Renting primer, know the facts before renting an office!
Knowledge base and FAQ's for serviced and unserviced office rental.
Serviced Office: An office space, usually occupied under a short term license agreement rather than a lease, whose license fee also includes a list of some related services; usual items include rates, insurance, electricity, gas, heating, furniture, phone system, broadband, cleaning, service charge, maintenance, security, water rates, waste charges, services admin, etc.
Unserviced Office: An office space occupied under a lease agreement.
Rates: City rates are paid to the local authority. Renters are usually responsible for rates which come to about €2-€4 per square foot of rented space, per year!
Insurance: Apart from a companies own business insurance, contents etc, a portion of the buildings insurance is usually refunded to the landlord so that an occupier has an interest in the upkeep of the building. An approximate figure is €1-€2 per square foot, per year; sometimes included in the service charge (see below).
Electricity & Gas: Dependent on usage of course but €2-€4 per square foot, per year is realistic.
Furniture & Equipment: Entirely dependent on the choice of furniture, PCs, scanners, photocopiers etc. A one off set-up cost of €5-€8 per square foot ,per year is realistic for furniture alone.
Phone System: Installation, line rental, handsets; dependent on the type of phone system used and number of users. The first 12 months will cost approximately €500 per telephone / fax line and €300 per handset assuming a fully programmable system.
Broadband: Installation, line rental, equipment; dependent on the type of connection required. The first 12 months will cost approximately €500 per connection assuming a standard business connection.
Cleaning & Service Charge: Office cleaning and for the upkeep of the common areas, stairs, toilets etc. Can cost anything from €2-€12 per square foot depending on the premises. An average of €3-€5 per square foot, per year is common.
Maintenance & Repairs: Not to be overlooked, this can vary a lot and whether a company is responsible for the interior of its office only or also for the exterior depends on the lease / license agreement. When taking a whole building usually a lease is fully repairing. Otherwise upkeep of the building and common areas are paid by the service charge. For interior maintenance only €1-€2 per square foot, per year is realistic.
Security: Evening inspections, maintenance of lock systems; sometimes included in service charge (see above).
The Extras that all add up: Water rates, bin charges, moving in / moving out, building snags, deposits on utility connections, flexibility of the lease term, knowledge of services. €1-€2 per square foot, per year is realistic.
Administration: The time and associated cost administering all service accounts, connection costs, service costs, accounting, human resources. €2-€3 per square foot, per year is realistic.
Access Hours: Unless a company holds an entire building there might be restrictions on access hours. All serviced offices managed by WMS are accessible 24 hours, 7 days per week.
Term: The critical decision! When a commercial lease runs over 5 years a tenant acquires automatic rights of renewal so renting an office in Ireland usually means either a fixed term from 1 up to 4 years 9 months or a term over 25 years and not much in between; making it an inflexible proposition. A serviced office license agreement provides a service and explicitly prohibits a tenancy, creating flexibility of term.
Deposit: Most long term leases require quarterly rental payments and a quarters' deposit up front. Serviced offices typically require far less because there is less risk and more flexibility.
Location: Enjoying the place where you work, priceless
The serviced office solution bypasses all the above.
One Monthly Fee Covers All
Enquiries: +353 (0)1 677 9699