Leaving an office

Imagine if hotels had an "exit cost" after staying just a few nights.

"Wait," you'd think, "I left the room clean. Didn't damage anything. Didn't break my contract - why are you charging me to leave?"

That was my first thought when I realised that flexible workspaces have "exit costs." And the worst part? They all use different terminology:

Cleaning costs

Make good costs

Reinstatement

Exit costs

Termination fee...

In traditional office spaces, tenants must return the space to its original state or pay to restore the unit to bare-shell (stripping everything out, including flooring and lighting!).

Flex spaces don't require this - so what are these costs for, and how do you avoid getting ripped off?

Operators need the ability to charge departing tenants since some make layout changes or damage fixtures.

However, you'll often encounter questionable and inflated charges, sometimes reaching 1-2 months' rent.

ALWAYS review these charges and read the terms before signing a contract.

Some operators have a fixed exit/cleaning cost per square metre, while others are less specific.

If the contract doesn't specify an amount, ask them to set a maximum limit.

Your broker should know what's reasonable.

Another tip: get a quote from an independent contractor - your broker can help with this too.

And if they're not being helpful, give me a shout.

I might know a guy ;-)