Library
Physical Office Management

Office & Admin Operations

(The "Who’s Going to Clean the Toilet?" List)

2.1 Physical Office Management

(Or: "How to avoid getting locked out of your own office because you didn’t read the fine print.")

What It’s All About:

"Your office isn’t just four walls—it’s a web of contracts, bills, and hidden costs that can strangle your startup if ignored."

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2.1.1 Rent Agreements

💡 Why It Matters:

• A bad lease can double your costs or get you evicted mid-growth.

• Pro Tip: Always negotiate 3 key clauses:

1. Lock-in period (Can’t leave early)

2. Rent escalation (Max 5–10% yearly)

3. Subletting rights (For future flexibility)

🔥 Horror Story:

A Bangalore startup signed a 5-year lease with 15% yearly rent hikes. When COVID hit, they were stuck paying ₹3L/month for an empty office.

Self-Assessment:

"Does your rent agreement have…"

✅ Security deposit capped at 6 months’ rent?

✅ No hidden ‘maintenance’ charges?

✅ Early exit clause (even if costly)?

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2.1.2 Electricity Bills & Maintenance

💡 Landmines to Avoid:

• Sub-metering: If sharing space, ensure bills are split by actual usage—not arbitrarily.

• Generator Costs: Some buildings charge ₹50/unit for backup power (daylight robbery).

• Pro Hack: Prepaid electricity meters prevent bill shocks.

Case Study:

A Delhi co-working space overcharged 20+ startups by tampering with shared meters. It took 6 months of legal notices to get refunds.

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2.1.3 Security Deposits

The Golden Rules:

1. Never pay more than 6 months’ rent as deposit.

2. Get receipts stating it’s refundable.

3. Photograph the office pre-move-in (or lose your deposit to fake "damage" claims).

🔥 Horror Story #2:

A Mumbai founder paid 12 months’ rent as deposit (₹18L). When exiting, the landlord deducted ₹15L for "repainting."

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2.1.4 Municipal Taxes

(The Silent Budget Killer)

• What? Property tax paid by landlords—but often passed to tenants illegally.

• How Much? Typically 10–20% of rent.

• Pro Move: Check local municipal website to verify actual tax due.

Scam Alert:

A Hyderabad landlord charged startups "double municipal tax" for 3 years—pocketing ₹25L extra.

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🛠️ Your Office Health Check

"Rate your readiness:"

Risk Area 😱 Disaster 🛠️ Needs Work 🛡️ Fort Knox

Rent Agreement Signed without reading Key terms negotiated Lawyer-vetted + future-proof

Electricity Random blackouts Sub-metered fairly Prepaid meters + solar backup

Security Deposit 12 months, no receipt 6 months, photographed Bank-guaranteed deposit

Municipal Taxes Paying blindly Verified with corporation Landlord absorbs cost

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🚨 Crisis Protocols

"When shit hits the fan:"

Scenario Immediate Action Long-Term Fix

Landlord demands 20% hike Serve notice citing agreement terms Move to co-working (no lock-in)

Electricity cut for non-payment Pay under protest + demand meter audit Install prepaid meter

Deposit not returned Send legal notice + tweet @CPM office Next time: Escrow account deposit

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📌 Pro Tips for Founders

1. Co-Working Spaces: Great for <20 teams—no deposits, no bills, no headaches.

2. Virtual Offices: Use for registrations (saves ₹50K+/year in rent).

3. Rent Negotiation: Offer longer lease = lower rent.

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🎯 Final Thought

"Your office is your castle. Either you control the moat, or you’ll pay ransom to cross it daily."