Office Rental Guide in Singapore for NewbiesDownload Now: FREE GST 2023 GuidebookDownload Now: FREE Employment Pass ChecklistDownload Now: Free Incorporation Checklist
Whether you are new to Singapore and do not know where to start when it comes to renting an office space or a seasoned pro looking to rent a new place, this Office Rental Guide in Singapore for Newbies will help you navigate the process.
We have put together this guide to help you start your office rental search in Singapore.
You will learn what to look for when looking for a place to rent and necessary paperwork required. You will also learn about alternatives to renting a traditional office space and how to budget your rent. With these tips and tricks, you will be able to find the perfect office space for your company in no time!
Things to Consider Before Renting an Office
Whether you are a newbie or an experienced businessperson, there are certain things to consider before renting an office in Singapore. These include location, capacity, and security. Your choice of location will impact the success of your business. You must also ensure that your office space has room for growth.
Office space is a commodity in Singapore, and a good space gets snapped up very quickly. While it may be tempting to negotiate the rent, it is important to stick to your budget. In general, property owners will only offer a 5%-10% discount on the asking price.
It is best to work with a rental agent. These agents have good relationships with the property owners. They will also be able to provide you with advice on pricing and contracts. They also have access to all the inventory in the market.
It is also important to have a solid team behind you. This team should include your human resources manager, finance manager, and office manager. Having a good team makes renting an office in Singapore much easier.
Before you choose an office, you should take a tour of the space to make sure it meets all your requirements. Ensure your space is equipped with the necessary utilities and security measures. It is also a promising idea to include a meeting room and a reception area.
If you are looking for flexible workspaces, you should consider coworking spaces. These workspaces allow you to rent dedicated desks. They are designed to increase productivity and reduce overhead. Some coworking spaces even offer fully furnished offices.
While office space is a commodity in Singapore, you can find great space for a reasonable price. The best part is that you can research your options online. The web has made it easier than ever to find the best space for your business.
What is the Budget for Office Rental Costs?
Depending on your location and budget, you can choose from an assortment of office spaces. A 5,000-square-foot office will cost you around $11,000 per month, while an 8,000-square-foot house will cost you a little more.
If you are spending your days in Singapore, consider owning a car. You will want to budget at least S$300 per month for transportation expenses. You can also consider car rental arrangements. The average cost of renting a car is between S$1,000 and S$1,800 per month, depending on where you live.
Aside from your newfound freedom, you will also enjoy the benefits of a well-oiled public transportation system. The cheapest way to commute in Singapore is by using the MRT. A one-way ticket costs around S$1.60, while the average daily commute costs S$3.50. As a bonus, you will also be able to visit Malaysia on weekends!
If you want to rent office space in Singapore, consider the location. You can choose from various districts, from the ultra-posh District One to the affluent district of Orchard Road. Consider an office in the central business district if you can afford it. This is an excellent choice because you will be in the heart of Singapore's business district. If you want to stay out of the city centre, condominiums in the outer reaches cost around S$3,300 to S$5,000 per month.
You will also want to consider a landed property, which includes semi-detached and detached houses. Depending on your location, a one-bedroom unit costs around S$7,000 to S$14,000 per month. To learn about budgeting for small businesses, read this.
Do You Need Physical Office Space ?
Choosing an office location can be a challenging task for a start-up. If your company plans to grow, you must ensure that your leasing space will accommodate your plans. This includes ensuring that it is conducive to your business and culture. A well-planned office space will also attract and retain talent.
You may need to consider future market changes and equipment requirements. The ideal office space should have a theme or a design that complements your company's culture. A good office space will create a positive first impression and give your company identity. It also helps you to build trust with your business partners and associates.
One of the most important reasons entrepreneurs seek office space is to accommodate their staff. If your business grows rapidly, you may need to find a larger space to accommodate your team. Consider if you need to relocate your team to a new location.
Generally, office space leases last for a period of two to three years. However, you may be able to negotiate a longer lease. The price of office space is calculated by the square foot per month. This can be pre-agreed upon by both parties.
Consult a commercial real estate advisor about the important aspects of your office lease. They can negotiate for you and represent your interests. They may also be able to help you save money on hidden costs.
When choosing an office space, you should also measure the square foot of the space before leasing. Office space may be more expensive than an apartment, so you should ensure you get the most out of your budget.
Alternatives to Renting a Traditional Office Space
Office space can be costly, especially if you are a start-up or new business. However, alternative ways to rent office space in Singapore might be cheaper.
One alternative to renting a traditional office space in Singapore is to look into coworking spaces. These provide a variety of office facilities for businesses, including a meeting room with the latest IT equipment and printing facilities. Moreover, these workspaces also offer additional services such as reception services and mail services.
Coworking spaces are on the rise in Singapore. They have been popping up for the last three years and are taking up around 5% of the total office space in Singapore.
Coworking spaces also allow businesses to rent more desks in the same space rather than leasing the entire space. This is a very flexible approach for companies that want to grow but may need more money to buy office space. You can find office spaces in places like Little India, Raffles Place, Suntec, Bugis, and Tanjong Pagar.
Another alternative to renting a traditional office space in Singapore is to rent a virtual office space. This option is usually cheaper than renting an office space and can give a company a registered office address in the Central Business District (CBD). However, this option is not without its disadvantages. For example, a virtual office can be overseas, and most employees may work from home. It may also be difficult to recruit talent when working from home.
Aside from these, renting a traditional office space in Singapore also comes with several costs, including fit-out costs, reinstatement costs, and stamp duty. Depending on your location, rental income can swing by a lot, so it is important to know the costs before signing a lease.
What Paperwork Should You Prepare?
Whether you are planning to rent a Singapore office for your business or to work from home, there are certain things you need to know. These include the different legal documents that you should prepare.
Did you know the latest update to the Singapore Companies Act regarding managing registers? If not, we suggest you brush up on it here.
- Letter of Intent
First, you need to prepare a letter of intent. The letter should explain to the property owner the basic terms of the lease. You should also detail the amount of rent and other essential information.
- Tenancy Agreement Document
Once the property owner agrees to your lease request, you will be given a tenancy agreement document. This document should include the signatures of both you and the property owner. The IRAS (Inland Revenue Authority of Singapore) must stamp the document. If the tenancy agreement is not stamped, the property owner can deduct costs from the security deposit.
- Public Liability Insurance Policy
You should also purchase a public liability insurance policy for the office. This is to cover property damage and personal injury. You also need to ensure the office furniture and fixtures are in good condition.
- Miscellaneous Fees
You can also hire an office cleaning service. You should also check the inventory list for items that need to be repaired. If you are renovating the office, you must also take out a fire and special perils insurance policy.
Both parties must sign the tenancy agreement within a year. Most property owners only accept leases of one year. You also need to pay stamp duty. This is computed on the gross rent, and you must pay it within fourteen days of execution.
You can hire a property consultant if you need help with the paperwork. These professionals can coordinate your lease process's paperwork and other technical aspects. Interested in incorporating your business in Singapore as a local or foreigner? Read on.
If you are looking for an office rental in Singapore, keep a few things in mind. Hopefully, this guide has given you a good overview of the process and what to expect. Remember to work with a reputable agent, compare prices and locations carefully, and get all the necessary paperwork before signing a lease. With a little bit of research and planning, you should be able to find the perfect office rental for your business needs.