It’s time to make the shift from landlord to Coworking Operator

When you make the crucial shift from landlord to operator, your business experience will be more personal and rewarding. Here are some things to think about as you make this step:

Coworking, shared office business models transform how we work and live because they can adapt to the needs of demand by offering flexibility and access to a community.

Today we are more in need of spaces that offer us more than just the ability to work, and co-working spaces have become one of the tools to achieve this. As coworking operators start up in specific areas, it is not only about offering affordable office space but also about providing a wide variety of services for community members, including facilities for work, learning or play.

Besides property managers and owners, there are also those who take on the management of this type of business. They want to be close and have a direct relationship with the final user. For this reason, the value chain is becoming shorter and shorter: we find property owners that have become operators ( Summit space , Cubispace, workjar ) .

if you are a mere rent collector, have no strategy or generate no value, you are out of business. And to generate value, you need to know the end user well.

Agreements between the landlord and the operator

Coworking can be classified according to their management model. In other words, according to the contractual relationship between the owner and operator:

Owner as operator:

  • One of the owners also operates the coworking business.
  • He has 100% control over the business, profits and losses.
  • Here is where the risk lies. If you do not know this sector, it could be a mess. The less you know, the more risky your investment will be.

Lease agreement:

  • The owner leases the asset to a third party.
  • The rent can be fixed or variable (with a guaranteed minimum rent).
  • The owner has no control over the business and only deals with the real estate business.
  • In the case of renting with variable income, the owner participates indirectly in the good performance of the business.
  • The FF&E (Furniture, Fixtures & Equipment) by property owner and OS&E (Operating Supplies & Equipment) investment is assumed by the tenant.

Management fee agreement:

  • The owner hires an operator with extensive knowledge of the industry to manage the coworking operations.
  • The hired operator receives a management fee as compensation.
  • The entire business (asset + coworking operations) belongs to the owner.
  • The owner has no control over the business.
  • The entire construction investment is made by the owner.
  • The risk is assumed by the owner.

Propques management agreement:

  • The owner hires Propques as a consultant with extensive knowledge and experience in the sector to develop the entire project and manage the coworking operations under the owner’s brand.
  • Propques transfers the know-how to the owner: in the third year, the owner starts to manage the business with a trained and experimented team as well as being handed the Operations Manual of the business.
  • Propques receives a management fee as compensation.
  • The entire business (asset + coworking operations) belongs to the owner.
  • The owner has control of the business from the third year.
  • The entire construction investment is made by the owner.

If you are an owner who wants to operate under your own brand and control your business 100% by minimizing risks, contact us. We offer integral service for developing your coworking from conceptualization to business implementation until the 3rd year. We operate the space for you until you learn to manage it, and we share with you all the know-how so that you continue to be a successful operator.

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