In recent years, startups have shifted their focus from renting traditional offices to choosing emerging shared workspace as their workspace. The thriving economy of New Zealand has provided entrepreneurs with a better development environment, leading to an increasing demand for office space rental. So how is office space rental charged in New Zealand? What pitfalls need to be avoided? Let’s learn about the following content together.
Overview of Office Space Rental Fees in New Zealand
When renting office space in New Zealand, we must be aware that the rent includes not only workstation fees, but also multiple aspects such as parking fees, internet fees, electricity fees, etc. Below, we will analyze them one by one:
- Workstation rental
Workstation fees are mandatory charges when renting office space in New Zealand. It is often directly related to factors such as the size of the office space, geographical location, supporting facilities, and lease term. In addition, the rental of workstations will also be affected by factors such as different floors and orientations.
And the lease term is also very flexible, such as how much a workstation costs per month, or it can be calculated directly on a daily basis. Of course, the longer the rental period of shared office space, the cheaper the rental price will be. Because in the case of a long lease term, it is possible to negotiate rent with a shared office rental company to obtain the most favorable price.
- Rent for conference rooms
For startups, a conference room is an essential office facility. Although some shared office rental companies may allocate meeting room usage time based on the workstations you rent, if you need to use them for a longer period of time, additional fees may be charged.
Of course, some shared office rental companies may also offer discounts on the use of meeting rooms, such as hourly billing, but the specific fee standards need to be determined according to the lease agreement.
- Air conditioning fee
The air conditioning cost of many shared offices is included in the workstation rental, but it cannot be ruled out that some shared office rental companies may classify it as a separate expense item. In New Zealand, due to the mild climate, some shared offices may not have air conditioning on all day, in which case air conditioning fees will be charged based on actual usage. For example, during periods when the air conditioning is not turned on, if you need to use it, you will need to pay an additional air conditioning fee.
Therefore, entrepreneurs must understand whether the air conditioning fee is included in the rent and the specific billing method when renting office space, in order to better budget for capital expenditures.
- Internet fees
Network expenses are also necessary expenses in office space leasing, as the internet is an indispensable presence in modern office environments. The network provided by shared office rental companies also requires a certain fee to be paid. Usually, it is directly included in the workstation rental, but if you need a faster network, it may be charged as a separate expense item. - Parking fee
If the shared office space is equipped with parking spaces and the lessee just needs them, they will need to pay a certain parking fee. There are usually multiple ways to collect parking fees, such as monthly payment, timely payment, etc. When renting a parking space, you can flexibly choose according to your own needs.
Common pitfalls and preventive measures for office space leasing in New Zealand
Although New Zealand office space has multiple advantages, there are also some hidden dangers in the leasing process. Therefore, entrepreneurs should also pay attention to the following points when renting office space:
- Contract terms: The contract is the basis for protecting one’s legitimate rights and interests. Therefore, when leasing shared office space and signing a lease contract, it is necessary to read the contract terms by oneself to ensure that one understands and agrees to all the content, especially the terms related to fees, lease term, breach of contract liability, etc., which require special attention.
- Understand the reputation of the rental company: When renting shared office space, it is important to choose a reputable rental company. Entrepreneurs can gain a detailed understanding of the reputation and service quality of rental companies through online searches, word-of-mouth recommendations, and other methods to ensure that they can rent a satisfactory office environment.
- Field investigation: If conditions permit, it is best to conduct a field investigation of the environment and facilities of the shared office space, especially the surrounding supporting facilities, before deciding to lease it, to ensure that the geographical location meets one’s needs and can provide more convenience for oneself in subsequent office work.
- Flexible choice of lease term: For startups, it is essential to choose a flexible lease term to better respond to market changes. For example, at the beginning, a shorter lease term can be chosen, and it can be adjusted at any time if needed in the future.
In short, the cost of renting office space in New Zealand varies depending on the choice. If you want to rent a shared office that satisfies you at the most favorable price, you must carefully understand the quotes given by multiple rental companies to ensure your own interests, while also being cautious and avoiding falling into the leasing trap.