Monday, July 15, 2024

Financial Considerations When Moving Office

Moving your office can temporarily turn your business upside down, especially if you do not plan every detail well. Having a budget for the move including possible insurance deductible, employee overtime, mover costs, deposits, penalties, and fees will help you have a smooth moving of your office.

Deposits to Repay on the Previous Office

When your tenancy ends at your previous office, you will have to contact your property owner and ask them for a deposit refund. If your office is managed by a letting agency, you will have to contact them instead. We recommend you email or write them when asking for the deposit to be repaid – doing this will allow you to have a record of when you asked for it.

You have a better chance of getting most or all of your deposit back if you leave the property with no damages. It is smart to get evidence of the condition of the property when moving if you and the property owner disagree on much deposit needs to be repaid.

Deposit to Pay on the New Office

Whether you are working with a letting agent on a non-manager or manager basis, they will ensure compliance with legislation to protect all your deposits. Usually, the agent will collect the first rent payment and deposit on your behalf before your tenancy starts. You can move your office to the new location as soon as the money clears, the landlord, and the tenant has received the signed tenancy agreement. Once the offer has been accepted by your landlord, you would be expected to pay a holding deposit which expresses your commitment to renting a property.

Insurance and Business Rates

Moving into a New Business Property

You must contact the regional LPD (Land & Property Services) Rating Office to let them know, to avoid receiving a backdated rate bill. You can also let them know how you wish to pay your rate bill.

Moving into a Newly Built Business Property

It is equally important to contact your local LPD valuation office if you are moving into a newly built business property. You will be issued a rate bill based on this. It is important to note that if you do not inform the LPS, a backdated rate bill could be issued. You can either save the LPS application form to your desktop or complete it in the screen before sending it to the LPS.

Leaving an Old Business Property

When moving out of old business property, it is important to contact your LPS. It is important to have your Ratepayer ID, Account ID, and the details of the new owners in the property at hand. You can alternatively use an online form to make changes to your rate accounts such as billing address for your rate bill and personal information.

Cost of the Actual Physical Move

Managing the cost of moving an office starts with understanding the costs associated with your office move as well as the ability to manage and control the budget of moving your office. The cost of moving an office depends on several factors such as location, office space aspirations, and even market conditions.

So it is essential you have the up to date and accurate information on service charges, business rates, and office rents for the area you are moving your office to. You can get this from your commercial property agent familiar with the average office rental prices and current office market conditions.

Other moving costs to consider include dilapidations on your existing office property, building insurance, and stamp duty. You should also not forget advisory fees such as agency and legal fees, office fit out, and office removals. These cost elements are essential in not only making your office relocation a success but it can also save you money in the long term.

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