7 BASIC PRINCIPLES TO CHOOSE AN IDEAL RENTAL FACTORY

31 Tháng Bảy, 2021

With the development of the industry, the demand for production is increasing. Therefore, many business owners have chosen to look for a rental factory to serve the production process. 

This is an optimal solution to help enterprises expand their business model. Choosing to rent a factory or warehouse helps businesses both save costs and save time to stabilize operations. For a successful business project, business owners should understand the principles when choosing a rental factory.

Reasons why businesses should choose rental factory: 

Cost savings: 

When renting a factory or warehouse, businesses can save a lot of costs. Building a new factory requires a lot of time and money. Enterprises have to pay expenses such as land purchase, construction materials costs, infrastructure construction costs, maintenance costs, etc. 

Instead of having to spend a lot of money to build a new factory, the rental factory will maximize your business savings. You only have to pay the cost of renting, using support services and some other costs. This is the biggest advantage of renting a factory. 

A low-risk option: 

The rental factory is a safe first step that businesses should choose, avoiding many risks. For example, if businesses are in the process of building a new factory but have problems with funding, this is a difficult situation. At this time, businesses will have to both build factories and maintain construction progress because the amount of money is too large.

A rental factory is a low-risk option

A rental factory is a low-risk option

Thus, if you choose a rental factory, your business will have a safer start and can change its production model when facing difficulties.

Legal issues are resolved quickly: 

Legal is an issue that businesses need to ensure strict and complete implementation when they want to start production. Choosing a rental factory will optimize legal issues for businesses.

Factory leasing units often prepare legal documents for businesses. Before signing a contract, enterprises should read and learn all information. The rental unit will explain and help businesses. This will ensure benefits for new and less experienced businesses to step by step handle legal procedures.

Time savings: 

It will take a long time to complete a new factory or warehouse. This period can be from a few months to several years, depending on the scale and working progress. In addition, if there are legal or funding problems, construction time will be extended. As a result, new businesses cannot guarantee exactly the time to start production and operate the factory. 

Time savings

Time savings

On the other hand, if renting a factory, the above stages are solved. Enterprises do not need to raise too much capital. In particular, you can also set up machines, start production quickly and guarantee the working process. 

 

7 Basic principles to choose an ideal rental factory: 

Make sure the foundation of the factory is solid: 

With any factory building, the foundation still plays the most crucial role. Therefore, when choosing a rental factory, special attention should be paid to ensure the quality of this part.

Depending on the geological and location characteristics of each area, there is a suitable reclamation method. Make sure that the factory is built on hard ground that can withstand heavy loads. If the ground is soft and muddy, the foundation must be reinforced with steel piles and bored piles.

The rental factory has a solid foundation

The rental factory has a solid foundation

Location of the factory: 

An important point when choosing a factory or warehouse is its location. An ideal location for a factory requires good transport access, good connection to major roads, highways and other means of transports. Depending on your company’s business activities, you can choose the location of the factory, which is convenient to connect to airports, seaports or railways. Location will affect directly logistics methods and costs. 

If road conditions are poor, transportation can be difficult and you could waste avoidable costs, such as fuel consumption, time, and accidents.

Furthermore, location also affects the supply of high-quality labor. The supply and quality of labor depend a lot on the population and cultural level of the residents in that area. Highly qualified staff are often concentrated in industrial zones. Thus, when choosing a rental factory or warehouse, you should give priority to a place that can recruit talented workers with a reasonable salary. 

Location of the factory

Location of the factory

Cost for rental factory: 

The rental cost will depend on the type of lease, as well as the existing condition of the facilities, the location of the warehouse. According to experience, new constructions will have secured facilities, additional management and transportation services. Although it has a higher cost, it guarantees quality in the long term. 

Important points you should consider to get the right rental price:

  • Does the price to rent the factory include tax?
  • Does the rental cost include a factory management fee or a security fee?
  • Does the rental price include any additional support services? What are those services?

Area and type of lease: 

Depending on the needs of the business, to choose the type of renting by area or by the volume of goods. You should define your needs clearly before making a decision.

Besides, based on the form of business, production scale to choose the appropriate area and rental period.

Area and type of lease

Area and type of lease

The terms of the contract: 

In the factory lease contract, the business owner should note the following issues:

  • Deposit: When you rent a warehouse for a long time, you will usually have to deposit an amount equal to about 3 months or depending on the agreement. This amount should be clearly stated in the contract about the date of receipt of the deposit, the term of the deposit and the rental price of the following months.
  • There should be commitments to ensure absolute security and safety for goods during the rental period
  • The annual rate of increase in price for long-term rental.
  • Obligations and responsibilities of the two parties renting and leasing the warehouse.
  • Provisions for premature termination of contracts.
  • When there is a desire to change or add any terms in the warehouse lease contract, the parties will proceed to make an addendum to the contract and must be agreed upon by both parties.
The terms of the contract

The terms of the contract

Check building permits of the rental factory: 

Always check all documents in accordance with Vietnamese law when you have a plan to rent a factory. This helps you to know if the factory you choose is a legal construction or not. And is this factory involved in a land dispute? All to ensure that there are no problems during the rental of the factory.

In particular, you should check two important papers, including:

  • Documents proving the land use right of the factory owner
  • Broker’s ID if you hire through an intermediary

In fact, there have been many cases of scamming factory tenants. Therefore, you should carefully check and verify the relevant information or ask reputable companies to verify.

Infrastructure conditions: 

If the rental factory has enough facilities to meet the needs of the business, this can save costs for the business. 

Thus, before making a decision to rent a factory, you should consider the following characteristics:

  • Pay attention to the height of the ceiling compared to the floor, should choose factories with high ceilings and ventilation
  • Fully equipped with lights, electricity, drainage system, fire fighting,…
  • The thickness of the concrete floor should be suitable for each type of goods. Avoid renting factories with too thin concrete floors, while the volume of goods transported is too large.
  • The concrete floor should also be designed to be tall, to avoid the case that the floor is too low, prone to flooding in the rainy season
Infrastructure conditions

Infrastructure conditions

Choose rental factory consulted by VixCons:

Choosing factories for rent provided by VixCons will bring satisfaction to customers. Firstly, the factories are clearly checked on the relevant documents. 

Moreover, the factories provided by VixCons are also ideally located, able to connect to many commercial routes. In particular, the factories are suitable for many business lines and a variety of goods. 

Particularly, our factories guarantee prices that are right and worth their value. If you want to refer, here are some options for an ideal rental factory for your business or you want to build a new factory, you can refer Here

To sum up, this article has provided you 7 Basic principles to choose an ideal rental factory based on the actual experience of many companies. Hopefully, this information will help your business find the right factory or warehouse. 

 

If you are planning to rent a factory with the best rental price, please fill in our form below, or contact us directly with the information provided. 

Contact information: 

Hcm Office: No. 22 Nguyen Trung Ngan Str, Ben Nghe Ward,  District 1, HCM City, Vietnam

Tel: +84-28 668 06 166

Hanoi Office: 148 –D Yen Hoa Str, Cau Giay District, Hanoi, 100000, Vietnam.

Tel: +84-822 246 444

Central Branch: 18 Pham Kinh Vy Str, Vinh City, Nghe An Province, Vietnam

Tel: + 84 – 975 969 608                                            Email: info@vixcons.com

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