If you are a business owner, you may have leased your commercial space instead of buying the whole building. You probably chose this option because you don’t have large amounts of money lying around for property purchases, nor do you have a printing press in your basement for printing money. You have made an excellent choice! For those entrepreneurs that are on the fence about leasing business space, there are three top reasons why leasing is a viable alternative to purchasing entire properties.
It Abides with Healthy Cash Flow
To start with, the initial cash outlay for leasing is much less than when buying the property. New business owners probably don’t have the money for the down payment needed for the sales transaction. Also, they might not have a sufficient credit history by which a credit report would be based on. With leasing, you will have to put down a deposit on whatever commercial space that you decide on. Disbursing funds for a deposit instead of a more costly down payment will save you money in the long run, as it will improve your company’s cash flow.
You’ll Have Building Choices Galore
Another top reason for leasing business space is you will have more building choices. Available properties that can be leased are much more plentiful than there are buildings for sale. You could spend your time looking for a building to buy, but that would take you away from the business that you’re trying to expand, which is definitely counter-productive. Since your business will need your constant attention, you may want to take the shortest path to achieving your goal of securing a location by leasing a commercial space. The faster you nail down the much-needed site, the faster your company can move in without too much disruption.
Maintenance & Repairs May Be Taken Care of For You
The third top reason to lease the spot that you’ve chosen for your business is that depending on your lease terms, you might not have to take care of the maintenance and repairs. These expensive disbursements might fall to the building owner. This would be great for you since you don’t have the time to look for a skilled contractor to take care of whatever repairs or maintenance issues that may come up.
The decision to lease your new commercial space should be based on all the advantages that you would gain for the lease’s duration, and not on what a real estate broker or your friends may tell you. Your keen business sense can aid you when you’re trying to go in the right direction.