Every business owner will have to go through the phase during the start where they have to choose between renting and buying the office space to accommodate their employees. The decision is very crucial as it can be a reason for the success or failure of a business. If the business owners fail to make a wise decision, it’s certain that they’ll have to see their business slumping.
Buying the space can be a right decision only when you are in a strong financial position. But if you are skating on a thin ice with respect to finance, you’ll have to forget the plan of buying. This is the reason because of which most of the business owners prefer renting office spaces over buying.
There are lots of other reasons for business owners to choose renting over buying. Below mentioned are a few.
1. Moderate Upfront Costs
This is one of the major problems associated with buying your own office space. As told above, finance is definitely a thing that the business owners should be concerned about. You can invest your capital on the business itself rather than putting it on a building that it operates. Along with that, you will also be responsible to pay all the legal bills. So you need to make sure that you are capable of making all those payments and bear the upfront cost if you are buying a space.
In contrast to that, renting an office space hasn’t got much to do with the upfront costs. Most commonly, you will have to make a security deposit, and the amount doesn’t even come closer to the amount you’ll need to buy a space. Also, it’s just the deposit and not the payment; you are most likely to get the amount back when you leave the building. Sometimes, you’ll also have a chance to offset the cost through rent-free periods.
2. Ready to Occupy
If cost is the first important thing, effort stands the next. Even the business owners with sound financial status will have to take some time out of their schedule to set the office space as they need. The basic phone lines, internet connection, and computer points to be installed comes the first; next comes the furniture to be ordered, delivered, arranged and decorated.
Instead of doing all these on your own, you can hire someone who can do it for you. But again, it’s the question of affordability; they do each and everything that has to be done, but on paying some amount. But if you are thinking of a place that is ready to occupy, you can try renting. You have wide variety of office space options that fit perfectly around your requirements.
3. Wide Range of Flexibility
Rented space provides you a wide range of flexibility that you can customize the space the way you want. They don’t just come in single set arrangement, but you’ll be able to tailor the terms as per your requirements; whether it’s just the basic equipment or the entire telecom infrastructure. However, it’s just the tip of an iceberg when it comes to flexibility; it provides you the service beyond the level and you’ll be able to choose the type of contract and also select the exact amount of space (sq. ft.) required.
Most of the contracts today are of short-term, and they operate on a rolling basis. This provides you a significant amount of freedom in the future. If your business seems to be booming, you can ask for some additional desk space. If you want to down size the company, you can simply adjust the amount of space downwards.
4. Lesser Responsibilities
Though it sounds tempting to have the complete control of your business premises, it comes at the expense of responsibility and also has significant drawbacks in it. Costs will never be truly fixed when it comes to commercial property of your own. When something has to be repaired, it’s you who has to spend. But when you rent a space, all such issues will be dealt by the landlord, so that you will be completely free from the large unforeseen bills.
Responsibilities extend to basic maintenance of the building and its equipment. For instance, cleaners whom you had to hire and pay yourself can be included in the contract when you rent a space. Also the contractors like electricians, plumbers and builders work for you without you having to pay them.
5. Included Facilities and Services
The incentives that are associated with renting don’t just restrict themselves to the general maintenance, but they are extend to IT support teams, receptionists and email services which you’ll have to swallow on buying a property. The rented commercial space will often include fitness centres and cafeterias as well, which is again an additional thing to be considered while buying a space.
When you rent a space, you are free to choose whatever you want, and also for how long you want it. And you are free to alter the contract and move elsewhere if you feel the need. But the ownership ties you up to a single building and also to the maintenance costs associated with the building. These are main reasons because of which the business owners these days prefer renting over buying.
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