Many entrepreneurs are now looking for their ideal office space in Singapore. Of course, the process of finding the space and making it your own is a long and challenging one filled with boring paperwork, but good preparation and extensive research can help you go through it smoothly and quickly. Many who are starting this process aren’t properly familiarized with drawing up leasing agreements and the paperwork and protocols that come with it. This guide should help you look at the process of finding your new office space with a little less fear and a bit more excitement.
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• Real estate agent or DIY?
So, your first decision will be whether or not you’re going to hire a real estate agent. Keep in mind that if you do decide to do everything yourself, the whole process will be a bit more difficult and time-consuming unless you already have everything perfectly planned and know exactly what you’re looking for. You can start by looking at the local newspapers, ads, and different internet websites such as OfficeFinderSingapore. Another option is to hire a real estate agent.
Source: WeWork
• How big is your budget?
Consider your budget before starting your search. You should make sure that you’re able to cover not only the rent of the office space, but also the other bills that come with it such as electricity, office cleaning, telecommunications, etc.
• Consider the location and the office size
Your optimal location will depend on numerous different factors such as public transport access, the price, or maybe you’re trying to get as close as you can to your target audience. Office size depends on the size of the staff, your budget, and the short-term and long-term business plans.
• Lease duration and rent
The majority of businesses are signing the lease agreement for 2 or 3 years, but longer leases are available such as 5 to 6 years. Typically, you can renew your agreement at the end of your lease term often for a new price that is usually the one that is prevalent on the market at that period.
Gross rent is paid monthly, and it includes the base rent, Goods and Service Tax (GST) of 7 percent, and service charges that range from 0.75 to 1.20 dollars. Service charges include the management services provided by the landlord, such as building maintenance, repairs, and security.
Source: The Motley Fool Singapore
• Deposit and other fees
There is a refundable security deposit which is typically 3 months of gross rent which you can pay in two installments. There is also a refundable renovation deposit that is required in case there are renovations or fitting-out works. This deposit will cover any possible damages made to space during the renovation.
On the other hand, there is stamp duty which is around 0.4 percent of the total rental amount for the entire duration of the lease.
