Pros and Cons of Month to Month Office Rentals
People are generally reluctant to commit to things – a very general statement, sure, but if you have to be honest, having an open-ended arrangement, no matter the “thing”, sounds a lot more attractive than locking yourself into months or years.
While we don’t necessarily promote a month to month arrangement at the Bureaux, we do understand the need for it, and so offer month to month office rental plans.
Very often, a short-term office space rental arrangement kicks in after a lease period of a year or two years, allowing the tenant the opportunity to cancel their lease with a month’s notice – very often because they are on the point of needing to move to a bigger office or a different city. And, factors may prevent them from committing to a “move out” date. The month to month plan then gives them some breathing space to plan.
However, some lease agreements can be put together with a temporary office space arrangement in place from the onset, such as we have at our three Bureaux Locations office space in Cape Town.
But, as with all things in life, there are pros and cons – here they are:
- Flexible End Date
As mentioned, there may be a reason that you cannot commit to an end date to the lease and office rental period. This could be that you are waiting to purchase an office outright somewhere and the build isn’t finished. It could be that you are moving to another city and you are waiting on confirmation for your new office to be ready on the other side. A flexible end date takes away the stress and pressure of having to give a fixed end date.
- No Penalties
As with a set lease period, i.e. a year or 2 years, there would be a penalty applicable should the tenant break the lease by leaving earlier than the period. With a part time office rental arrangement, you wouldn’t have to worry about a penalty.
- Seasonal Reasons
With weather, it can be easier to move in the warmer seasons. No worry of rain or wind to upset moving furniture and its easier on the landlord too, as its easier to find a new tenant in summer or spring.
- Risk of Termination Notice being too short
The month to month lease works both ways and should the landlord want to give you a month’s notice, they can. This can put you in an unfortunate position and the stress of finding somewhere else in a hurry. What you can do is arrange that the termination notice must be at least 3 months in advance – the landlord will probably ask for the same curtesy in return.
- Odd Neighbours
If the landlord rents out all his office space on a month to month basis, you may find that you have new neighbours quite consistently. While that is exciting and interesting, it can be disconcerting to your clients that pop in and you also then never get to connecting properly if they are coming and going so often. We can say, that at the Bureaux, we take pride that our screening methods are very sound and we don’t just allow anyone in. Also, our month to month tenants generally stay quite long, so there is no risk of not making friends.
If you’re interested in looking at our month to month plans, please reach out today.