Benefits of LEASING VS. BUYING in New Jersey
When looking for new office space in New Jersey for your business, the first question you might ask yourself is whether you should rent or buy. There are pros and cons to both renting and buying, but especially for smaller or growing businesses, your best bet may be to lease office space. The main benefits of leasing New Jersey office space versus buying are the flexibility and adaptability, lower up-front costs, tax-deductions, and the property is managed for you.
Leasing offers flexibility: By renting your office space, you give your company the room it needs to grow. When five employees become fifty, you'll need to expand, or maybe even move entirely. Had you owned your own space, you would have been required to coordinate the sale of your current property, find a new location, acquire the new building, make renovations, and finally move into your new office space. All of this while balancing the business that is paying for the space.
Renting your New Jersey office space makes it easy to adapt to your changing needs. This is true for warehouse space as well as office space. Flexibility in the size and location of your space means flexibility in the products you carry and distribute. Expanding your line can be a matter of signing a new lease or expanding your current space. If you buy your space, you'll need to go through the process of selling or renting out your property and finding a new one that suits your needs.
Leasing costs less up front: Buying office space is a huge investment, especially in the New Jersey area. What's more, it's one that may leave you with more space and work than you need or want. With a monthly rent payment, your cost up front is significantly lower, saving you money to spend where you need it: on your business. Leasing you warehouse or office can cost less down the line, too. While your rent might increase if you find you need a larger space, expanding a property you own means a costly development and construction process that you'll either have to outsource or manage yourself.
Your rent is tax deductible: In most cases your monthly rent payment is tax deductible, saving you even more money. Compare that to owning your own property, where you'll actually owe additional taxes, and the decision to lease becomes much easier.
You don’t have to manage the property: Renting an office frees you from the responsibility of maintaining it. If something isn't working, you'll have a landlord or property manager to call and fix it for you. Plus, if you buy space you'll likely have more than you really need, and you might find that you've become a landlord yourself.
If you're looking to rent instead of buy a space for your business in New Jersey, it helps to keep these points in mind. Depending on your needs and business goals, you might find that renting is the perfect solution for you.
Want to learn more about the benefits of renting office space in New Jersey, or ready to start looking at property? Contact Ross Management Group today and we will help you with everything you need.