Find out the overtime fee when renting an office and how it is commonly calculated
In the current market, renting an office is an indispensable need of all domestic and foreign businesses operating in Vietnam.
Table of content
1. The concept of overtime fee when renting an office
2. Why do you have to charge overtime when renting an office
In the current market, renting an office is an indispensable need of all domestic and foreign businesses operating in Vietnam. Depending on the location, area and type of office, the contract between the two parties that the lessee must pay different rental fees. In addition to the room rent, the lessee also has to pay a number of costs incurred. Overtime fees are the most common type of expense. Let's find out with Arenal through the following sharing!
In addition to the room rent, the lessee also has to pay a number of costs incurred.
1. The concept of overtime fees when renting an office
Overtime fee is understood as an additional surcharge due to the lessee using the office overtime compared to the regulations on operating time of the building as agreed on the contract.
Office buildings for lease will be based on the state's labor laws, providing a fixed working time frame. Usually, there will be a working milestone from 8:00 to 17:00 from Monday to Friday every week to work
However, depending on the contract agreement and working hours, it may change when renting an office
All contractual overtime hours will be billed for overtime. The lessee has to pay an extra fee to the building owner/building management and call it an office rental fee
2. Why do you have to charge overtime when renting an office?
When the lessee works outside the office's prescribed hours, the building's service fees are also incurred such as: water, electricity, security, cleaning, etc. and other consumable facilities.
2.1 Overtime fee for Grade A and Grade B office segments
Currently, Grade A and B office buildings all charge for working overtime, but the fee depends on the size of the building.
The reason why? Because the purpose of office rental buildings is for customers to rent to work. All rental offices need to install air conditioning and lighting systems in the center, and in public places.
When the customer works overtime, the lessee still has to operate those utilities, air conditioning, lighting, security, etc. Attentive service to customers. Therefore, the overtime fee is reasonable and necessary
2.2 Overtime fee for Grade C office (cheap office)
In Grade C offices or offices with a small area, wall-mounted air conditioners will often be used, with electricity meters installed directly for each room. So the system will automatically calculate the electricity bill each month for that tenant. The lessee only needs to pay the extra cost for security guards or support staff during the time the business works overtime.
When the customer works overtime, the lessee still has to operate those utilities, air conditioning, lighting, security, etc.
However, the current office rental units are extremely competitive to attract customers. Therefore, there will be many building owners who are more willing to negotiate discounts as well as these overtime fees.
Besides, the room rates and overtime rates are negotiated at an appropriate price, your company will save a significant extra amount each month.
3. Overtime charging method when renting an office
On the office market for lease in Ho Chi Minh City today, there are 3 forms of overtime charging that have been applied in many buildings (both Grade A, B and Grade C low-cost office segment).
3.1 Calculated by office
These calculations are applied in many low-cost office buildings and this is the easiest calculation method to understand. The cost is fixed according to the initial agreement on the contract.
Example: In the contract signed between the lessee and the building management, it is 300,000 VND/office/hour
3.2 Calculation by area
This calculation is based on the number of square meters of office space, the higher the total area of the office, the more fees the business will pay.
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Calculation formula: Charge rate/m2/h
3.3 Charge based on device used
This calculation method is not common in HCM, because the control ability of the management unit is not guaranteed. Because the number of devices used for each business is not fixed.
Calculation method: Number of devices (air conditioners, projectors, lights…)/hour of use.
For this calculation, the overtime fee is usually waived if the business uses few equipment, or sometimes works overtime.
In each rental contract, there will be an overtime fee agreed between the parties in advance. Even if your business doesn't have an overtime schedule, make this clear in your contract to avoid conflicts later on.
Above is the information and how to calculate the overtime fee for businesses when renting Arental offices sent to customers.
This calculation is based on the number of square meters of office space, the higher the total area of the office, the more fees the business will pay.
At Arental, we provide office rental services and support services for businesses such as:
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All-inclusive office
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Virtual office (virtual office district 1, virtual office district 2, virtual office district 3, virtual office district 7, virtual office Phu Nhuan district)
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Shared office, working space
You can refer to choose the most suitable office solution.
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