Common Mistakes

Negotiating without professional help

To compare office space options, look at the effective rental rate. At Lihong, we spend our days negotiating with office building owners so we know the best deals. We do the ground-work so that you can properly assess and select the right property. Let us help you negotiate your lease so you can concentrate on running your business.

Working directly with the building agent

The building agent is appointed by the owner. His job is to promote the building and get the highest possible rent, always quoting a higher rent than what is actually achievable. The building agent will not point out building faults or disadvantages. Also, you are not saving the cost of the agent's commission by working directly with the building agent. The building agent appointed by the owner receives a commission when you work directly with him.

Leaving it too late

Start looking for office space 3 to 6 months before your planned move in date. By looking early, we have negotiating leverage with the building owner. When you leave it late, the building owner knows you're under time-pressure. Also, renovating an office space takes time. Besides finding the space, there's reviewing of tenancy agreement, selecting an interior designer and contractors (including for IT installations), selecting designs and furntiture, acquiring renovation approvals, carrying out the work and airing-out after the work is completed.

Not using a lawyer

Let your lawyer review your contract before signing your tenancy agreement. You're committing a significant amount of money over several years. The owner's standard contract is drafted by his lawyer. Your interests need to be protected. And if you've just established your firm in Beijing, it's important that all lease documentation meets government requirements for your company's legal registration.

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