About to rent an office need advice.

BillyBoy13

I was going to post this in business and management but I figured the audiences here might be a bit more knowledgeable in this area.

So Im about to rent an office. Its actually an office with a private set of stairs that lead to my own attic/storage area which will be handy. Any-who Ive viewed the office twice and its perfect for me.

The thing is not only is this my first time ever renting a place, its also my first business so Im just a bit lost here.

What do I need to ask, or find out before I sign? Like I said this is my first time doing this so I have literally no idea what I need to ask or find out.

Any help at all would be great

wowy

I'm presuming you've not had a property agent or solicitor look over the Heads of Terms (I'm presuming a Lease hasn't been drafted yet, if you've only just been looking at it.) Do you have a break clause in the lease? Have you been advised if VAT will be payable on the rent?

Commercial rates - are there any arrears? Will the rates be included with the rent, or will the Council be billing you directly?

Is it an office within a shared building? If so, is there a service charge? What services are included, and how is are the charges apportioned? If it's a shared building, will you have exclusive use of a WC, or will it be shared? If shared (and there's no service charge), you need to check who cleans it, etc.

Few other things you'd want to satisfy yourself with, things such as security (alarm, quality of locks, etc), fire safety (emergency lighting, fire extinguishers on each floor, smoke alarms, etc), heating (storage heaters can cost a fortune to run, but mightn't be too much of a problem if it's a small space with good windows and insulation).

djimi

I cant be of much help really but some basic questions to ask are what is included in the rent, ie electricity, phones, internet etc, and find out what the (council?) rates for the area are.

enricoh

find out is the rates due on the office, n make sure if there is that no rates are owed by the last tenant coz believe it or not u are liable for any arrears!
good luck!

BillyBoy13

wowy wrote: »

I'm presuming you've not had a property agent or solicitor look over the Heads of Terms (I'm presuming a Lease hasn't been drafted yet, if you've only just been looking at it.) Do you have a break clause in the lease? Have you been advised if VAT will be payable on the rent?

Commercial rates - are there any arrears? Will the rates be included with the rent, or will the Council be billing you directly?

Is it an office within a shared building? If so, is there a service charge? What services are included, and how is are the charges apportioned? If it's a shared building, will you have exclusive use of a WC, or will it be shared? If shared (and there's no service charge), you need to check who cleans it, etc.

Few other things you'd want to satisfy yourself with, things such as security (alarm, quality of locks, etc), fire safety (emergency lighting, fire extinguishers on each floor, smoke alarms, etc), heating (storage heaters can cost a fortune to run, but mightn't be too much of a problem if it's a small space with good windows and insulation).

Great. Thats exactly the kind of reply I was looking for. I called the chap this morning and told him Id take the office so we arranged to meet on Wednesday where we'll sit down and work out the nitty gritty.

The rent is 170 a week and includes bins/internet and the office is pre furnished with chairs/desks etc. That leaves me to pay phone (if I even bother with a landline that is) electricity and gas (thats all I can think of just at the top of my head).

What are council rates? I never heard of that before? Sounds like it could be a bit of deal breaker, Im stretching to make it all work as it stands


Lastly, how should I handle this meeting. Get him to draw up a lease with whatever agreements we make on the day and then I take it to my solicitor and then if everyone's happy I sign the dotted line? Is that how these things generally work?

djimi

BillyBoy13 wrote: »

What are council rates? I never heard of that before? Sounds like it could be a bit of deal breaker, Im stretching to make it all work as it stands

This gives you some information.

http://www.dublincity.ie/Business/CommercialRates/pages/commercialrates.aspx

Its different in each county but if rates are applicable then expect to pay a few hundred a year at least.

wowy

Rates are a charge that the local authority levies on business occupiers within their administrative area. It's to fund local services (street cleaning, roadworks, water mains, etc etc, and various costs incurred by the council. As enricoh says, the levies are billed on the occupier, and any arrears can be levied on subsequent occupiers (but some councils don't enforce that, depends entirely on the person responsible for rates on that particular street). Total rates bill can vary between 20%-35% of the Estimated Rental Value of a premises (so in this case, say €35 per week).

How long are you looking to sign up for?

Re. the meeting; he (preferably his solicitor) will draft the lease based on what's agreed at the meeting; he'll issue the lease to your solicitor who'll check that it's in line with what you've agreed, and that there aren't any onerous clauses in there. Once all parties sign up, you'll need to pay stamp duty (1% of the annual average rent) - your solicitor will arrange for the lease to be stamped - and your solicitor will then need to register the lease with the Property Services Regulatory Authority.

To be honest, a licence could be more suitable in this instance. The substantive elements of the agreement will be the same, but it'll be quicker and easier to arrange, cheaper (as there'll be no stamp duty or registration fees), and if it all goes well, you can just renew the licence for another year in 12 months time. You'll have fewer rights; for example, a licence wouldn't give you "Exclusive Occupation" (in a lease, that ensures that the landlord can't just wander into your premises, unless in an emergency), but it would be more flexible, especially if you're only looking at, say, a 1-year deal at the moment.

OU812

Do you absolutely need an office right now?

You can get a virtual address for circa €25 PM & virtual landline for circa €10 PM (both plus VAT).

Go that route & you're €340 (+ VAT) better off a month until you've enough coming in to cover a physical place

BillyBoy13

wowy wrote: »

How long are you looking to sign up for?

Depends on him really. Ideally Id love an 8-9 month contract but I have a feeling he wont go any lower than a year.

wowy wrote: »

To be honest, a licence could be more suitable in this instance. The substantive elements of the agreement will be the same, but it'll be quicker and easier to arrange, cheaper (as there'll be no stamp duty or registration fees), and if it all goes well, you can just renew the licence for another year in 12 months time. You'll have fewer rights; for example, a licence wouldn't give you "Exclusive Occupation" (in a lease, that ensures that the landlord can't just wander into your premises, unless in an emergency), but it would be more flexible, especially if you're only looking at, say, a 1-year deal at the moment.

That sounds ideal to be honest. An in-law has promised us one of his offices rent free when they are finished around Aug/Sep next year. For now I just need something cheap/handy and with as little red tape as possible to keep us ticking over until then. As for the fewer rights that probably wouldnt be an issue.... I cant think of anything a landlord could say/do that would be an issue (well within reason, providing hes not deliberately trying to be an a$$)

OK thanks for all the advice everyone. I feel a lot more prepared now for Wednesday

Victor

You may need to pay a deposit of several months' rent. This is in standard leases, but may be negotiable.

Are you responsible for repairs? Buildings insurance? This is in some standard leases.

Painting?

While it probably doesn't apply to you, there are certain rights that one gains after having a lease of 3-5 years.

You need to strike a balance between looking like a good tenant and pleading poverty.