Searching for the right office space to expand your business and team is one of the biggest dilemmas you may face, which one to consider and why - Serviced or Managed offices? As both the terms ‘managed office’ and ‘serviced office’ seem very similar and are becoming popular day by day, we thought it would be useful to guide you on the difference between the two. So, let’s see what’s the difference, and why should you choose one option over the other?
Office Setup, and Tailor-made:
A serviced office is a workspace that can be rented on a flexible and short-term basis and is typically sign for a tenure of 1-2 years. Serviced offices are fully serviced office spaces that incorporate all-inclusive prices from renting to all relevant amenities such as reception services, Wi-Fi, cabins, furniture, IT infrastructure, cleaning, etc. These office spaces are specially built for modern businesses that don’t have enough time to focus on setting up their offices. All you have to do is simply turn up, plugin your computer, and start working hassle-free. The only disadvantage you will find in serviced offices is that you don’t have enough scope for branding or customization.
Where managed offices are usually a single vacant space that is rented out by a company. The tenant is required to share a detailed floor plan and sometimes has to select and install their furniture or network infrastructure. The advantage of leasing a ‘managed office space’ is that you get wide scope for promoting and branding your organization, and premises are customized as per your requirements.
Upfront Costs and Accounting:
In a serviced office, you can initially benefit from our services, which save a large chunk of the set-up cost. Additionally, you only have to pay a single bill that will cover all your amenities and other operational expenses, which is completely hassle-free. The drawback about the serviced office is that the add-on services such as a meeting or conference room are chargeable and are not included in the monthly bill.
Before signing the final agreement of managed office, take time to evaluate the actual lease, and look for the additional costs that they may not add to the agreement and could cost you much more than what you expected. The drawback about the managed office is that the billing and upfront costs, such as utilities, facilities, etc., have to be managed and paid individually every month.
A serviced office provides a very dynamic and flexible environment. A flexible office enables the business to choose their workspace in the location of their choice, customise it as per needs and preferences and for a period that could be as short as a month or as long as several years. Flexible office space comprises everything you’ll find in a traditional office, from internet and phone services, chairs, desks, computers to every little essential utility, enabling businesses to work better and more efficiently.
A managed office is usually not mainly built to be rented out individually. No option for short-term flexibility is provided, and you have to go for a multi-year contract. Renting a managed office space comes with an additional task as sometimes we need to arrange our furniture, desks and essential utilities. Also, we are required to take care of our essentials, and book well in advance the meeting rooms and cleaning services.
Serviced offices are an excellent option for growing businesses, start-ups, etc., who want the flexibility to save on costing and facilities as per their needs and preferences. But the major disadvantage is that they don’t provide a personal space for client meetings or visitors.
As managed office spaces are leased on a long-term basis and have an identity, they can be provided with a customized meeting room to meet clients.
We hope that this article must have explained to you the difference between serviced offices and managed offices. Now you have an idea of the office space, list down your needs and preferences and make a decision wisely.
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