No matter how much the world of offices changes, there are certain things that stay the same. We’ve seen businesses make the same mistakes over and over again, then have to pay again to fix them later on.

To help business owners out, we’ve highlighted a couple of really key hidden costs of leasing an office so that you can avoid them and save yourself both money and time in future.

Dilapidation fees

Dilapidation fees are the costs applicable to the tenant of the office space as they come to exit the premises. In most cases, you’ll have to return the space to how it was before you moved in and pay for any repairs.

Getting it back to that shell condition can costs tens of thousands of pounds, especially if you’ve been in there for a long time and really made it your own over the years.

Before signing any lease, it’s vital to make sure that you understand what your responsibilities are when it comes to dilapidations, and how you can limit your liabilities.

The last thing you want is a surprise at the end of the lease that you haven’t budgeted for. In our experience, ensuring you have protection through a reinstatement clause has saved businesses in excess of £75,000 – it really is big money!

It’s also worth viewing the cost of making any dilapidations good in the context of what a new office could cost you. For example, it’s another big expense on top of a fit-out, moving costs, branding and more that you might have to pay for in the new space.

When viewed like that, additional dilapidation fees can have a double impact on your office moving, making it even more important to be aware of this potential hidden cost at the beginning and do what you can to mitigate it.

Exercising your break clause

One of the most important things you have to know inside out as a business owner is the break clause in your current office space contract. Make sure you treble check how much notice you have to give and any other conditions of breaking the lease that are applicable.

If you don’t, you could miss your opportunity to move and be stuck in an office that is too small, too expensive or unfit for purpose in some other way – stunting the growth of your business.

Your break clause isn’t automatically assumed and you’ll typically have to give between three-and-nine months’ notice before the event or risk being tied in. If you’re unsure, seek legal advice!

In the space of two weeks recently, we’ve had three businesses come to us having missed their break clause. All are tied in for another two or three years longer than they wanted to be having already decided to move. That is a big inconvenience and one that you can avoid.

With the right advice and good relationships, it is sometimes possible to negotiate your way out of an existing lease by keeping a date/reminder of your break clause and also seeking legal advice on the activation of the clause to ensure you have satisfied all of your obligations in the lease.

Want to know more about how to plan your next office move? Get in touch with our team today for a free discovery call.

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