Leasing a New Office? Here’s What You Should Ask Your Maintenance Company

2021 is finally here and we’re all gearing up for the triumphant return to the office. You may even be looking for a new one, with leases having lapsed during the vacant months and plenty of new spaces having opened up. Oftentimes, when one leases an office, they don’t give any thought to who their management company is, but who runs your building can have major implications on the smooth running of your business. Since a management company comes as a package deal with your landlord, knowing who they are and what they charge you for is as important as knowing the length of your lease. While there are many common practices amongst management companies when it comes to what they cover and what they don’t, some things may come as a surprise to a rentee who has a bad habit of skimming the contract.

To make things easier, I’ve written up five things to consider when evaluating a maintenance company so you can have a clearer understanding of what your bottom line costs will be, and the scope of the services included.

You might be charged extra for staying late at the office.

Most buildings, whether that be an office building or a shopping center, have regular working hours. At a certain time of day or night, the building's main engines (such as chillers) are turned off to save on energy and costs. If you or your employees want to stay at the office longer than the average hours, a maintenance company may charge you an additional fee. Make sure to know what rate that extra time will be billed at.

You may not be prepared for an emergency.

While it's unlikely an emergency situation will happen you and your staff should still be prepared for one in just case it does. Should (knock on wood) a fire alarm sound, having your team prepared will avoid a panic/freeze situation, or one in which one might run to the elevators to try and find floor plans and emergency exit plans, wasting minutes in a time-sensitive situation.

Ask your management company to perform a yearly drill. Your maintenance company should conduct exercises and provide guidelines and ensure all employees know the emergency procedures - such as we are prohibited from going into an elevator when there is a fire or a fire alarm. In most new buildings, when a fire alarm sounds, elevators would automatically drop to the ground floor in order to evacuate the people inside of it, but as this is not always the case, knowledge and preparedness is key. 

You may have to pay city taxes beyond what you originally thought. 

In addition to what you already pay, city taxes are due for shared areas outside of your office as well. In Israel, there are two ways this is calculated; the city tax of the building’s public areas - such as corridors, lobby, staircase, and all the areas that are not inside your office - is often calculated in proportion to the size of the property each tenant has rented. Sometimes, the city tax may already be calculated inside of your management fee. Make sure to know how your management company does things  to avoid any surprises.

Parking spaces also require maintenance.

Apart from a monthly rental fee for a parking space, there may be an additional maintenance fee for each parking space, calculated separately from the main management fee for your office. This is because parking lots are often separated from office buildings and require very different machinery and maintenance systems. 

You may be able to get extra services.

Because the maintenance company is mostly responsible for a building’s public areas, you can always ask them if they also provide services inside your office. If you need a light bulb changed, you might be able to get that done in house rather than calling in a contractor, saving both time and money.  It’s also a much more efficient way to solve any technical problems you may have, as the superintendent knows the building inside out. Management companies have relationships with subcontractors and can offer you services that are supervised, insured, adhere to the quality of the maintenance company, and are ultimately at a better price. 

I hope this article helps shed some light on things you may not have considered. If you have any questions, I’m always a message away.