Radical times call for radical ideas and here’s one you might not have considered! If you have extra offices in your overall office plan, why not think about renting them out?
If you have an office that isn’t in use, then renting out your office space to someone who needs it, at a suitable cost, can be a great way of making extra income for you. Plus, your tenant gets a comfortable space to work in without the hassle and financial commitment of renting their own space.
Renting an office can be expensive for many small businesses and start-ups, especially if it is a “one-person” operation. A desk, a chair and a computer may be all that is required and the last thing an entrepreneur wants to do is fork out loads of money in rent.
So, why should you rent out those empty desks in the corner of your office? Well the first and (arguably) most important reason is the additional revenue!
The price you charge for renting out your office pace will depend on what facilities you are making available. Does your office include the use of the office printer, photocopier, internet, telephone line(s), etc.? What about furniture, computers, storage… and even artwork?
What happens if your rental office space is bare… do you go out and spend more capital… or take out a business loan to dress it up?
When thinking of office furnishings… including the cost of the furniture itself as well as supporting technology, installation, service and delivery… business owners are urged to consider value in terms of their use, not in ownership.
Did you know that you can lease everything you need to outfit the extra office… even artwork… and you can include the lease payment in the tenant’s rent?
Compared with other financing methods leasing is easier than securing bank loans and is just as competitive. Payments are based on fixed and not floating rates, and leases can be structured to support the needs and goals of a business, not the bank. Also, you can also offset the rental against your business profits and reduce your overall tax bill!
Another benefit is the potential for collaboration…“desk” renters may be able to provide you skills, expertise or even a product that could benefit you and your company. Even if you don’t end up working together, new faces tend to bring a bit of freshness and energy to the office.
Bottom Line: Renting out office space is a win-win for both the landlord and the tenant!