Choosing the right office location isn’t a decision to be taken lightly. The space that your staff work in will have an impact on their mood, performance and subsequently the company’s profitability, so it is important to choose an appropriate location while keeping staff in mind. Beyond location, deciding on renting vs buying office space is a crucial decision.
Another huge factor in your process is deciding whether to buy or rent an office space. Whatever decision you make, there are pros and cons to each option. If you find the perfect office location that’s only available to rent when you were looking to buy, then you may find yourself in a slight dilemma.
Selecting an option that works best for you can be an overwhelming decision, but these tips below should help you find it easier to make the right decision.
The Financial Side of Things
Renting is certainly less of a financial commitment. There is no down payment when leasing office space, so you will only need to pay a refundable deposit prior to being given access to the property. In the long term, however, renting a property can begin to feel as if you’re throwing your money down the drain. No matter how many payments you make, the property is never yours to keep, and you’re limited to what you can do with the space.
Meanwhile, choosing to purchase your office space is a huge financial commitment. You would be required to pay a substantial down payment, and the process would certainly take a lot longer. With that being said, buying your office space comes with its perks. Providing you’re confident that you’ll be using your office for quite some time, owning your own space can be a great investment. Property increases in price over time, so when you come to sell, you will make a profit from it.
Buying a property is more time-consuming than renting, however, you can receive help from a buying agent like Buyers Agent Brisbane which will help to speed the process up.
Repairs and Maintenance
The great thing about renting a property is that most repairs and maintenance are covered by the landlord. As your office space isn’t yours to keep, then it’s in your landlord’s best interest to make sure that everything is how it should be.
Owning your own property has its benefits, but one of the biggest downfalls is the fact that renovations or issues with the building would have to be paid for by you. You can’t always control how your staff and clients are going to take care of the office space, so this is certainly something to bear in mind.
Long Term vs Short Term
One thing to consider when considering renting vs buying office space is how long you’re planning on being there. If you only plan on using your office space for a year or two, then renting is the easier, quicker, and more affordable option.
If, however, you picture your office space being around in years to come, then buying would be a smart move. With renting, landlords often increase the cost each time the lease contract is renewed, meaning you could end up paying rent that is over the budget you first created.
These and other important business decisions can determine your success and profitability.
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