Serviced Office Contracts Explained: Licences, Terms, Deposits and Notice
Serviced Office Contracts Explained: Licences, Terms, Deposits and Notice
One of the biggest attractions of a serviced office is flexibility. You can move in quickly, grow or shrink as you need, and avoid being locked into a long commercial lease. But a flexible agreement is still an agreement. Knowing what you’re signing protects your business and avoids surprises later.
This guide explains how serviced office contracts work, the key terms you’ll see, and what to check before you commit.
This is general information, not legal advice. If you’re unsure about any agreement, speak to a solicitor.
Licence vs lease: what’s the difference?
Most serviced offices are provided under a licence agreement, not a lease. The difference matters.
| Licence (serviced office) | Lease (traditional office) | |
|---|---|---|
| What you get | Permission to use an office and shared facilities | An interest in the property itself |
| Typical length | Monthly to a few years | Often 3–10 years |
| Setting up | Short agreement, quick to sign | Heads of terms, solicitors, negotiation |
| Moving in | Days or weeks | Often months, plus fit-out |
| Bills | One all-inclusive fee | Rent, service charge, rates, utilities and more |
| Repairs and maintenance | Provider’s responsibility | Often yours |
| Leaving | Give notice as agreed | Break clauses, dilapidations, possible penalties |
A licence gives you less legal protection than a lease (for example, no security of tenure). In return, it gives you much more flexibility and far less admin.
The key terms in a serviced office agreement
Term (length of agreement)
This is how long you’re committing for. Many providers offer anything from a rolling monthly agreement to 12, 24 or 36 months. Longer terms usually bring a lower monthly price. At The Serviced Office Company, agreements start from 3 months, and a 12-month agreement currently comes with two months free (terms apply).
Monthly fee
This is your all-inclusive price. Check exactly what it covers: rent, business rates, utilities, broadband, cleaning, furniture, reception and kitchen facilities are typical inclusions. Ask whether meeting rooms, phone answering, printing or parking are extra. Read our guide to business rates on serviced offices.
Deposit
Most providers take a refundable deposit, often equal to one or two months’ fees. It’s returned at the end of the agreement, less any agreed deductions.
Notice period
This is how much notice you must give to leave at the end of your term, or to end a rolling agreement. One to three months is common. Diarise it. Missing a notice deadline is the most common way businesses end up paying for space they don’t need.
Renewal and price reviews
Many agreements roll on automatically at the end of the term, sometimes at a new price. Check how renewals work and how much notice you’ll get of any increase.
Changing size
A good serviced office agreement lets you move to a larger (or smaller) office in the same building. Ask how upgrades work mid-term, and whether you can expand without restarting your agreement.
Use of the space
The licence will set out what you can and can’t do: opening hours, access, guests, deliveries, signage and so on. With 24-hour access at all our centres, most businesses find these rules light-touch.
Leaving the office
There are usually no dilapidations to worry about. You’ll be expected to leave the office as you found it, apart from normal wear and tear.
7 things to check before you sign
- What’s included in the monthly fee, and what isn’t
- The minimum term and any discount for committing longer
- The notice period, and the exact date you need to give it
- How renewals work and how price increases are handled
- The deposit amount and when it’s returned
- Flexibility to grow: can you move to a bigger office mid-term?
- Any one-off fees: set-up, IT, keys or exit cleaning
If a provider can’t give you clear written answers to all seven, that’s a red flag.
Frequently asked questions
Can I sign a serviced office agreement for just one month?
Many providers offer monthly agreements, though the monthly price is usually higher than on a longer term. Ask us about the options at each location.
Can I end my serviced office agreement early?
That depends on the agreement. Some include break options; others require you to pay to the end of the term. Check before you sign.
How quickly can I move in?
Because offices are already furnished and connected, you can often move in within days of signing.
Do I need a solicitor?
Most businesses don’t use one for a short licence agreement, but it’s sensible to take advice on longer commitments.
Flexible terms, clearly explained
We keep our agreements simple and transparent, with one all-inclusive monthly fee and no hidden extras. Explore our flexible serviced offices in Telford, Salford Quays and Canary Wharf, or get in touch and we’ll talk you through the terms.
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