Renting office space is an important step for many businesses. Finding and securing the right premisses involves collaborating with commercial real estate agents. Understanding the payment process to real estate agents is important in planing and successfully landing your new office space. This article aims to shed light on all the aspects of agency fee when renting office space in Malta.
1. Standard Agency Fee Rates in Malta For Office Rentals:
Real estate agents in Malta typically charge a commission for their services, known as the agency fee. This fee is usually calculated as a 10% of the annual rent and are payable by both: 10% by the owner & 10% by the tenant. It’s essential to clarify this aspect early in the process to avoid surprises later on.
2. Choosing the Right Office Rental Agency in Malta: Flexibility and Transparent Fees for Lessees
The office rental market, like many others, is constantly evolving. Before Covid, property owners held the upper hand, especially as many new and foreign businesses were establishing offices in Malta. However, the dynamics have shifted, and now lessees have the advantage. With more options available, businesses searching for office space can negotiate better terms and enjoy greater flexibility. In response to these changes, professional commercial real estate agencies are adjusting their service fees for office rentals in Malta.
Since there is no law enforcing a standard commercial real estate service fee rate, agencies are free to set their own rates based on market understanding and internal policies. One of the leading agencies in the Maltese market, OfficeMarket.mt, stands out for its transparency, clearly displaying its rates on its website to help clients plan and make informed decisions.
OfficeMarket.mt’s fee structure is tiered based on the rental price of the office space. For office spaces priced up to €3,000 per month (excluding VAT), the agency charges a 10% fee of the first year’s rental price, plus VAT. This fee covers all services, from property search to negotiations and finalising the rental agreement. The fee is a one-time payment due upon signing the agreement.
For office spaces priced between €3,000 and €6,000 per month (excluding VAT), the fee drops to 7% of the first year’s rental price, plus VAT. This provides clients with expert guidance at a competitive rate, also payable upon signing the rental agreement.
For spaces exceeding €6,000 per month (excluding VAT), the agency fee is set at 5% of the first year’s rental price, plus VAT. As with the other fee structures, this is a one-time payment required at the time of agreement.
This clear, fair fee structure allows clients to fully understand the costs involved in their office search, while benefiting from OfficeMarket.mt’s expertise and professional support throughout the leasing process.
2. Payment Timing
Typically, the agency fee shall be paid upon signing the lease agreement. It’s essential to be prepared for this commitment and factor it into the overall budget for renting office in Malta. Understanding the payment timeline will help you to plan accordingly and ensure a seamless transaction.
3. Receipts and Documentation
Once the payment is made, it is crucial to obtain proper documentation, including a receipt from the real estate agency. This documentation serves as proof of payment and can be valuable for record-keeping purposes.
Renting office space in Malta involves collaboration with commercial real estate agencies, and understanding the payment process is important. Tenants must be well-informed to navigate the real estate landscape effectively. By addressing these financial aspects early on and obtaining proper documentation, businesses can embark on their office space journey in Malta with confidence and transparency.
If you require guidance regarding your new office search in Malta, feel free to reach out to Office Market a leading commercial real estate agency, via phone +356 7949 5969 or email info@officemarket.mt
