Own or Rent a Commercial Property? The Dilemma for Many Small Business Owners
All business owners want to grow their businesses. One of the common problem faced by many entrepreneurs is that their businesses have outgrown the commercial space they currently have. Though it can be a great problem, however, it is a cause of headaches for many business owners nevertheless.
If your current commercial property lease is about to expire and is pondering if you should be renting or getting your own business space, then you will want to pay attention to this article…
Renting is expensive
Many SME owners fail to recognise that monthly rentals are actually more expensive than the commercial property loan repayments they have to make when they get their own commercial property space.
Although the upfront cost of buying the business property can be high, however in the long term, the total cost of rental fees is definitely higher than the cost of purchase in the long term.
Getting your own property provides many benefits to an SME. Not only can you expect to repay back your commercial property loan in predictable monthly instalments, but the interest costs incurred from the loan can also be lower than the rental costs in some cases.
Like buying any property, getting your own commercial property shouldn’t be done in a hasty manner. Carefully weigh the pros & cons of buying and renting a business space and evaluate which options can provide you with more savings over time.
Ownership gives you more freedom & growth
Your SME business is unique so are it’s business needs and requirements.
The issue when it comes to renting a commercial property or office space is that it kind of hinder an SME to adapt quickly to meet the growing and ever-changing needs of a business.
For example, a logistics company might need extra storage space to hold onto new inventory so as to prepare for the festive season in a few months time. Or a digital marketing business might need to expand its team to include mobile app development for its clients. The possibilities are endless.
Renting a business space can be limiting your business growth while owning your own business property can allow you all the flexibility your business requires.