It’s no secret that many businesses choose to rent their premises, such as office space or workshops, rather than buying them. While both options have pros and cons, it could be more advantageous for your business to purchase its premises instead of renting it. You’re likely here today reading this article because you’re on the fence about whether you should buy or rent. You probably rent at the moment, but you’ve been wondering whether renting is a waste of time for your business.
Here’s why buying always trumps renting.
1. You Can Customize Your Premises
The trouble with renting commercial properties is you’re typically not allowed to do any significant design or structural changes. As you can imagine, that isn’t very helpful if you want to change your premises to accommodate changes to your business better.
Thankfully, when you own your business premises, you don’t need to worry about potentially breaking any lease contracts because you wanted to knock down a wall or put up a new one. As long as your changes comply with all building codes, you can do whatever you want.
2. You Don’t Have to Wait for Repairs
One bugbear that commercial tenants have is waiting for a long time before their landlords sent out professionals to carry out any building repairs. Sometimes, delays can disrupt business processes and can even pose health and safety problems.
As a building owner, you can have repairs carried out immediately. For example, if you have an electrical wiring fault, you can call a company like Caslec to fix it urgently, or if you’ve got a leaking water mains pipe, a plumber such as Alcyone can help.
3. You Can Take Advantage of New Technology
Imagine if you wanted to harness solar energy to power your building. If you rented your business premises, you will likely not be allowed to add PV (photovoltaic) cells to your roof. However, that’s possible when you own your premises.
You can also do things like install EV (electric vehicle) charging points outside for your employees and visitors to use when you own your building. Those are just two of many tech examples you can harness when you’re not renting your business base.
4. You Can Rent Out Any Unused Space
Sometimes business premises owners have space in their buildings or offices that lay dormant and seldom get used for anything. You could generate rental income from that unused space by renting it to people that want office or storage space, for example.
It’s also possible to rent the entire premises out to another business if your company wishes to relocate to a different building or area. However, if you’re renting, it’s not possible to rent out any unused space as it’s likely against the terms of your tenancy contract.
5. You Want to Invest Some Profit
Lastly, there’s no point putting any spare cash into a business savings account, for example, because interest rates are so low these days. One way to grow your profit is by investing it in business premises.
The value of your property will rise over time, and if you decide to sell and move your business elsewhere, you’ll reap the financial benefits of your investment.