JARGON BUSTER - SERVICE CHARGE

"WHAT ARE THE KEY CONSIDERATIONS IN SEEKING NEW OFFICE ACCOMMODATION?"

> Location, Location, Location

Decide on location. If you get this wrong you can't correct it except by moving again! If your business is in manufacturing, easy access to sources of raw materials and to your markets may be essential. If you are running a shop, it should be in a location where the public will notice it and find it easy to visit. For cost reasons you may have to accept some compromise.

Consider your business strategy, the number of people you will be employing. 

> Do you have expansion plans

Consider ongoing plans. Should you ensure at the outset that there is space for expansion or will you rely on a move to larger premises at a later date? Assess the quality of the workspace environment and how this may impact on staff and productivity. Think everything through before you make a final choice.

Certain Landlords in Liverpool, for example, Downings and Bruntwood have a large office portfolio and are better equipped to help you find new premises within there portfolio as you expand and without the costs of breaking a lease, etc. 

> Preparation

Next, prepare a specification of the premises you want. Sketch out a plan on graph paper, with details of your requirements. From this you can calculate the floor area you need. Don't forget car parking, and loading and unloading facilities. And remember your utilities requirements - what power supplies will your processes require, and what telecommunications facilities for example?

At this stage it may be worth speaking to a professional.  A good space plan, telecommunications and IT strategy may seem expensive but in the long run they may save you thousands of pounds.  Speak to one of our sponsors and you may be surprised how affordable it is.

The other key decision at the outset is whether you purchase, lease or take a licence on the premises.

Calculate how much you can afford to pay in outgoings on the premises, whether you buy or lease. In addition to rent or mortgage repayments you need to allow for general rates, water rates, service charge for maintenance and cleaning of common areas, and insurance of the building.

Armed with this information, you will be able to give a us a detailed summary of what you're looking for, and you will be able to consider advice about the size, type, form of tenure and location of premises that best suit your needs.

"WHAT ARE THE PITFALLS AND WHAT ARE THE SAFEGUARDS?"

If you are leasing the property, you need to be clear who is responsible for repairs: the landlord, or you as the tenant.

Check that the property has planning permission for your use and that there are no restrictions on your ability to run your business, (there might be, for example a limitation on working hours or noise). If you need planning permission for your use, remember to allow at least eight to ten weeks (and, unfortunately, sometimes a lot longer) for the application to be processed by the Local Planning Authority.

Altering services such as electricity and gas can be extremely expensive, so ensure that the property has adequate mains services and that they are in good order. Ensure too that the premises comply with health and safety requirements, including fire regulations and access requirements under disability legislation.

In checking the proposed lease with your chartered surveyor and solicitor, pay particular attention to the clauses about service charges, rent reviews, sub-letting and assignment, repairing and decorating obligations and personal guarantees. Also make sure you know whether you will have security of tenure.

You may want to alter or adapt the building to suit your requirements. If you are a tenant, almost certainly, you will have to obtain your landlord’s approval for these works before carrying them out. So allow enough time. 

If you are taking over a building which has been previously occupied, make sure you understand which fixtures and fittings will be removed when the previous occupier leaves.

 If your business is a start-up operation, you might consider finding premises which you can occupy under a licence rather than taking on a lease.

Another option, usually relating to office space and mainly found in major urban areas, is to look for ‘serviced office’ space. Here you enter into a service contract rather than a lease, and the contract may provide you with workstations, secretarial services and so on, as well as the office space itself. Such contracts range from the very short-term to long-term arrangements.

" IS THERE ANY FINANCIAL ASSISTANCE AVAILABLE IN LIVERPOOL?"

Grants and other incentives might be available from central government or your local authority. Contact Business Liverpool or Greater Merseyside Enterprise, who will be able to advise you.

"HOW LONG WILL IT TAKE TO FIND NEW PREMISES?"

Plan well in advance. It will vary with the circumstances but, as a rough guide, allow between three and six months. It is vital that you should be in control of the timetable, so that you are not forced into hasty decisions.