Most of the business establishments these days are rented. It doesn’t matter how many years the owner plans to keep their business operating, they still choose not to buy the building or the property. Why is that?
One of the most difficult jobs of a businessman or businesswoman is in terms of decision-making. By and by you are making decisions that can be small or big ones. You may ask for some advice from people, but in the end, you still have the final word to say.
Choosing the location for your business is one difficult thing to decide upon. Another is to either buy the property or just keep renting it.
For you to have an idea and make your own decision to whether you should buy or rent a property, consider the advantages and disadvantages of renting vs. buying that business location:
Buying a Property:
Owning your own building for your business makes you have a stable location for your trade. Owning your own property will lessen the worry of being displaced or if the rent may increase in the next years. What if the rent is raised ahead of to what you can afford each month? If in case you have decided to buy the property by that year, you may be surprised of how the price has increased.
If you own the property, there is a fixed price for you in paying for the property. This will make it easier for you to manage your expenses and maintain a budget every month and year.
Owning the property may earn you tax deductions which is a good plus for every business owner. You may also get assistance with regards to legal business and you may get exemptions being the property owner.
If in case you are not using the property anymore, you can rent it out for other business owners to use and you can earn a profit from it.
The disadvantage of owning the property is in case you decide to move to another country. You will then need time to sell the property so you can move which takes a long wait.
If you decide to let go of the property and get into another business venture, you will have to sell the property first before you can finally move out.
If you own the property, it makes you limit your decisions when it comes to moving because you have to think about selling the location which is difficult.
In the end, it all depends on the business owner. If you are pretty adventurous when it comes to business ventures and likes to change your ideas from time to time, renting is a lot better than buying the property. If you like to move a lot and often like to see what business opportunities are there in other places, then you may stick to renting.
If it is a family business and you want to develop it with your family in the coming generations, then owning the property is recommended so you do not have to pay for the rental each month for many years.