What Start-up Companies Should Pay Attention to When Renting Office

Are you a start-up company and looking to rent an office in Ho Chi Minh City? This article will share with you the most useful experiences.

1. Renting an office located far from the city center:

Many startups often use an optimal option to rent an office located far from the central district. You can find offices for rent in Binh Thanh, Phu Nhuan, Tan Binh, District 5, District 11, … to save costs. Usually, buildings for rent in these districts have a small area, not as high-class utilities as in central districts, so the rent is lower, more suitable for small businesses that have just started up.

2. Financial considerations of the business:

This is a very important issue. To rent a suitable office, you must adjust the price so that it is reasonable, especially with the company’s current revenue. Or if your business receives investment from other sources, it seems “easier” to breathe. But if the company is independent and does not rely on support from any source, you must be very careful because it is usually signed for 6 months or more and must deposit at least 3 months of rent. Therefore, you must pay 4 months in advance of the office rent to officially have full use rights.

3. Small office space rental:

Renting an office with a small area is a common need of small, newly established, small-scale companies who need to find a small office to save on rental costs. although small, but the layout is suitable and tidy, which can still bring a professional feeling to the company using a reasonable design style. Normally, you can find small offices from 15m2, 18m2 to 30m2 depending on your ability and needs.

4. Learn about the form of Officetel:

Officetel real estate model is the perfect combination between Office and Hotel, this is a model that has been developed for a long time in developed countries but has only recently blossomed in Vietnam. Officetel model apartment used to both stay and combine with it. Officetel is a type of real estate full of closed utilities of a residential area, having high commercial features, completely unlike the traditional model, so it is very suitable for companies start-ups with foreign investment. Currently, there are many Officetel buildings in District 7 and District 1.
Normally, an Officetel apartment has an area of ​​​​from 25 to 40 m2, so this type of apartment is quite suitable for Startup companies, representative offices or company branches, research teams, or others. Foreign groups working in Vietnam… In addition, Officetel also brings many conveniences and advantages to tenants, both providing standard and luxurious offices with a full reception hall, elevator, security system with a professional management team.

5. Choose to rent a coworking office:

A shared office, also known as Coworking Space or rental of working seats, is a service that provides users with a workspace with full functions of a professional office. A shared office is an effective office solution for individuals and organizations to jointly own and share office costs. These offices are often fully equipped with equipment, helping businesses minimize the cost of renting offices, very suitable for start-ups. Currently, shared offices in the form of co-working spaces are emerging a lot in big cities. This form of coworking creates very good conditions for the star-up ecosystem to develop, supporting startups to expand their scale.

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/what-start-up-companies-should-pay-attention-to-when-renting-office

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What Is Lessor and The Role of It

If you want to rent an office, you need to know who the lessor is and what they can do.

WHAT IS LESSOR?

A lessor is a person entering into a lease to own the property and makes it available as a rental object for the tenant’s temporary possession.
For example, in rental property, the lessor is the one and the lessee is the other. The lessor can be the owner of the property or an authorized agent on behalf of the owner. Commercial banks, non-bank credit institutions, and rental companies often act like them.

TERMS

They can be legal entities and individuals. However, the term “leasing company” is sometimes used as a synonym for the term “lessor”.
The Seller and the lessor can be the same person.

ROLE OF LESSOR

Lessor’s interaction with other parties to the Lease is as follows:

1. Lessee chooses a seller whose property they need
2. Lessor transfers the property to the Lessee for temporary use with an agreed payment.
3. After the completion of the contract, depending on the terms of the contract, the property will be returned to them.

For the entire term of the Lease Contract, the property belongs to the ownership of the Lessor. In the event of failure to refund the rental payments according to the schedule specified in the contract, they have the right to waive the property to the Lessee.
In the event of the lessee’s bankruptcy, they have the priority to be paid.
In the case of implementing a high-priced project, they can engage in trading additional financial assets (through a bank, insurance company, investment fund, etc.).

FOR RENTAL AGENT

A formal rental service provider (or rental agent) is a typical form of a lessor.
Agents are an official supplier directly to an end consumer or through a rental company.
Agent cooperates with manufacturers according to the agreement.
For leasing companies, agents operate as:

• Officially certified supplier;
• Dealers provide consumers – customers;
• Insurance agent and liquidator

For consumers, official rental operators operate as:

• Officially certified supplier;
• Leasing brokerage (selecting the rental company that best suits the client’s requirements, based on the customer’s needs and capabilities);
• Adviser

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/what-is-lessor-and-the-role-of-it

Read Vietnam Economy Weekly News

Notes When Renting Office

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:

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/notes-when-renting-office

Read Vietnam Economy Weekly News