Office Space: Renting VS Buying

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:

  • Relocation

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
    • One of the biggest advantages of renting office space, is that it allows you the freedom of prime business locations. Renting office space in leading business locations, allows you to give your business an advantage. This immediately gives your business a good image.
  • 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

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