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Co-working provider keep customers paying during Coronavirus

by | April 19, 2020 | 0 comments

Leased office space vs Snugg

At a time when the world is in lockdown, with companies and people are pulling together, A leading co-working and office space provider announced they still expect their tenants to pay rent for offices they are being told they cannot use. With a significant amount of these tenants being small businesses, possibly single director ltd companies, furlough options and government support is limited. Having not been tied into one of these contracts I also assume the same applies if you are off sick or want to take an extended vacation, you are still paying rent for space you are not using.

We believe co-working spaces can be a fabulous space to work in and some great communities have been born from them, but now we are seeing these communities evolve online and transform from local to a limitless audience and unprecedented creativity.

Have the days of co-working spaces reached their peak due to their relentless focus on growth and satisfying shareholders before the customer?

If you currently rent a private office with the likes of WeWork or one of the many other office space leasing companies, you could switch to working from home, save your business cash and improve your quality of life significantly.

Your Snugg could generate income within 3 years.

Running the numbers

Let’s look at a couple of examples:

On doing some research, from one leading provider, a 1 person office in Cambridge costs from £750 per month, £9000 per year to rent. This office is typically less than 5 square meters in size and allows for little personalisation. These offices are often in the middle of large cities, so then you also have the challenge of commuting & parking.

For the same monthly payment over 3 years you could secure a loan, build a 15sqm Snugg in your garden and beyond this point be paying zero rent from year 4 onwards, freeing up money you can invest into your business or pay yourself. Of course there will be the additional cost in electricity, however this will likely be offset by the savings in commuting, parking and buying food at local expensive coffee shops.

Over 10 years, this could save you and your business over £60,000

Bigger you go, the better it gets

Want to go even bigger, look to finance over 5 years and you could invest in our largest size Snugg, have money left over for office furniture and have a truly stunning space to call your own.

In the second scenario, consider you have a small company with 3 employees, and not looking to grow too much within the next couple of years. In this example annual rent will cost you in excess of £24,000!

Considering our service is unique to you and totally bespoke, apply a little Snugg’spiration and consider what we could build you a couple of years of the above rent!

It’s not just about the money

In addition to the savings, you will also gain valuable additional space for your home, as it is unlikely you will use the Snugg just as a work space, and of course there is the added property value to your home to consider. Thinking a Snugg is still beyond your reach, read our Financing Your Snugg post here 

Whichever size you go for, you end up with an asset, either personal or your company depending on your accountant and company situation, that you can use to suit your work schedule. Take a look at our article on the Benefits of Working From Home to see how this could benefit you in ways other than just financial, such as your health and the environment.

 

*Finance illustrations are purely an example based on rates taken at the time or writing and no way are to be deemed financial advice. Please always seek the advice of an independent financial advisor.
*Rental prices are for illustration only and should be verified with your local co-working space. Based on a private office for 1 person.

Header image courtesy of Kaboom Pics

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