this type of office service only creates the greatest utility for small and medium businesses or start-up groups that need space for transactions.
For larger businesses, the full-service office form will reveal some minus points, that is, there is not enough space for employees to work, there is no separate room for leaders… The common use equipment or meeting rooms will also cause some minor inconvenience. Therefore, for large enterprises, this form of office leasing is only used when the enterprise wishes to expand its operational area to other localities.
Therefore, depending on the purpose and size of the business, leaders will make choices about whether to rent a full-service office, a shared office, or use a traditional office for rent to gain the greatest benefits.

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

CONTACT US

We offer a free consultation to support you to find a suitable Office For lease In Ho Chi Minh:

Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo

Email: contact@lookoffice.vn

Website: https://lookoffice.vn/contact

Facebook: https://www.facebook.com/lookoffice.vn/

Office For Lease at LOOKOFFICE

source https://lookoffice.vn/full-service-office-and-benefits

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Practical Experience When Renting an Office

Here is a general practice office rental experience for you when renting an office.

Step 1: Experience when determining the demand for office rental

1.Determine the rental option, there are 4 options for you to choose based on the cost:

– Villa rental: Very expensive, cost > 35 million or more

– Renting an office building: Depending on the area, the rental price is from 150k / m2 or more, advantages: professional, good security

– Rent a private house: Street house > 20 million, masterpiece house from 10 to 15 million.

-Rent an apartment: Usually a nice apartment and can be used as an office for more than 7 million.

Depending on your needs, you can choose the right type of real estate:

You want to be professional => rent an office building.

You want cheap prices, comfortable hours => rent an apartment

You want to combine business => rent a private house

You have a lot of money and need a better space: rent a villa

2. Area you need?

The standard area for an average employee is 4m2/person. If your company has 10 people, the optimal area is 40 m2. However, you need to pay attention to the future expansion of the company to choose the appropriate rental area.

3. What area is the location in?

Depending on the field of operation of the company, choose an appropriate location, convenient for transactions. It is necessary to consider when renting an office in the streets where traffic jams often occur and car parking is prohibited.

4. How many years will you rent?

It is necessary to determine the appropriate rental period to avoid losing the deposit when returning the office before the due date

Step 2: How to search for an office

There are many ways to find an office to rent in the desired area, such as driving around the streets to find it or asking a loved one to find it for you. But those methods are often time-consuming and inefficient. According to my office rental experience, the best way is to go to Google and find a professional office rental service company. They will provide you with all the information you need from the name of the building, the available space, the office rent, the pros and cons of each building.

Step 3: Choosing and negotiating experience

Issues to consider when choosing and negotiating office lease contracts

• Rented area: Note that many landlords include the area of ​​the toilet and the hallway.
• Rent: Not yet negotiated, if you really like it, then calculate.
• Electricity: In Da Nang on average, people collect 3,300 VND / 1 number, the highest is 4,000 VND
• Water fee: Renting an office is usually 150,000 VND/month. Some buildings are free including water bills
• Air-conditioner: If the office prioritizes ceiling-mounted air conditioning (must see it old and new to evaluate)
• Toilet: The toilet should be separate to create more privacy and comfort.
• Working hours: All offices work from Monday to Saturday (if you need to work on Sunday, we can talk)
• Parking space: usually each place will be free for a few installations, the easiest to calculate is to divide the average parking area by the number of floors of the building.
• Deposit (preferably only 01-month deposit).
• Payment term (usually will be 03 months).
• Facing the house (avoid the west because it is very hot and costs a lot of electricity)
• Does the rental price include VAT or not?
• For how long to set up (Usually 7 to 10 days)

For a beautiful office like this, let’s close:

• The area is suitable for demand for at least 2-3 years.
• Rent the whole 1 floor (better than many companies renting 1 floor)
• Outside toilet
• Ceiling-mounted air conditioner (industrial air conditioner)
• With hydraulic glass door
• Good price is about 160k to 180k that is the price of grade C.
• The house does not stick to the west
• Daylight does not need to turn on electricity (for saving)
• Comfortable parking space or around there is a place to park and park a car.
• That street has an easy-to-find house number that is not numbered.

When viewing contracts, pay attention to:

• Deposit amount, deposit time.
• Price increase: in Da Nang usually 2 years increase by 10%
• Payment period: usually pay quarterly or once every 6 months
• Guaranteed to rent long-term or not? If the lessor cuts the contract, what will happen (usually pay 2 months’ rent and 2 months notice – this is too little compared to the amount I set up).

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

CONTACT US

We offer a free consultation to support you to find a suitable Office For lease In Ho Chi Minh:

Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo

Email: contact@lookoffice.vn

Website: https://lookoffice.vn/contact

Facebook: https://www.facebook.com/lookoffice.vn/

Office For Lease at LOOKOFFICE

source https://lookoffice.vn/practical-experience-when-renting-an-office

Read Vietnam Economy Weekly News

How to Rent an Office in District 8

As a district with a favorable location for the economic development of Ho Chi Minh City, District 8 is increasingly receiving the attention of investors, leading to the number of people coming to work and live.

How to Rent an Office in District 8

Search directly office in district 8

This way of finding an office takes time and effort, but in return, you can find good quality and affordable offices.

Thanks to friends and acquaintances

Compared to searching by yourself, asking friends and relatives to recommend or finding an office in District 8 will make you less tired, but the quality and price of the room are extremely reassuring.

Search online

Using the internet to search for offices is now quite common and also has positive advantages.

Survey the room before renting an office in District 8

This is a must-issue if you want to have a guaranteed office in both quality and attractive rental price. Some points you should keep in mind are:

• Check the office floor, ceiling, wall for signs of peeling, cracking?
• The room must have windows and the main door built and installed according to the specifications
• There is a separate water and electricity meter
• The electrical system and water pipes are not short-circuited or leaking.

Check out the price of office rentals in the surrounding areas

In order not to be pressured when renting an office in District 8, before renting, you must survey equivalent offices in neighboring areas. The more offices you find that are most similar to the one you intend to rent, the less likely your price will be to squeeze.

Renting room contract

The final issue to rent an office smoothly, ensure transparency, and your right is the office lease contract. Many people take advantage of the tenant’s impartiality and put unfavorable terms in the contract.

Therefore, before signing the office lease contract, you need to carefully read the content written in the contract, if you have any questions, you must discuss them with the office owner to correct them. In case you have no experience, ask your friends and brothers for support.

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

CONTACT US

We offer a free consultation to support you to find a suitable Office For lease In Ho Chi Minh:

Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo

Email: contact@lookoffice.vn

Website: https://lookoffice.vn/contact

Facebook: https://www.facebook.com/lookoffice.vn/

Office For Lease at LOOKOFFICE

source https://lookoffice.vn/how-to-rent-an-office-in-district-8

Read Vietnam Economy Weekly News

Advantages of Renting an Office in Tan Binh District

Tan Binh is one of the inner-city districts of Ho Chi Minh City. Located in the North of the city, bordering many central districts, the North has the largest Tan Son Nhat international airport in Vietnam, Tan Binh district has all the conditions to develop in all aspects both economically and politically. To rent a satisfactory office in this era, tenants need to understand some basic issues in the market for rental real estate in Tan Binh district below.

Basic issues when renting an office in Tan Binh district need to be understood

Geographical location

Many tenants make the mistake of only caring about the location of the district as the central district and not paying attention to many other small details. Tan Binh District is really a central district of the city, possessing all favorable conditions. Tan Son Nhat Airport is only a few kilometers from the city center, surrounded by central districts such as District 3, District 10, Phu Nhuan District, … very convenient for traveling by road or air. This place is the place to receive hundreds of thousands of businessmen from all over the world, tourists, or foreign investors. Really, Tan Binh district owns a prime location for any business or company.
However, investors often forget while renting an office in Tan Binh district that the advantage of trade only comes when the office is located on major roads and intersections that are convenient for moving, not buildings in alleys or traffic jams. Therefore, choosing a location that is both affordable and meets travel needs is not an easy task.

Infrastructure facilities for office in Tan Binh

This is one of the issues that many people are most concerned about when renting an office in Tan Binh district. Currently, the segment of apartments for rent in Tan Binh district is divided into three segments as follows:

Grade B office is a type of office located in modern buildings, high-rise buildings, high-class apartments on the main roads of the district. This type of office fully meets the requirements of the area, direction, and feng shui. However, each office has some limitations, for example, on the high floor, the interior has some problems, … so it can’t become a perfect Grade A office. Some famous places can be mentioned such as the buildings at Pico Plaza or B Etown,…
Grade C office space will fully meet the basic conditions for an office apartment that customers want to rent. However, the reason these offices are in Grade C is due to their geographical location on small streets and wide alleys of the district. Therefore, the rental price is very reasonable, suitable for small-scale or newly established businesses.
Cheap offices are located in buildings with locations on small streets. The office is not too large or there will be a few other inconveniences that are typical of cheap apartments. However, the price will depend on the tenant’s ability to deal mainly. With moderate conditions, some apartments in this segment fully meet those criteria.

Office rental prices in the market

Price is always an important factor in any negotiation. Of course, when customers need office rental in Tan Binh district, price is always a factor considered by tenants.

The office leasing market in Tan Binh district is still a hot topic of city real estate. Tenant customers range from the segment that requires an area of ​​more than 200m2 or small companies with a small number of employees with an area of ​​​​50m2, the market can always meet any demand.
The rental price of each apartment ranges from 8 USD/m2 (equivalent to 170,000 VND/m2) to 30 USD/m2 (to more than 600,000 VND/m2) depending on the apartment segment and geographical location of each apartment. Cheap apartments like Thanh Binh Building located on Pho Quang street or Spring Building on Thang Long Street,… can be even cheaper depending on the apartment. This completely meets the needs of small and medium-sized companies in terms of cost and space.

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

CONTACT US

We offer a free consultation to support you to find a suitable Office For lease In Ho Chi Minh:

Phone: (+84) 398 716 459 – Available via Whatsapp/ Viber/ Zalo

Email: contact@lookoffice.vn

Website: https://lookoffice.vn/contact

Facebook: https://www.facebook.com/lookoffice.vn/

Office For Lease at LOOKOFFICE

source https://lookoffice.vn/advantages-of-renting-an-office-in-tan-binh-district

Read Vietnam Economy Weekly News