10 Things to Check Before Signing a Coworking Agreement

A coworking agreement is usually six to ten pages and takes fifteen minutes to read. People sign it in three, because the tour went well and the coffee was good. Here is what to slow down for.

1. Lock in and notice period, which are not the same thing

Lock in is the minimum you have to pay for even if you leave. Notice is how much warning you must give afterwards. A six month lock in with a two month notice means the earliest you can actually be out is month eight, and you will pay for all of it.

Three to six months is normal for small teams. Ask for three. If you are taking ten seats or more, you have leverage to ask for one.

2. What happens to the deposit, and when

Get the refund timeline written in days, not "after settlement of dues". Thirty days from handover is reasonable, sixty is common, "within a reasonable period" is not acceptable. Also check what can be deducted: damage is fair, normal wear and tear is not, and a repainting charge on a floor you never painted is worth arguing about.

3. What the price actually includes

Ask for the inclusion list in writing, seat by seat. The usual suspects that turn out to be extra:

• Meeting room hours beyond the monthly credit, often ₹500 to ₹2,400 an hour
• Printing beyond a page count
• Car and two wheeler parking
• Air conditioning outside office hours, billed by the hour in most Grade A buildings
• Locker or storage
• Guest passes past a couple per month

4. GST on top

Office space is taxed at 18%. A ₹9,000 seat is ₹10,620 out of your account. If you are GST registered you claim it back, so what matters is that the operator invoices correctly with your GSTIN on it. If they cannot, that is 18% gone.

5. The escalation clause

Most agreements carry an annual increase, often 5% to 10%. On a twelve month term it may never bite. On a renewal it does. Ask what the increase was for existing members last year, not what the contract permits.

6. Can you add and drop seats?

This is the whole reason to be in a coworking space, and it is often quietly restricted. Check three things: how much notice to add a seat, whether the price for a new seat is your current rate or today's rate, and whether you can reduce seats at all mid term. Many agreements let you grow freely and shrink never.

7. Access hours and the guest policy

"24 by 7 access" often means the door opens but the air conditioning does not, or the pantry is shut, or security needs prior intimation for weekends. If your team works late or your engineers keep odd hours, test it: visit at 9pm before you sign.

Guest policy matters more than founders expect. If clients or candidates visit weekly, ask how visitors are handled and whether meeting rooms can be booked at short notice.

8. Internet, and what happens when it stops

Ask two questions. Is there a second line from a different provider, and does the agreement promise anything if the internet is down for a day. Most do not, but the answer tells you how seriously the operator takes it. For a fifteen person team a full day offline costs more than a month of rent.

9. Whether you can register your company there

Do not assume. Many operators do not allow their address to be used as a registered office, and among those that do, some charge extra and some will not support a GST physical verification. If you need the address for MCA or GST, get it in writing before you sign, along with the rent agreement, NOC and utility bill you will need to file.

10. The exit clause, read backwards

Read the agreement as though you are leaving in month four. What do you owe? Who signs off on handover? Is there a penalty for early exit beyond the lock in? Can the operator terminate on short notice, and what happens to your deposit if they do? Also check what happens if the operator loses the building, which happens more often than the tour suggests.

Two smaller things worth a minute

Which entity are you signing with. Sometimes it is not the brand on the door but a local franchisee, and that is who holds your deposit.

Insurance. The operator insures the building, not your laptops. If you have expensive equipment, that is your policy to take.

Before the tour ends

Sit at an empty desk for ten minutes at the time of day your team will actually be there. Listen. Check the mobile signal. Open a video call and see how the wifi holds. Walk to the washroom. You will learn more in those ten minutes than in the whole tour.

Then browse what else is nearby before you commit: coworking spaces and managed offices across the country.