For solo pros, freelancers, satellite teams, and small to mid-sized businesses, joining a flexible office space can be a game-changer. It reduces the time and space commitment of a traditional lease while allowing members to benefit from economies of scale when it comes to amenities and infrastructure.
But while the premise is great, there can sometimes be a snag: flexible office leases.
Just as all flexible workspaces are different, not all flexible office leases are the same.
Luckily, most operators want to operate as transparently as possible so, if you know what to look for and what considerations to make when reviewing your contract to ensure you’re going to be happy and successful in your space.
Here are 12 things to keep in mind.
- Verbiage and Lingo: Make sure you understand exactly who and what are being referred to throughout the contract. This may seem silly, but contracts can be complicated so it’s important to ensure you know what’s being discussed. In our agreements at The Post, we start off with a simple appendix of the verbiage you’ll see in the document so there’s no confusion.
- Term Length: Check whether your term is a fixed term or if it’s month-to-month. In many instances, flexible office agreements will require an initial commitment period and then be followed by the option of going one month at a time. That being said, if you think you’ll be there for a while, go ahead and commit since rates can go up at any point in time. No one will lock your rate in going month-to-month.
- Cancellation Policy: One of the great things about flexible office spaces is that you don’t have to sign a multi-year agreement. Generally, you can cancel and be out within a relatively short time window, in the event that you ever want or need to. That said, make sure to check what that timeframe is, just so that you’re aware. At The Post, this can range from 30 to 90 days, depending on the volume of space occupied by our member.
- Flexibility: In addition to flexibility with lease duration, flexible office spaces also offer you the benefit of being able to scale your space up and down as your business grows and contracts. Check with your coworking space operator about their process in the event that you, for example, are hiring employees and need to move from a dedicated desk to a private office to accommodate them.
- House Rules: Not all flexible workspaces include this in their contracts but we incorporate it into ours at The Post. Why? Because we like to ensure everyone’s on the same page about their conduct as well as to give members a sense of exactly what to expect when they work here.
- Services, Inclusions, and Exclusions: Always make sure to check that your contract outlines the exact inclusions and exclusions that come with your tier of service. This could include, but isn’t limited to, meeting room access, attending events, which areas of the space you can work in and which are private, and more. Before signing, ensure that this aligns with your expectations.
- Start-Up, Deposits, and Monthly Fees: When you think of an agreement, the financial side is probably the first thing that comes to mind. As well it should be! Remember, though: most people think about monthly fees, but it’s not always intuitive to think about start-up fees and deposits. It’s certainly not uncommon to pay an administrative fee and to be expected to leave a deposit–often of one month’s rent–but just make sure to do your diligence so you don’t get caught off guard with a bigger first bill than you expected.
- Meeting and Conference Room Policies: Check your agreement for details about meeting and conference room usage–specifically, how much access you get within your tier of service as well as whether it’s free, paid, or credit-based. If it’s credit-based, confirm how many you get per month as well as what it costs to get more, should you need them.
- Renewal Escalations: In addition to the fees we just mentioned, it’s common for flexible office space agreements to include renewal escalations–fee increases that the coworking space operator has the option to implement at the time of renewal, if they need to. This doesn’t necessarily mean they will, but it’s a good thing to be aware of.
- Insurance: Much like renting a home or a traditional office space, tenant’s insurance is not generally something that’s included within your agreement. Your coworking space operator will have insurance for the building, but if you want to make sure your own personal property is insured, that’s something you should look into independently.
- Accessibility: Confirm when and how you’ll be able to access your flexible workspace based on your tier of service as well as the operator’s policies. For instance, some operators offer round-the-clock access for private office members, but only offer access between regular business hours for day pass users.
- Space Customizability: Look for any policies pertaining to the customization of your space. This could include adding branding or bringing in personal belongings. In general, most flexible office space operators are happy to have you make your space your own, but just confirm the parameters for this before signing on.
Pro tip: Always remember that it’s vital that you sign a formal agreement. It offers you protection and guarantees, including safeguards that the operator can’t unexpectedly raise their prices or change their obligations on you.
Flexible office spaces are an incredibly innovative solution for many kinds of professionals, teams, and businesses. And to ensure you have the best possible experience working in them, it’s wise to get ultra familiar with your flexible office agreement.
If you’re interested in learning how The Post supports the growth of small businesses, get in touch with us today. Our team is available to speak with you.