What Suits You, Renting Or Buying Office Space?
Many people ask our property advisors at RightDeed.com whether it will suit them to buy an office place or to rent it. The answer to this question is not the same all the time as it solely depends upon the conditions you are facing. Sometimes it suits you to have an office on rent while in most cases it will be feasible to own it. Based on all such answers delivered by our experts off and on, we have brought for you a detailed report on its pros and cons. We hope that it will be most beneficial for those readers who are yet making up their minds whether to own an office or get it on rent. Whenever a person starts a new business that requires to have office space, there are two options:
Either he can rent an office space or can buy one.
However it is not quiet easy to decide which one will suit him until we have proper knowledge of his financial affairs as well as the business statistics of the place where he is going to establish his new office. Each piece of land has its own set of pros and cons from business point of view depending on the fact that which condition is most important to you and your business.
Pros Of Renting Office
The pros of renting an office place can be summed up as follows:
- If you are in search of a prime location, the chance is that you may get it on rent more easily rather than owning it. It will also be far more affordable on rent as prime locations are much more costly due to several reasons. The main reason being that most of the prime locations have been bought by investors in order to make money in the future. Hence, renting will get you the best location in most cases.
- The second most beneficial aspect of an office on rent is that thus your capital is not freezed in your property and you can easily utilize, you can use the extra money to grow your business.
- An office on rent will also save many expenditures of yours especially in terms of maintenance and the time that it consumes. Is is the responsibility of your landlord to hire a sweeper, white wash, window cleaning etc.
Cons of Renting Office Space
- The biggest con is that you have no guarantees of any sort. Since you are on rent and do not own the place, so you will have to worry that about the rent each month and also that your rent can increase with the passage of time.
- The main fault for a businessman is that when the lease agreement will expire, his landlord will have the option of not to renew it and thus he will lose a hot business spot. This will in fact be very very bad for his business.
Pros and Cons of Buying Your Office Space
After we have discussed the pros and cons of an office on rent it is very important to do the same with a place you own. First of all we would discuss the pros of your own office:
- You can also earn an extra income if there there is some extra space on the front of your shop or office, you can rent it out for additional income.
- If you own your business place then it also provides you an opportunity of tax deductions on your property tax.
- If you buy an office space then it will also act for you as a future investment plan especially when you are old enough and not able to work anymore. If you decide to sell your place at that stage, you will be able to make some money which will probably become a retirement or old age benefit fund.
Now let us discuss the cons if you buy an office:
First of all it may get expensive for you at the initial stages but in the long run as your business is established, it will suit you.
Along with that you would have to manage a handsome amount for the down payment and other costs which may seem too much costly.
In some cases it may not prove to be feasible for your newly established business as a large portion of your capital will get freezed in buying the property and you won’t have much left behind to run the business with.
As it is clear from the above discussion that there are pros and cons of both renting and buying a business place, it depends upon your choice and funds that which one option you choose.
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May 9, 2018 AT 12:39 PM
i personally preferred not to acquire the space but use it on rent, you can invest that same money and get more returns instead.
June 8, 2018 AT 11:53 AM
agree with you
June 8, 2018 AT 11:37 AM
for small offices its ok to buy but renting I guess is feasible than purchasing a place for big office