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IS YOUR OFFICE RENT WORTH IT?

Ravaged Earthbound Nerveless Tenant or R-E-N-T is something that haunts us day in and day out. It sometimes appears that a hundred rupee note, disguised as a monster approaches towards me and I sit cuddled in one corner with unabated breath. Then I scout for a magic wand and throw it towards the money-masked monster and see him crumble to heap. Well we all can

Kill this “rent” monster

provided we get our broom sticks out. We just have to make use of our newly installed brains which we have cherry picked for sure.

One of the biggest monsters is the office rent.

How many of us run our rented offices without any hassle?

 How many of us sleep peacefully in a bed of roses without worrying about the office rent which the cruel landlord has doubled or tripled because of some age old enmity? Why is the love lost between a tenant and a landlord? Well if you can tick the above boxes then surely your coast is clear and so is the weather. Just sail your boat! But for the ones who have to reluctantly turn away from these questions, I must say you have to sail close to the wind. But don’t worry, here is a palatable solution to your problem!

  1. APPEARANCES ARE DECEPTIVE:

Right, so after hearing this idiom you would end up smashing me and say elders always preach: do as I say, don’t do as I do. And so thus this idiom. We normally don’t apply it as a paste in our daily toothbrush lives. But here in an office scenario, we do need this desperately. It’s very essential that

“The location of your office should not give a mutton-dressed-as-lamb effect”

 It might be possible that you have been shedding more money for a location which is as ugly as sin. Before clinching a deal, check out the prices of land in that particular location and also talk to the businessmen or company owners in that location in order to know so that you do not end up running a fool’s errand.

2. PLAYING HIDE AND SEEK:

After having known that the location is liable to demand those exorbitantly high rents, you need to

“Assure that you have got a square deal and the amenities inside do not play hide and seek”

Ensure you have all the basic amenities that other tenants could play upon with in this rent. It could range from office chairs to free wifi or the canteen space or lounges. Don’t make a botch of this task and try to research and find out what one could lay his hands on under the beaming high pressure of this rent.

3. FOOT AT A DISADVANTAGE

Do not fall prey to the price paid per “rentable” square foot as the landlord in that case can wittingly include space that you may consider unusable. In this way you would end up using only about 75-80% of your rentable area and the rent will put you on the breadline soon. Certain factors like elevator banks placed in the centre of the building rather on the side or that fancy curve or a sharp edge in the building increase the rental area by leaps and bounds and burn your fingers immensely. So watch out for these clauses!

4. THE TRICKIEST CLAUSE:

An operating clause lets your landlord recover normal out of pocket costs of running a building. Insist on a precise and limited definition of the items to be included in the operating clause. Landlords sometimes use the operating expense clause as a profit centre.

“If you approve a catchall clause, which many landlords argue is necessary, it can become a blank check”

You may be billed for charges that have little to do with running a building. Ambiguity also increases your risk of litigation.

5. EXCLUSION REQUIRED:

“Don’t let the ballpark figure of the operating clauses to intervene in some additional expenses”

The electricity bill, advertising costs, structure repairs or replacements, penalties incurred on failure of payment of tax by the landlord are just ways for the landlord to feed the kitty. It’s just a way for them to get onto the gravy train! They are like those loan sharks who are waiting eagerly to make you feel the pinch and extract huge money from you.

6. DOUBLE DIPPING:

The landlord’s costs of running separate income-producing parts of the building should be rolled into operating expenses only after the income is deducted from your operating expenses. The landlord is already living high off the hog! Then why should we become an added advantage for him? These expenses go for sundry shops, coffee shops, observation decks, and so on. If the building has a garage, your landlord probably charges tenants and the public for parking spaces, but the cost of operating the parking garage may also be included among your operating expenses since the landlord may be wanting to live his life in clover.

“If your lease doesn’t specifically exclude this cost, your landlord has a good argument for billing you”

A fool and his money are easily parted. There are people who will easily dupe you. So, it’s your responsibility to use your money wisely. You might be eager to make a killing but don’t fall prey to money burners who can make you lose your shirt. Go the legitimate way!

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