Are you a bit confused the issue of renting and leasing? when people anticipate a new business, the first things that run through their minds are basically the location of the business, the capital to finance it and the office or structure to use.
Inasmuch as business establishment may seem a bit difficult, professional approach towards it can in so many ways broaden your chances of success. And your business planning and professional approach should undoubtedly start with your business space acquisition. Whether to rent it, or lease. In the real business sense, leasing up a business space profit a lot than when rented – research has it that the number business planning executives who lease business spaces on startup is directly proportional to the number of business in that locality. Which conclusively means that the percentage is on an increment.
One of the most advantageous reasons to lease an office space is to avoid additional mortgage liabilities. Having said that, some other reasons may include
Freedom
Everyone needs freedom of movement, same as your business enterprise and leasing will be a beneficial tool in this case. How? You can easily shift your office to another location of choice should you by-chance dislike your current location for one reason or the other. Business is business and sometimes reasons might fling up spontaneously, most especially start-up problems which might require immediate attention. And with a leased office space, you can easily act in response to the action.
Responsibilities are Less
With a leased office space, a business owner seems to have a reduced responsibilities over the office space, thus giving him chance to coordinate and focus on his business. In leased buildings, the landlord has the onus to take care of damages, risks and security, remodeling and any other required responsibility.
Cost Effective
When compared to rent, you’d come to realize that the cost of leasing an office space is a bit lower. More so, you can also negotiate the rate of an office on lease with the owner. Since you’re paying in bulk and not in bit as done in rental, chances are that any landlord ready for business will listen and concur to your proposal. This could also be easier with the presence of your lawyer or consultant on property acquisition.
No Mortgage
Mortgage is when you lend money either from an economic bank or commercial bank and pay interest on return. You won’t be paying that when you lease your office space, thus, you’d not be locked in a mortgage loan. This allows you to free up your cash and direct it to the right investment. To new business owners, this is however very helpful.
No Advance Monetary Commitment
Whether you’ve been asked to make a down payment for the rent of an office space while balancing afterwards via mortgage host or not. Chances are, you won’t experience this when planning a lease – you would only be required to pay approximately one or two months of the lease value before gaining access to the property.