LEASING VS. BUYING
When looking for a new space for your business, the first question you might ask yourself is whether you should rent or buy. There are pros and cons to both options, but especially for smaller or growing businesses, your best bet may be to lease office space.
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. Renting 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. 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 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 your space 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 versus buy space for your business, it helps to keep these points in mind. Depending on your needs, you might find that renting is the perfect solution for you.