Renting an office space surely can be expensive. Many landlords today offer leases with variable interest rates so your monthly rent may increase yearly depending on the Consumer Price Index (CPI). Is it possible to cut back costs from your office space lease? Here are some tips:
If your current lease is based on the CPI, you may try to negotiate with your landlord for adjustments.
For instance, you can ask your landlord to skip the increase on your first year and implement the annual rate increase after you’ve completed 2 years of your lease term.
It is also important for your lease to have a Cap Rate or a maximum limit of increase. A cap will protect you against excessive increase on your lease payments.
Other Money-saving Options
Find more ways to save money by cutting back on various expenses. Consider if it’s possible for you to operate your business without leasing an office space. Here are some tips:
Telecommute. For example, instead of renting a bigger office space, you may consider telecommuting instead.
Telecommuting means you can employ freelance workers or home based workers through the internet.
Thus, even if you need to hire more employees, renting a bigger office space won’t be necessary.
Share an office space. Consider sharing one office space with another small business owner. This is a growing trend among businesses today because it enables a company to save as much as 50% to 75% on monthly lease costs.
Try hoteling. Hoteling is another technique done by many business owners. With this set-up, a home based business owner hires employees who work from various locations like hotels, temporary office spaces or even their own homes. This is an ideal arrangement for business owners who can’t afford to obtain long-term commercial lease spaces.
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About the Author:
Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.