Renting Property to Get a Head Start in Business
As a new business, there are many decisions to make. And one is business premises – where is the best place to be located? What kind of business premises are the most suitable? Should you rent or buy?
As you make these decisions, you will be bombarded with pros and cons of renting and buying.
Rental property brings a whole raft of benefits, none more so that being able to get ahead in business. But why is renting workspace advantageous over buying?
Business mortgages, like mortgages to buy domestic properties, must be financed upfront, usually with a sizeable deposit. Depending on the state of your business finances, this deposit can be out of reach.
Renting a property may require some payment upfront as a ‘deposit’, but in the main, is far more achievable. In other words, you won’t need to tie up all your capital.
As much as you may want to own your own business premises, when it comes down to it, finding the perfect building in the right place at the right time is difficult. When the market is stagnant, as it often is, the alternative is to look for rental property.
And the alternatives are many. With the rental market, there is far more choice of properties within your budget.
As a new business, the potential for growth is enormous. For many start-ups, growth can happen fast and that means having planet of flexibility within your business space to grow.
If you bought a property, to physically grow your business you would need to sell it and buy somewhere new, all of which takes time. And that may be something you don’t have a lot of. In a rented space, you can rent a bigger unit or take on a series of smaller units for greater flexibility.
Buying a property means you are responsible for its upkeep and maintenance. That means you must sort out blocked toilets and unsafe electrics etc.
But with rental properties, for an annual service charge, all this is done for you. When something goes awry, you put a call in to maintenance and the problem is repaired.
When renting a business premises, there is also less risk. Unlike a property you own, the value cannot decrease.
For modern rental properties, serviced and maintained and in a great location, take a look at RTC Business Park.