The Pros and Cons of a Month to Month Office Lease
Updated: Oct 8, 2018
As your business grows so does the need to find a suitable office for your operations. When choosing an office space, many questions and subjects will cross your mind. Is this the right location for my business? Will this be a big enough space for myself and the entire team? What is around the area that will attract talented employees? However, perhaps the most significant challenges that you might endure is the cost of leasing office space.
Leasing office space can become very costly very quickly. It’s important to know the size you need, amenities you are seeking, and the area you are looking at before going into a lease. Having an understanding of these factors will help you when it comes to your monthly budget and finances.
What you should think of is whether you do or don’t want a month to month lease. There can be arguments made for whether it is a good idea to have a month to month lease or not. Knowing this we have listed below crucial points and considerations you should make when deciding on this matter.
Pros for Month to Month Office Lease
Month by Month Equals Flexibility
A month to month lease might be the ideal situation for your depending on your business and the size of it. Often it’s hard to predict where the company will be in five years, or maybe even in one! Locking yourself into a multi-year lease will not do you any good if your business grows to the point that you need to expand, even if that rent is affordable.
Being able to rent office space on a month by month basis offers you the flexibility to move to a new location that might offer the restaurants, gyms, and recreational activities you and your employees seek in the area.
It Is Not Permanent
Another reason for a month to month lease is for what may seem like the obvious answer; you need the space only for a short time. An example of this type of situation is if you are moving to a new location. You have outgrown your current office space, but the new site you are planning on using is not a 100% functional just yet.
Renting an office space on a month to month basis allows you to temporarily have a location while your ideal office is being worked. After all, if you know the final touches on the new office will be done in six months to nine months then it makes no sense to rent a space for a year or more.
The Office You Want On Your Terms
There is a lot to like about the Hallandale Beach area. It’s close to the water and close to cities Miami and Ft. Lauderdale. Hallandale Beach is an attractive place to hold meetings and clients, but maybe your company size is still too small for enlarged office space.
Renting executive office suites can be a perfect situation for your business. Executive office suites, which are typically smaller than corporate sized office spaces but will still provide amenities such as desks, filing space and meeting tables are very useful. These suites are perfect for people looking to rent on a month to month basis because of their size, immediate readiness, and capability to be rented out for the duration of time you need.
You may just need use of a meeting room for an important business meeting or somewhere to receive and forward on your mail. A virtual office is a perfect example of this. By renting the space you can use the facilities only for when and the services that you need. Thus allowing you to spend your money on the business aspects that matter.
Cons for Month to Month Office Lease
Security is essential for any business, and that goes the same for your office space leases. A long-term contract on an office space ensures that you have a place to work out of for the future and it ensures the landlord they have a steady source of income down the road. Going on a month to month basis can mean the possibility of getting pushed out of the space you are using to a tenant that is willing to pay more or stay longer.
How Far Does Your Dollar Go?
Financially speaking a longer-term lease could be more cost effective as opposed to going on a month by month basis. Most long-term office space prices are on the square footage of the office. Opposed to a month-month lease which will typically have a rate that is both months and based on per person.
You might start off with a small group of people in your company, but if it continues to expand then so will your monthly rental costs. Long-term leases often protect against rate increases that a month to month lease might incur.
A month to month lease might be risky with some parts, but it does provide you the capability to be flexible with where you want to operate and how long you want to be there too. Moreover, that’s the critical thing month to month leases offer flexibility for you and your business. Ultimately the decision is yours on what kind of lease you need for your business. It takes careful consideration to determine where your company stands now and how quickly you believe it will grow.
Feel free to Contact Us for more information on office rental.