Office Rental Service Fees: Definition and Classification

In addition to rent and VAT, office service fees are a significant expense that many businesses often consider carefully. So, what exactly are office service fees and what do they encompass? This article will clarify all your questions. Join Maison Office in exploring the details of office service fees and make a more informed decision when leasing office space.

What Are Office Service Fees and Management Fees?

Office Service Fees (Commercial Service Charge) are charges collected by the building owner to cover the maintenance and repair of various components within the building and the areas that your business uses for its operations.

In most cases, office service fees and management fees for leased office spaces are charged by the property owner based on the area occupied by the business within the building (measured in square meters). Specifically:

• Management fees for Class A buildings typically range from $5 to $7 per square meter per month, representing about 10% of the rental fee for Class A office spaces.
• Management fees for Class B buildings typically range from $3 to $5 per square meter per month, representing around 10% of the rental fee for Class B office spaces.
• For Class C buildings, management fees are often included in the rental fee. If charged separately, the service fee does not exceed 10% of the rental fee.
• In the case of serviced offices, service fees are typically incorporated into the monthly rental cost.

What is Included in Office Service Fees?

Now that we understand the definition of office service fees, let’s explore the various components typically included in the rental service fees for office spaces:

1. Building Maintenance, Renovation, and Upgrades: This includes repairs and upgrades to the building’s interior, architecture, electrical and plumbing systems, internet infrastructure, elevators (for people and goods), lighting systems, fire alarm systems, and central air conditioning.
2. Cleaning Services: This covers the cleaning of office spaces, restrooms, and maintenance of indoor plant life within the office.
3. Reception Services: Services such as guest reception, assistance with mail and parcel delivery, etc.
4. Security Services: This includes the building’s security and guarding services. Additionally, in some buildings, property owners may charge for the following costs as part of the office service fees:
5. Building Operating Fees: This is primarily used to cover salaries for the building’s management and staff.
6. Insurance Fees: This fee covers potential liabilities, such as fire or natural disasters, that may occur while the tenant is leasing and using the office space.
7. After-Hours Service Fees: If your employees work outside regular office hours, the building owner may charge additional fees. These fees usually include extra costs for electricity and water consumption (mainly due to increased air conditioning usage) and are incorporated into the service fees.

We hope this information about office service fees, management fees, and the various components included will help your business make an informed decision when selecting an office location. Thank you for following our guide.

Bui Duc Huy

Editor and content team manager at Maison Office.

With over 5 years of experience in consulting and extensive content editing in the real estate services and interior design field. Sharing valuable information with customers, partners, and attracting millions of views.