Do you have the question, "What criteria should I use to choose a rental office?"

Here, we will introduce the key points to consider when choosing a rental office. Please use this as a guide to help you make your decision.

Is it easily accessible?

Whether it's a leased office or a rental office, accessibility is very important. A good location makes it easier for clients to visit, which can directly lead to more business opportunities.

Especially in professions where building trust with clients is crucial, such as legal or accounting services, the ability to meet directly for consultations becomes a strong advantage.

In addition, the accessibility of the office is important for both yourself and your employees, as it reduces commute time and can also improve the attractiveness of your company’s job postings, making it easier to attract candidates.

Based on the above, accessibility is a key factor when choosing a rental office.

Is there parking available?

This ties into the accessibility discussion, but it is also important whether clients and employees can visit the office by car, not just by public transportation.

Therefore, if there is a parking lot or parking space near the office, clients and employees can visit the office by car with peace of mind. Especially in urban areas like Tokyo, where parking spaces are limited, many people may feel uncertain about whether they can drive there.

Just like with leased offices, you should check in advance whether there are parking spaces available nearby for rental offices.

Is the monthly fee and renewal cost not too expensive?

A major advantage of rental offices is that they allow you to use office space at an affordable price. Therefore, it's important to compare whether the fees are not too expensive.

The use of rental offices is a great match for individuals who start their own businesses or sole proprietors. This is because setting up a leased office and office equipment for a company can incur high initial costs.

By using a rental office, you can start your business with a low initial cost. However, wouldn't you want to keep the rental office costs as low as possible?

In rental offices, there are generally initial costs, monthly fees, and renewal fees. However, some rental offices offer renewal fees for free. When choosing a rental office, it is important to check the base monthly fee and whether there are renewal fees.

Is there any issue with security?

Rental offices tend to have more people coming and going compared to regular offices, so security is an important consideration. A rental office located in a building that contracts with a security company, where security personnel can respond immediately in case of an incident, would provide more peace of mind.

Additionally, it is better to use key cards rather than cylinder locks, and each private office should ideally have its own lock for added security.

Is it an environment where you can work comfortably?

Rental offices must also provide a comfortable and easy-to-work-in environment. Check the facilities in private rooms and common areas, as well as the cleanliness of the office, to assess whether it will be a comfortable place to work.

「What specific benefits does a rental office offer?」
By making the most of the benefits of a rental office, you can start your business at an affordable price and increase the speed of your business operations.

Here, we will introduce the benefits of rental offices.

Initial costs for setting up an office can be reduced

Setting up an office requires significant initial costs, including rental agreements, parking contracts, and brokerage fees. For freelancers and sole proprietors, the need for a substantial amount of capital can feel like a heavy burden.

However, with a rental office, you can set up an office at a low initial cost. There are no costs for security deposits, key money, or interior construction, which allows you to significantly reduce your initial expenses.

Office furniture, equipment, and internet connectivity are already provided

Offices require desks, chairs, and other office equipment such as copiers. Acquiring all these items takes both time and cost.

In a regular office, after signing the lease agreement, you also need to purchase and set up furniture, contract for internet services, and configure office equipment like copiers.

Setting up the internet connection alone typically takes a few weeks, including the necessary installation work.

However, in a rental office, office furniture, equipment, and internet connectivity are already set up, so you can start using them as soon as you move in.

One of the major benefits of rental offices is that they allow you to set up an office environment at an affordable price and start your business quickly.

Running costs are affordable

Even after setting up an office in a regular space, ongoing running costs will still accumulate. Office rent, communication fees, and other expenses can become a significant burden, especially when your company's revenue is low.

In that regard, rental offices have very affordable running costs.

Most rental offices can be used with only a monthly fee. One of the attractions of rental offices is the ability to reduce running costs, such as rent for the property and communication expenses.

You can register your company

Rental offices allow for company registration. When establishing a company, you need to register the office location at the Legal Affairs Bureau. If you register your home address, there may be privacy concerns or restrictions due to building regulations that prevent you from using the address for registration.

In that regard, by using a rental office, you can protect your privacy and avoid cases where the address cannot be used for registration.

The ability to register your company is a major benefit of rental offices.

You can interact with other companies

Rental offices house various companies. Some rental offices even organize networking events, providing opportunities for interaction with other companies.

By interacting with people from different industries, you may connect with business opportunities that go beyond your imagination.

Being able to interact with other companies is a unique benefit of rental offices.

You can adjust the office space according to the number of people.

Most rental offices offer spaces ranging from single-person offices to multi-person offices. If you started with one person but later hired employees and your team has grown, you can change to a larger office.

The ability to easily change your office according to the number of people is a unique advantage of rental offices.

「Aren't the terms "rental office" and "leased office" the same?」

Both rental offices and leased offices involve "renting an office," which is the same. However, there are differences between the two, and recently, people often make a point of distinguishing between the terms.

The reason for distinguishing between rental offices and leased offices is that they have different characteristics.

Therefore, here we will explain the differences between rental offices and leased offices.

The contract types of rental offices and leased offices

The decisive difference between rental offices and leased offices is the "contract type."

Most leased offices are rented under a "building lease agreement" based on the Land and Building Lease Law. The key feature is that they can be used for long periods with the renewal of a fixed contract term.

On the other hand, rental offices are generally used for a fixed period, and the contract ends once that period is over. Although it is sometimes possible to renew the contract, they are basically intended for people who want to use an office for a short term, typically from a few months up to about two years.

To give a familiar example, a leased office is like a rental apartment, while a rental office is more like a monthly serviced apartment. Just as a monthly serviced apartment is fully equipped so you can start living immediately after moving in, rental offices also typically come with all the necessary office facilities already in place.

Next, we will summarize the differences in features other than the contract format.

Characteristics of Rental Offices and Leased Offices

We have summarized the characteristics of rental offices and leased offices.

【Characteristics of Rental Offices】

・Since the necessary office equipment is already provided, the initial cost of setting up the office can be kept very low.
・Because it can be rented only for the needed period, it can meet short-term needs such as “I only want to use it for three months” or “I just want to rent it for half a year.”
・You can choose the type of office according to the number of people using it, such as “for one person” or “for six people.”

【Characteristics of Leased Offices】

・It is suitable for long-term use as a business base.
・You can customize the office to reflect your company’s image through interior work and renovations.
・It is easy to implement security measures.
・You have to pay the actual cost for interior work and any equipment necessary for the office.

From the above features, by choosing an office that suits your company, you can set up an office at a low cost and create an office that meets your company’s specific needs.

「What kind of people use rental offices?」
Some people may be curious about what kinds of individuals actually use rental offices./p>

Here, we will introduce the types of people who use rental offices.

Entrepreneurs or sole proprietors who started their business alone

When starting a business or running a solo enterprise, people generally want to keep expenses and running costs low until the business becomes stable. However, opening an office for company registration involves costs, so rental offices are often used to reduce these expenses.

Some people are hesitant to use their home address for registration due to privacy concerns, and in some cases, building regulations do not allow a home address to be registered.

In such cases, opening an office in a rental office allows you to set up an office while keeping initial costs and running expenses low.

Additionally, having a physical office makes it easier for clients to perceive that the company has an actual presence, which helps build trust.

Startups and venture companies

Startups and venture companies that expect rapid business growth also use rental offices.

Setting up a leased office takes not only costs but also time for network installation and preparing office equipment. However, you cannot start working until all these are in place.

Rental offices are suitable when you want to move in and start using the office quickly to speed up your business operations.

Additionally, rental offices are ideal when the number of staff or the duration varies for each project, as they allow for flexible office contracts.

Many companies use rental offices according to their growth, and once their staff and operations become stable and increase, they establish a base with a leased office.

Company branches and sales offices

Rental offices are also used when companies want to open branches or sales offices.

As a business grows, there may be situations where a company wants to open branches or sales offices outside the prefecture or in regional areas to expand its presence.

However, there are also many cases where companies do not need a full office with multiple staff, or only want to use the space for specific purposes such as meetings or interviews.

In such cases, using a rental office is attractive because it allows you to expand your business while keeping costs low.

「How do you rent a rental office?」
While many understand the convenience of rental offices, some may exclude them from their options because they are not quite sure how to go about renting one.

Here, we will specifically explain the process of using a rental office.

Inquiry to a Rental Office

First, you can make an inquiry through the rental office’s website or rental information sites. One cost-saving point is that rental offices can often be contracted directly without going through real estate or other intermediaries.

Viewing Reservation

Check the availability of offices when making an inquiry, and if you find an office you are interested in, schedule a tour.

Check the Office Tour and Contract Details

Visit the office directly for a tour. During the visit, make sure to ask about the initial costs and usage conditions. It is also important to check the usability of shared spaces and office equipment.

Prepare the required documents and apply

Once you decide to move in, gather the required documents and proceed with the application. The required documents are generally similar across rental offices.

However, the required documents differ depending on whether the applicant is a corporation or an individual.

In the case of a corporation

1. Company Profile
2. Certificate of Company Registration
3. Seal Registration Certificate
4. Resident Certificate of the Representative or Guarantor
5. Seal Registration Certificate of the Representative or Guarantor
6. Photo ID of the Representative or Guarantor

In the case of an individual

1. Certificate of Residence
2. Seal Registration Certificate
3. Business Plan
4. Resident Certificate of a Third-Party Guarantor
5. Seal Registration Certificate of a Third-Party Guarantor
6. Photo ID of a Third-Party Guarantor

Some individuals may be planning to register a company in the future, but it is also possible to first sign a rental office contract as an individual and later switch it to a corporate contract.

Application Review

Since rental offices share certain areas with other tenants, most of them conduct a basic membership screening to ensure proper conduct and maintain etiquette within the office environment.

Contract

After the membership screening is completed, the contract will be signed. In most rental offices, the agreement is finalized either through direct interaction or by postal mail.

Payment of Initial Fees

In most cases, rental offices require payment of an admission fee and one to two months of rent in advance. Unlike traditional leased offices, there are usually no brokerage fees or key money/deposit required.

Start of Use

Once the initial payment is confirmed, you will receive the office key on the contract start date. From that day on, you can move in and bring in any additional items you need besides the furniture and equipment already provided.

Since the internet and other facilities are ready to use immediately, you can start your business right away.