As a tenant of a commercial property, you will encounter various costs beyond just the monthly rent. From service charges and energy bills to taxes and insurance, the total cost is made up of several components. The main cost items are the bare rent, service costs, energy costs, municipal taxes, maintenance costs, insurance and any parking costs. By understanding all these costs in advance, you can avoid surprises and make a realistic budget for your business accommodation.
What are the basic costs for commercial property tenants?
The basic cost of renting business premises consists of several fixed and variable components. The base rent forms the starting point, but in addition, as a tenant you also pay service charges, energy costs and often certain taxes. These costs are usually listed separately in your lease.
When renting office space in Amsterdam or other major cities, you'll see that the total monthly cost often consists of several items. The basic rent is the amount you pay for the use of the space itself. On top of that comes service charges for common facilities and services. Energy costs for heating, electricity and water are also part of the standard cost items.
In addition to these monthly costs, you will face one-time expenses such as a security deposit (usually two to three months' rent) and possibly furnishing costs. When comparing different properties, it's important not only to look at the bare rent, but to consider the complete cost picture in your decision. For more information on finding the right business space, please visit our complete guide to renting office space consult.
What service charges do you pay as a tenant?
Service charges cover all the services and amenities that the landlord arranges for you. This usually includes cleaning of common areas, security, reception services, maintenance of elevators and climate systems, and general management of the property. You pay a monthly advance for this, which is settled annually.
The amount of service charges varies greatly by property and location. In modern office buildings with extensive facilities, these costs are higher than in simple commercial properties. Typical service charges include:
- Cleaning of entrance, corridors and sanitary facilities
- Maintenance of technical installations
- Security and access control
- Reception and postal services
- Garden maintenance and ice control
- Landlord management fees
It is wise to use the service charge statement check properly annually. You have the right to see the actual charges and can object to unreasonable items. Pay particular attention to whether the costs charged correspond to the services you actually receive. If in doubt, ask for specifications and receipts of expenses incurred.
Do you have to pay energy costs as a tenant?
Yes, as a tenant, you almost always pay for your own energy use. This applies to electricity, gas and water you use in your rented space. How these costs are passed on depends on the metering system in the property.
With individual meters, you enter into your own contracts with energy suppliers and pay directly to them. This gives you complete control over your consumption and choice of green energy. In properties with collective systems, the landlord distributes the total energy costs among all tenants, usually based on the number of square meters you rent.
To reduce your energy costs, there are several measures you can take:
- Opt for LED lighting and motion sensors
- Turn off equipment completely at night
- Optimize climate settings
- Invest in energy-efficient equipment
- Agree on energy conservation with your team
When viewing a property, always ask about the energy label and the average energy costs of previous tenants. This will give you a good idea of what to expect.
What taxes are borne by the tenant?
As a tenant of commercial property, you pay several municipal taxes. The most important is the user part of the OZB (property tax), which you must pay as a user of the property. You will also receive bills for sewerage, garbage and water taxes.
The amount of these taxes is determined by the WOZ value of the property and the rates charged by your municipality. The user part of the OZB is usually a percentage of the WOZ value. For sewerage and garbage taxes there are often fixed amounts per year.
Note that some landlords pass on these taxes through service charges, while in other cases you will receive assessments directly from the municipality. Check your lease carefully to avoid double payments. With all-inclusive rental structures, taxes are sometimes already included in the rent, which is easier administratively but gives you less insight into the actual costs.
What are your maintenance obligations as a tenant?
As a tenant, you are responsible for the daily maintenance of your leased space. This means that minor repairs and maintenance within your office are your responsibility. Examples include replacing light bulbs, minor repairs to doors and windows, and maintaining amenities you have installed.
The difference between tenant and landlord maintenance is established by law. Typical tenant maintenance includes:
- Interior painting
- Maintenance of locks and hinges
- Unclogging drains under normal use
- Replacing faucets and shower hoses
- Minor garden maintenance at an outdoor space
Major maintenance such as roof replacement, exterior painting and structural repairs remain the responsibility of the landlord. If in doubt about who should pay for what, consult the Minor Repairs Decree. Make good agreements about maintenance at the start of your tenancy and put them in writing to avoid discussions afterwards.
What insurance should you take out as a tenant?
For your business premises, you need at least a corporate liability insurance and contents insurance is required. Liability insurance covers damage you or your employees cause to third parties. Contents insurance protects your inventory, supplies and assets from damage caused by fire, theft or water.
Depending on your situation, additional insurance policies are wise:
- Glass insurance for large windows or glass facades
- Legal expenses insurance for legal conflicts
- Business interruption insurance in the event of temporary closure
- Cyber insurance for digital risks
Always check what the landlord has already insured. The building itself is usually insured by the owner, but damage to your part of the property or to others is your responsibility. Some landlords require specific insurance as a condition in the rental contract. Compare different providers and pay attention to coverage and deductibles to find the best value for money.
What about parking fees and additional amenities?
Parking spaces are often rented separately on top of your office space. Costs vary greatly by location, with parking in city centers being considerably more expensive than in business parks. In addition to fixed parking spaces, you can sometimes opt for flexible parking subscriptions or visitor parking cards.
Additional amenities you may be able to add are:
- Storage space in basements or attic
- Use of meeting rooms per hour or half day
- Reception services for mail processing
- Catering facilities or company restaurant
- Gym or sports facilities
Many modern office buildings offer bundle packages where you can use various facilities for a fixed price. This can be more economical than buying everything separately. Flexible office concepts often already include many amenities in the rent, which simplifies your administration and gives you flexibility to use facilities as needed.
What does furnishing your business premises cost?
Furnishing costs are often a hefty one-time investment when moving into new premises. Major cost items include office furniture, ICT infrastructure, lighting, flooring and any renovations. The total cost depends greatly on your requirements and the condition of the premises you find.
For a basic office design, consider:
- Desks and office chairs for all employees
- Cabinets and storage
- ICT cabling and wifi installation
- Meeting furniture and presentation equipment
- Kitchen equipment and sanitation
- Signage and corporate identity dynamics
To cut costs, you can opt for used furniture, lease arrangements or turnkey solutions where the landlord provides a fully furnished space. Plan your furnishing budget liberally and allow for unforeseen costs. It is smart to compare quotes from different suppliers and negotiate bulk discounts for large orders.
Are there any hidden costs you should be aware of?
When renting a commercial property, you sometimes encounter unexpected costs that are not immediately apparent. One major expense is the annual rent indexing, where your rent is adjusted for inflation. VAT obligations can also cause surprises if they are not clearly reflected in the rent.
Other potentially hidden costs include:
- Contract modification costs in case of adjustments
- Brokerage fees from brokers
- Final cleaning and repair costs on departure
- Late rent payment penalties
- Permit application fees.
Read the lease very carefully and ask for clarification on unclear clauses. Pay particular attention to provisions on notice periods, renewal terms and your obligations when you vacate the premises. If necessary, engage a lawyer to review the contract, especially for long-term leases. This investment can save you a lot of money by avoiding problems later.
How can you save on your business property costs?
Saving on business property costs starts with smart negotiating when you sign your lease. Ask for discounts for longer leases or try to negotiate a rent reduction for the first few months. Sharing facilities with other tenants in the building can also significantly reduce your costs.
Practical saving tips for your business housing:
- Choose a flexible lease that grows with your business
- Negotiate service charges and ask for transparent settlements
- Invest in energy-saving measures that pay for themselves
- Share meeting rooms and facilities with other companies
- Consider a location just outside downtown for lower rents
- Compare multiple offers and play landlords against each other
When creating a realistic cost budget for office space rental Amsterdam or elsewhere, add up all the cost components. Don't forget to build in a buffer for unforeseen expenses. Flexible office solutions can be interesting because many costs are already included in the rent, simplifying your financial planning.
Finding the right balance between cost and quality is important for your operations. By doing proper research in advance and mapping out all cost items, you can avoid financial setbacks. At Co-Office, we are happy to help you explore the various possibilities and find a solution that fits your budget and ambitions. Feel free to contact with us for personalized advice on flexible workspaces that keep your costs manageable.