Do you plan to directly lease an office for your law practice? If you have the funds to do so, this can be a great option for starting your law firm, especially if you’re a team of three or more lawyers. But if you have limited resources and a relatively small firm, you may want to rethink leasing your own office space. In this case, it might be best to sublet an office or rent an executive suite.
Here are 3 ways directly leasing your office with a landlord might hurt your law firm:
1. UP-FRONT COSTS MAY SET YOU BACK
Unless you can afford to pay large up-front investments, you won’t have much cash left once you pay the office’s first and last month’s rent, plus at least four months’ security deposit. On top of those expenses, you still may need to build out your rented space to fit your needs.
While landlords sometimes pay for or contribute to some build-out costs, any contributions will be incorporated into your lease. So, you’ll be paying for build-out, with interest, over the term of the lease. Buying furniture (i.e. reception desks, tables, chairs, shelving, etc.) can get expensive as well.
2. MONTHLY EXPENSES CAN HINDER YOUR FIRM’S GROWTH