Serviced offices: minimum terms and deposits
Serviced offices are taken on a licence rather than a lease, which is why the commitment is short: terms of three, six and twelve months are standard, and month-to-month is available at a premium. The security is normally one to two months of the monthly fee held as a deposit, rather than the three to six months bank guarantee a commercial lease would demand. Notice to leave is typically one to three months and is the term most often missed, because it runs from the end of the notice period rather than the end of the licence.
- Legal form
- A licence to occupy, not a lease.
- Common terms
- 3, 6 and 12 months. Month-to-month at a premium.
- Security
- Usually 1–2 months held as a deposit.
- Bank guarantee
- Rarely required, unlike a commercial lease.
- Notice to leave
- Typically 1–3 months, in writing.
- Fitout / make good
- None — the suite is returned as it was found.
Why the commitment is short
A serviced office is granted as a licence to occupy a suite, not a lease of premises. That distinction is the reason the whole product behaves differently: there is no registered interest in the land, no make good obligation, no fitout to amortise, and therefore no need for the operator to tie you in for five years to recover their capital.
It also means the protections that attach to a lease do not attach here. A licence can carry relocation rights allowing the operator to move you to an equivalent suite, and it is worth reading that clause rather than assuming the suite you inspect is the suite you keep.
What deposit you should expect
The standard security is one to two months of the monthly fee, paid on signing and refunded after you leave, less anything owing. This is materially lighter than a commercial lease, where three to six months of base rent plus GST held as a bank guarantee is the norm and involves your bank, a fee, and cash tied up for the term.
Longer terms and larger suites sometimes attract a larger deposit, and a newly incorporated entity or a business without an Australian trading history may be asked for more. If the deposit quoted is out of line with the term, it is a negotiable point.
Notice, renewal and the trap in between
The clause that catches people is notice. A twelve-month licence with three months notice does not end at twelve months by default — you have to give notice, and if you give it late the licence rolls. Diarise the notice date on the day you sign, not the expiry date.
On renewal, rates are normally reviewed rather than held. Operators would generally rather retain a good occupier than re-let a suite, so a renewal is a negotiation, and knowing what comparable suites are being quoted at in the same building is the whole of your leverage.
Common questions
What is the minimum term for a serviced office in Australia?
Do I need a bank guarantee for a serviced office?
Is a serviced office a lease?
How much notice do I have to give to leave a serviced office?
General information only. This guide explains how office leasing usually works in Australia. It is not legal, financial or tax advice, it does not take account of your circumstances, and lease terms and legislation change. Get advice on your own lease before you sign it.
Rather have someone read the market for you?
Tell our concierge your brief once — size, suburbs, budget — and get a shortlist of best-fit offices with live pricing within hours. Free for tenants, always.