These days the mix of businesses renting and buying their commercial property is perhaps more balanced than many years before. With so many different types of business spaces available, it is indeed a variable market whereby both renting and purchasing thrive in the business world.
However, both types have their advantages and disadvantages and what’s right for one business may not always be the most appropriate decision for another company.
If you find yourself at a crossroads and unsure as to which method is best for you and your business, here is a quick look at the many pros and cons of either renting or buying your workspace.
Renting Your Business Premises
- Easier to find new and convenient locations.
- Cheaper than buying.
- More flexibility involved meaning you can choose your lease types and lengths.
- No considerable amount of capital required to tie up.
- A binding contract will offer protection on your lease.
- May have to pay out a small premium to buy your
- There can be clauses that prevent you getting out earlier.
- You might be responsible for maintaining and repairing the building.
- Essential equipment such as IT and telecoms will more than likely not be included.
- You could find your interior layout limited, with a lack of room for movement in implementing any desired changes.
Buying Your Business Premises
- You could resell at a profit after a time, allowing you to move to bigger premises.
- You get to choose your own
- You can stay as long as you wish.
- Your building will hopefully increase in value over time.
- You can rent out some of your space if required.
- Along with purchasing comes a variety of other costs including fees, surveys and set up
- You will need to ensure you can meet your monthly repayments, otherwise, risk losing your property
- Any changes or modifications may require planning consent.
- You will have to arrange your own building and contents insurance.