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The Truth About Serviced Offices ...

Written by: Leela Cosgrove

Article Overview: Are you thinking about leasing a Serviced Office? Don’t do it until you’ve read the 5 mistakes I made.

The Truth About Serviced Offices ...

When I first started my own business, I instantly knew that working from home was not for me. Previously, when I had been studying, I’d found it was just too easy to get distracted - “I should do some washing”, “I’d better hang out that washing”, “It’s going to rain, I’d better bring that washing inside”, “May as well get the ironing done while I’m here” (Sound familiar?).

After a few enquiries, a colleague recommended a serviced office within my price range. Or, that’s what I thought.

The original price I was quoted - $500 a month – very quickly ballooned out to between $900 and $1,200 a month.

I want to tell you about a few of the mistakes I made – so you won’t make the same ones I made!

Things I wish I had done #1: Not gotten distracted by the shiny foyer and pretty view!

Serviced offices are impressive. The larger the office and the more impressive the view, the more you’ll pay for it. As nice as it was to have a view out over the city, it wasn’t really a necessity. I got caught up in the glamour and excitement of it all and didn’t pay enough attention to the practicalities and my budget!

Sure, they may have an office that I could use in Tokyo – but I should have asked myself “Yes, Leela – but how much time do you actually spend in Tokyo?”

Things I wish I had done #2: Looked more closely at the Contract

I rushed into the decision out of necessity and signed the contract without having anyone look at it. Big mistake!

If I had of read it more closely I may have realised that it stipulated that I had to take out 3 months of the company’s ‘virtual office’ service. This cost me $400 a month to have my phone answered and my mail redirected. Which may have been less annoying if the phone actually rang or there was any mail.

Things I wish I had done #3: Looked more closely at the telecommunications charges

My typical monthly telecommunication fees in my serviced office were around $350 – for less than 1.5 Gig a month of downloads, very few interstate phone calls and no international phone calls.

If I had of used my mobile phone (which wasn’t possible due to coverage issues) I could have gotten all of this for under $120/ month.

Things I wish I had done #4: Gotten a condition report

When I was preparing to move out of my serviced office, the manager came to do a final inspection. She noted the scratches on my desk and the marks on the wall.

Despite the fact that I had verbally pointed this out to a staff member (who had since left the company) when I had first moved in, I was told they would be keeping my entire bond as a ‘make good payment’!

When I made it clear that I wouldn’t stand for this, they contacted the ex-staff member who backed up my story, so they eventually backed down.

In retrospect, I should have demanded completion of a detailed condition report. (In fact, I should have taken pictures and got them signed BEFORE I moved in to make absolutely sure there were NO discrepancies and source of doubt). As a tenant, this was as much my responsibility as the office’s and if I had requested one I would have saved myself a lot of trouble (and arguing).

Things I wish I had done #5: Get feedback from people who have used the serviced office previously

Now, whenever I mention the company name to other people, I’m constantly told horror stories very similar to my own. If I had taken the time to do this in the first place, I may have saved myself a LOT of money – not to mention time and trouble!

The most important thing to remember in a serviced office is that everything has a price. I’ll never forget the time I queried a $20 charge on my invoice, only to be told by the office manager that it was for a “10 minute minimum block charge for the administration assistant to put stamps on your letters” – I only sent out four and I had to pay for the stamps on top of that!

Board room hire - $100
Typing Services - $50
Telecommunications - $350
Lessons I’ve learned from this experience – priceless!

Related Articles
  Global Serviced Apartment Industry Report 2010
  Business Travel and Relocation: Leased Apartment or Serviced Apartment?
  Serviced Apartments – Giving a Whole New Meaning to Corporate Living
  Serviced Apartments - A Smarter Option for the Business Bedouin
  Do you know what to look for when selecting serviced apartments for your business?

Article Tags: Serviced offices, virtual office



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Me Too - So.... - I write. Its a form of 'pull' marketing that suits me, though I'm quite an outgoing person. I know all the stuff about it not being me, 'they're just not ready yet'. Truth is I'm not good with rejection and will walk if I get too much of it - so I do it differently. Each to his own I guess. Still, I wish I had the guts to do those 500, just to say 'I did it'! Will read that article!
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