Should I buy or rent a commercial property?
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Choosing to buy or rent your business premises is an important decision, especially as your premises may turn out to be your largest fixed asset.
Before you commit to one option, it's worth considering all the pros and cons regarding both buying and renting, as what suits one business won't always suit another.
The one main downside however is you'll need to come up with a considerable deposit, that could be used for other, more pressing business purposes. In addition, owning a building premise will make it far harder to relocate the business should you expand or decrease in size. Getting out of a rental agreement is a far easier task than selling premises or trying to find a tenant to take it over.
Renting
It generally suits new businesses to start off by renting a property as they may not be in an initially strong financial situation, or have an oppurtunity to borrow capital from another source.
It's also worth bearing in mind that buying requires an initial depost or down payment that could eat into valuable money you could be spending on stock, equipment and paying your employees wages.
Renting also provides total flexibility: the business can move to new premises at any time and with very short notice. As a start-up business you may find that renting commercial premises will be adequate until either the business grows, expansion is needed or an increase in finances enables you to purchase commercial premises.
Renting is advantageous as it also takes away any responsibility for things such as fixutres, fittings and site maintenance. As well as decoration and security costs, which can soon add up.
Finally rent rises are always a possibility, so it's worth negotiating with the landlord and checking how and when the rent will be reviewed, before you sign any lease agreements.
If you are looking for commerical property elsewhere, Reading office space could be the commerical property for you. It really is a growing business area. So, why not take a look if Warwrick isn't ticking all of your office space boxes?
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