Don’t Be Fooled: 4 Hidden Flexible Office Space Costs
Working out of a flexible office such as a coworking space, serviced office, or surplus office has countless benefits. Whether it’s the price reduction, networking community or access to shared facilities, you are bound to enjoy and maximize the space usage. It is critical, however, to be aware of the four hidden office space costs that can occur with the flexible lease.
Hidden Office Space Cost 1: Meeting and Conference Rooms
Not all flexible spaces are equal when it comes to meeting and conference rooms. Your fee may include a number of credit hours per week, others per seat, while some are on a first-come-first-serve basis. Meeting rooms can be a huge part of your daily activities. Sometimes you may need to escape the hustle and bustle and find a quiet place to work in a group. Other times you may need to make calls to your remote workers and hold team meetings. So be aware of the type of meeting room package of the flexible office. Ask how much extra you could be charged. We don’t want you banging your head against the wall when you see your monthly bill!
Hidden Office Space Cost 2: Services & Amenities (wifi connection, printing, scanning)
Similar to meeting rooms, some flexible offices do not include certain office services within the membership fee. For example, not all spaces provide high-speed wifi or internet connection. If you’re enjoying high-speed wifi, not having it or paying extra for it may not work out for you or your business. Ask about other office services as well such as printing, scanning, and other administrative work; these are essentials to a business. If you’re going to need them daily, be sure to know about this to avoid extra expenses creeping up on you.
Hidden Office Space Cost 3: Automatic Renewal
Automatic lease renewal is a rather sneaky clause in the contract. With “automatic lease renewal,” rentees don’t have to bother with paperwork, especially if the rent is kept the same. Some space owners, however, include an automatic lease renewal at the market prevailing rate. This means that, without the stipulated notice, usually before a certain date, from the rentee, the lease will renew at the current market rate. Naturally, the prevailing market rate tends to be in the space owners’ favor. Some space owners may notify the rentee before the notice period is up, but you should not count on it!
Hidden Office Space Cost 4: Goods and Services Tax (GST)
Some flexible offices charge GST (Goods and Services Tax) while others don’t. Be sure to check with your coworking operator when dealing with price inquiries. While 7% GST (in Singapore) may not seem like much, it can still make a dent in your monthly rental expense.
Hidden costs are a reality in many types of businesses. This doesn’t change our view that flexible spaces are the offices of the future. We believe that flexible offices such as coworking and serviced offices have countless benefits for you and your business. They are lower in overall costs and can bring a new air of creativity, innovation, and networking to your business.
Interested in flexible office spaces in Singapore? Check out GorillaSpace. We have hundreds of spaces for you at your fingertips.