For many start-ups and small businesses, traditional commerce office leases (that run for at least one year) have more drawbacks than advantages:
- They are expensive
- Breaking the lease involves multiple costs (e.g., termination penalties, clean-up costs, and even legal costs for not reaching the agreement with the landlord)
- Equipping and furnishing an office is expensive and time-consuming
Therefore, start-ups in the early stages (that need to mitigate risks) and small businesses running on a limited budget should rely on short-term office leases instead of conventional long-term office leases.
Nowadays, several office providers offer short-term rental agreements (with no lock-in contracts).
Typically, short-term office leases have a span of six months. However, companies can also rent virtual offices on a monthly basis.
Short-term renting is an excellent solution for entrepreneurs looking to grow their businesses quickly and maximise cost-efficiency.
5 Incredible Benefits Of Short-Term Office Leases For Start-ups & Small Businesses
1. Cost reduction
Short-term lease agreements are one of the most effective solutions to reduce costs and save money on expensive overhead. As short-term office spaces are already furnished and equipped, businesses do not need to spend time and money on photocopiers and printers, kitchen supplies, Internet connection, and more. In addition, short-term leases are much more affordable than long-term ones (in Australia, the monthly rent for a short-term office can be up to 20 times lower than the monthly rent for a long-term office).
2. First-class services
Most of the time, short-term offices enable businesses to access outstanding services of the highest quality (e.g., office facilities). Short-term office providers deliver excellent services because they are aware that customers can hunt around for better deals if they’re unhappy. On the other hand, finding a good long-term office landlord isn’t an easy task. Many landlords believe that their responsibilities end when the lease is signed (because they know that most tenants won’t get out of the lease early so that they won’t end up paying significant termination penalties).
3. Support for business expansion
Short-term office leases provide excellent support for business expansion. With short-term office space, companies can move out of the space quickly and without hassle. Furthermore, many short-term offices allow businesses to access pay-per-use services or include additional services in their packages when it’s time for them to expand or scale up. For example, high-quality virtual office packages are customisable (meaning that companies can access the services they need as they grow).
4. Stress-free setup
Typically, a long-term commercial lease involves complex and lengthy negotiations, not to mention the time and money a business must spend on finding the right office supplies and equipment. On the other hand, getting short-term office space is a quick and easy process as it takes just a few days to set up. Sometimes, the process can take even less than 24h.
5. A modern and more flexible way of doing business
Long-term office space is a good option for businesses that still hold strong to the traditional 9 to 5 work schedule. Nevertheless, remote and hybrid work arrangements are the new business trends in the digital era (and the post-pandemic world). For this reason, modern and flexible short-term offices provide excellent support for remote and hybrid working. For example, in-house teams and managers can perform most of their tasks remotely and use meeting rooms on-demand only for important business meetings and sessions.
Conclusion: Start-ups and small businesses (but also companies that want to test the market or get temporary extra space) should enjoy the benefits of short-term commercial leases.
Short-term office rentals are more convenient and affordable and include everything a business needs to run smoothly, all without the hassle of long-term commitments.
Images source: unsplash.com