It is usually a licence
Most serviced and managed offices are let on a licence to occupy: a permission to use the space rather than a legal interest in it. That keeps things simple and flexible, but it also means you do not get the renewal protections a business lease can carry.
Term and notice
Serviced terms range from a few months to two years or more, and managed offices typically run 12 to 36 months. Check the notice period, how and when notice must be served, and what happens at the end of the term if you do nothing.
Deposit
Expect one to two months of the monthly fee. London & Partners advises budgeting for two. The deposit and its return conditions are negotiable.
Business rates and VAT
Business rates are usually built into a serviced office fee because the operator is normally the rateable occupier. VAT is usually charged at the standard rate on serviced office fees, so check whether quotes are shown before or after VAT.
What to check before you sign
- The full list of what is and is not included
- Notice period, renewal and any price increase at renewal
- Deposit amount and when it is returned
- Meeting room allowances and their cost beyond that
- Whether you can add desks or move to a bigger office mid-term
- Whether you can use the address as your registered office
We go through all of this with you before anything is signed.