Directly leasing office spaces is often frustrating for both the landlords and lessees. Smaller companies with limited budgets often have a hard time managing large office spaces and keeping up with the costs. That’s why property experts will always recommend a start-up founder to find a small office for rent in Sydney. Instead of leasing large office spaces, subleasing small office spaces helps small businesses keep the costs down.
The final decision to rent a small office space should be contingent on these vital factors –
- The long-term costs of each lease arrangements.
- The flexibility in lease terms and conditions. For example, if the start-up wants to rent the small office space for only a couple of months, will the property owner or manager allow it? If not, small business owners should look for property management companies that allow short term lease agreements.
- The quality of the office space and the neighbourhood in which the building is located needs to suit business needs.
What Attracts Smaller Businesses to Small Office Spaces
The affordability of securing a small office for rent in Sydney is the main factor that attracts smaller businesses to such propositions. Usually, small-scale start-ups only require a few square meters of office space to function properly, especially in their early stages. The subleasing market is full of such affordable options. Selecting such low-cost office space options helps smaller businesses reroute their annual budgets into more productive avenues.
Some other reasons why small-scale start-ups are attracted to the idea of renting small office spaces include –
- The Chance to Share Important Facilities – Many providers of subleased spaces and small offices on rent provide clients access to important facilities such as – conference rooms, photocopying machines, reception areas, storage spaces, etc. These facilities can be shared with other businesses in the building. The costs of such basic amenities are severely reduced. Some property management companies even guarantee these amenities for free!
- Fixed Costs – The number one reason why start-ups fail is exceeding costs. Many start-up founders foolishly overspend their companies’ annual budgets on large and unnecessary physical office spaces. Soon enough, costs like electricity bills, maintenance fees, etc., start piling up, and they take a toll on the start-ups’ cash flows.
The only way to make budgeting for rent payments less financially stressful is eliminating the risk of unexpected additional fees. By renting a small office space under the supervision of a property management company, start-up founders can expect fixed annual costs. With these fixed costs, their ability to plan for the future also improves.
Selecting a Provider
Although partnering with sub-lessors or property management firms to acquire small office spaces on rent is a relatively risk-free process, there are some potential dangers that start-up founders need to address before signing any contracts –
- Make sure the sub-lessor has a good track record (no suspicious defaults on payments or unnecessary breaches of their leases) with other start-ups.
- The office space provider should oversee maintenance and repair requirements so that unnecessary delays don’t impact their clients’ businesses adversely.
Renting small office spaces can be extremely beneficial for small-scale start-ups, especially if the company managers can avoid these potential risks!