Flexible terms are becoming a ‘must-have’ for businesses looking to rent office space, especially in London. We have found that companies renting serviced offices on flexible contracts benefit from greater freedom, lower financial risk and smaller deposits.
Here is our list of the 13 benefits of flexible terms when renting office space.
1. Ability to Rent Workspace Long or Short-Term
Flexible terms allow you to rent office space for 1 month to 3+ years. Many of our clients initially commit to 6 months and then often extend their contracts. This flexibility is ideal for any business, whether you’re looking for a workspace to support a short-term project or to establish a long-term headquarters.
2. Shorter Notice Periods
Traditional leases often require a minimum of six months’ notice. However, flexible terms usually offer a 30-day notice period after the initial agreement expires. This is great if your circumstances change, and it is one of the key advantages our clients mention when choosing a new office.
3. Consistent Monthly Expenditure
Flexible office spaces include rent, utilities, internet and cleaning in an all-inclusive fee. This consistency makes financial planning easier. Repairs and maintenance costs are also included in the monthly cost, reducing unexpected bills.
4. Simple Agreements
Traditional leases usually involve complex legal documents that require professional legal advice, which in turn, adds extra time and costs. Flexible contracts are typically shorter and easier to understand, allowing businesses to sign and move in within a few days.
5. Smaller Deposits
Typically, flexible contracts require a deposit equivalent of one to two months' rent. On the other hand, a traditional lease can require up to 6 months’ rent upfront, which can be more challenging, especially for startups.
6. Easy to Upsize or Downsize
We often find that a client’s biggest concern is committing to an office space that may not be suitable in the future. Flexible terms remove those concerns as they allow organisations to upsize or downsize their space as necessary.
We have supported companies that were initially looking for a 5-desk office and have now expanded into an 80-person office within the same building.
This flexibility is also perfect for businesses with seasonal fluctuations, or regular restructuring, as it allows them to quickly respond to operational changes without incurring penalties.
7. Adaptable Layouts
Beyond needing a bigger or smaller office, flexible contracts allow you to adjust the layout of your space as your requirements change. If you need a larger breakout area, a meeting room, or additional desks within your current office, you can adapt your space without having to relocate.
8. Freedom to Relocate
In some cases, you may feel that you do need to relocate. Flexible contracts allow you to do this easily and as necessary. We’ve worked with clients who have initially rented workspaces in Greater London and then moved into areas like Mayfair or The City as they have expanded.
9. Ability to Test New Markets
Sometimes organisations may not need to relocate completely and instead want to test a new market. Serviced offices in London offer a great way to trial new areas without a long-term commitment.
We regularly get clients enquiring about office space in Central London for 6 months and then opting for longer contracts once they are ready to commit to the area.
10. Lower Financial Risk
Long-term office leases can come with a greater financial risk, as businesses are often locked into agreements with high fixed costs, regardless of whether they’re using the space or not.
Flexible terms offer a lower risk as you’re only paying for the space on a shorter term. So as mentioned, if your needs change, you can move out with a shorter notice period and won’t be paying for unused or unsuitable space.
11. No Dilapidation Costs
Dilapidations refer to the costs of restoring an office space to its original condition. In a flexible office space, these costs are often covered by the provider. This prevents businesses from paying large (sometimes unexpected) costs at the end of the term.
12. Can Be Used During Transition Periods
Whether you’re between leases, undergoing a refurbishment or a merger, flexible office contracts can provide the ideal temporary space. The simple agreements and shorter notice periods offer a plug-and-play option to prevent downtime.
13. Supports Hybrid Teams
Hybrid working has skyrocketed in the past five years, and as companies reassess their office needs, flexible contracts are gaining popularity.
Flexible terms allow you to rent the space on a part-time basis. Hybrid teams we have worked with have found this to be perfect as it prevents them from overpaying for office space and gives them the option to use the space for more days if required.
Flexible terms offer the ultimate convenience. They allow companies to lower their financial risk, test new markets and scale up or down as required. If you’re looking for a serviced office in London or the UK, we can help you find a solution that fits your current and future requirements.
