Conventional Offices:
Costs Involved

• Setup Costs • Agent Fees • Legal Fees • Surveyors Fees • Deposit		As well as running costs, taking a conventional lease will include a significant initial outlay. Costs will include:
Setup Costs		Set-up costs for fitting out the office. These can range from £5.00 to £15.00psf, depending on the facilities and standards you demand. A fit-out contractor will co-ordinate all works necessary in your new office from arranging partitioning and cabling to purchasing furniture.
Agent fees		If you appoint an agent to help locate your new premises, expect to pay around 10% of one year's rental. The benefits can be substantial, however. You are given improved access to the market, the agent can negotiate your lease terms from a position of strength based on good knowledge of the market, and the agent can screen unsuitable properties and save you considerable time. You can decide whether you want to work with several agents and only pay the agent who introduces the property you acquire or you can appoint a sole agent to actively search for property on your behalf.
Legal fees		Legal fees, including conveyancing fees, stamp duty, local authority searches and bank transfer fees. The solicitor is necessary to assist in the preparation of all lease documentation - an increasingly complex job as the majority of leases now run to more than fifty pages. The legislation changes frequently therefore it is important to choose a solicitor experienced in this field.
Surveyor fees		Surveyors fees, which are typically 10% of one full year's rental. See role of the surveyor below.
Deposits		Deposits may be required from start-up companies with little or no trading history, as these are perceived as highly risky by landlords. As a rule of thumb, if annual profits are less than three times the sum of the rent and service charge, consistently over the last three years, your landlord will demand a deposit equal to between 3 and 18 months of the total rent. This should be held in an ESCROW account with interest to be paid to the tenant. The landlord may also accept a bank guarantee on a similar basis, or occasionally insurance, which would cost around 10% of the rent.

Renting an Office		The Advantages		The Disadvantages