Renting Space in an Office

A comfortable working environment is an essential part of success in a growing business. Some people work out of their homes while others prefer to go to an office. If an office is the best option, then the next question is whether to rent or buy office space. Renting space in an office is a viable option for many reasons. One notable advantage to office rental space is more flexibility when it comes to choosing the location. Buying office space in a prime location may be out of reach for the budgets of some businesses. However, by renting space they may be able to afford it. Renting office space may also help alleviate some of the overhead costs of running an office. For anyone who owns a business and is considering renting or purchasing office space, there are factors to keep in mind to determine if it is the best fit for the business. The best three businesses that help individuals rent space in an office include officefinder.com, officespace.com, and officelist.com. Read on to find out what you need to know about renting space in an office.

Frequently Asked Questions ( 8 )   Add a Question

  1. How does the rental of office space impact taxes?
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    While there is not a tax credit for renting office space, one benefit of doing so is that there will be less tax paperwork to file. Those who own a building have many more forms to fill out for taxes versus those who rent space.

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  2. What are the financial benefits of renting space in an office?
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    Renting office space requires less overhead. Normally, renters do not pay utilities. And if the space is fully furnished, then there is also less equipment required to purchase for the office. Depending on the needs and budget of the company, renting office space may have many financial benefits.

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  3. Does office space come furnished?
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    Both empty offices and fully furnished office space can be found for rent. It depends on what the renter is looking for. There are offices called “out-of-the-box” ready that come fully furnished. They also include phone and internet. Some even provide an office manager allowing business owners to focus their full attention on growing the business.

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  4. Who is responsible for the utilities for the office space?
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    If the business owns the office space, then that business is normally responsible for any utilities that are associated with the office. However, in a rented office space, this is typically not the case. While the cost of utilities may be factored into the monthly rent that is charged, businesses that rent space in an office are generally not responsible for directly paying utility bills.

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  5. Is renting a better option than buying office space?
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    Owning office space allows a business to take tax deductions on it. It can also provide additional income if parts are rented out. However, there are upfront costs and if the business outgrows the space, they may need to sell before upgrading. Renting an office frees up working capital and allows businesses to focus more energy on running the business.

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  6. How long of a lease is required to rent space?
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    The length of the lease varies from situation to situation. The longer the length of the lease, the better monthly rate a business can negotiate. Month to month options may also be available in some cases.

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  7. If the business grows and more space is needed, can the size be upgraded while under contract?
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    Upgrading to a larger space while under contract is sometimes possible. It depends on the situation and if larger space is available. For any business that might grow rapidly, try to include a clause about upgrading in the contract.

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  8. Why should a small business owner rent space instead of working out of a home office?
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    This depends on the situation. While a home office is beneficial in many cases, it is not always the best option. A home office can be full of distractions, especially if there are other family members home during work hours. Plus, not all homes have adequate space to run the business. For businesses that require meeting with clients, having an actual office may be the best bet. An office also helps to establish boundaries between time to work and time to be at home.

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