Should you Rent or Buy your Office Space?
When it comes to office space, there is always a debate as to whether one should buy or rent. Renting is a choice that stands out to be more favourable as it’s a flexible option. That being said, one can never predict the future of a business.
Things to Consider when Choosing Office Space
Businesses grow in stages. The appropriate office space will change as your business does. For example, start-up companies are in their first growth phase. With a handful of employees, a big space is not necessary. As you grow, you get to learn what your office requirements and preferences are in accordance to your business.
Things to consider:
Does your business see a future that involves relocation, significant expansion or down-sizing? These are questions that cannot be answered in the initial stages. As you grow with your business you will find ways of finding a more suited space.
- Financial Freedom
Buying property is a massive commitment and in these trying economic times, financial freedom is not a common occurrence.
Main Advantages of Renting Office Space
- Prime Business Location
- Freeing up Working Capital
- Renting allows you to respond more closely to opportunities in your market.
- Financial Sense
- Renting will fit easily into your monthly or annual budget. This allows for transaction duty and your tax is deductible.
- Renting provides cheaper legal procedures.
Choose Less Commitment
Concentrate more on your business by not committing to a single property. Leasing is a medium commitment, to which you choose your months occupancy. Take into consideration that renting also allows for easier credit qualification, whilst buying property requires a very strong credit rating.
Keep in Mind…
All in all, renting is an option that is advantageous to start-up companies. You never know what direction your business will take and renting allows you to get a feel before making a big commitment. In these trying times, our economy doesn’t allow for elaborate expenses. Office leasing gives business owners a way to ease themselves into the property market, whilst having maximum time to concentrate on their business at hand