The Hidden Costs of Renting an Office in London

Think renting an office in London is all about the monthly rent? Not quite. The hidden costs of renting an office can quickly catch people out – and in a city like London, those surprises can be expensive.

If you’re budgeting for a new space, this guide will walk you through what to expect, what to ask, and how to avoid getting stung by extras nobody mentioned upfront.

Quick note – we’re talking here about conventionally leased office space, not serviced offices.
With a serviced office, you’ll usually pay one all-inclusive monthly bill that covers rent, cleaning, furniture, broadband, and more. But with a conventional lease, nearly everything is itemised – and that’s where the hidden costs can creep in. Unsure which is the right fit got you? This blog post will help you decide whether to plump for a serviced office or a conventional lease.

Why hidden costs catch so many people out

Rent feels like the obvious cost – but commercial leases are packed with fine print. Without asking the right questions early, it’s easy to miss charges buried in service agreements, legal terms, or the space’s condition. Most people focus on location and rent, assuming everything else is minor – until the first invoice lands.

What most people think is included (but often isn’t)

Many tenants are surprised to find the rent doesn’t cover things like cleaning, air conditioning, or even broadband installation. Costs like service charges, business rates, and dilapidations are often overlooked or misunderstood. These extras can add tens of thousands a year.

The hidden costs of renting an office: what to look out for

• Service charge – what’s included, how it’s calculated, and whether it can be capped
• Business rates – current rating, any appeal history, and likely cost
• Legal costs – sometimes the landlord wants you to cover theirs too
• Fit-out condition – is the space ready to use, or are you footing the bill for works?
• IT setup – are the lines already in? If not, delays = lost rent
• End-of-lease costs – restoration or “dilapidations” can be brutal unless clarified early

What works better than guessing?

A detailed “letter of offer” from your advisor makes all the difference. It sets out exactly what’s included, what’s negotiable, and who pays for what. This avoids nasty surprises later in the lease process – especially in legal review, where many assumptions can fall apart. It’s not just a formality – it’s your financial safety net.

What to do next (and what to avoid)

Don’t rely on guesswork or handshake deals. Get proper advice before you agree terms – ideally from someone who knows how to structure a detailed offer. And don’t wait for your solicitor to flag issues once the draft lease arrives. By then, it’s often too late to negotiate.

Final thought

Hidden costs aren’t always deliberate – but they can still be painful if you don’t know what to look for. And with conventional leases, where every item is separate, that risk is much higher than with an all-inclusive serviced office. The good news? Most of the big surprises are avoidable with the right advice and a clear offer letter. Taking the time to get the details sorted early will save you money, stress, and awkward surprises down the line.