Choosing Serviced Office Space - Top Tip 7: The Operator\'s financials

Like any other industry there are good and bad operators.

Some have been around for decades (we have been around for some 26 years now!).  Others come and go with market conditions.

When putting a deposit down to secure your office space, it can sometimes be a substantial amount of money.  You’ll want to make sure this is protected in case the operator falls into financial trouble.  If the company can’t do this ask what protection it does provide for protecting your deposit.

Our top tip is to be very wary if no deposit is asked for.  Bear in mind that deposits or service retainers are generally held to protect the operator against unpaid service and rental bills.  

Deposits are only applied against accounts to clear unpaid invoices as a last resort, and this means the contract is broken.  Generally there will be discussion before this stage.  

Holding a deposit or service retainer reflects a level of maturity and a business-like approach from the Provider.  A good Provider will surely work with the Occupier to find a solution that works for both parties and which keeps the Occupier in the premises so they can trade. 

If no deposit is taken/asked for doesn’t it indicate that the provider views your business as being ‘quick in, quick out’?