Advantages of Renting Business Premises

benefits renting business premises
Spread the love

Small and medium business owners understand how buying a business space needs a lot of financial commitment. The problem is that most businesses are undercapitalized and cannot purchase the premises. Even when they can afford to buy, leasing is a better option rather than owning. It is because it requires less capital to lease.
The business owner can use the money saved to expand the business in other geographical areas or for research purposes. Rent expenses consume a lot of the monthly budget. Thus an entrepreneur has to be prepared to incur the cost. The following are benefits of renting premises instead of buying.

Freedom to Relocate

warehouse for rent

When an entrepreneur starts a business no matter how small it may be, they dream to grow big. Not owning the property means that you can move to another location or space when your lease expires. The business owner can move to a better part of the town. They can relocate to a place where it is convenient for employees or clients. They can lease a new site whereby it will accommodate more employees as the headcount grows.

Saves Some Money

Unless an entrepreneur signed whereby a landlord can increase rent the rent will be the same amount until the lease is over. Unlike a mortgage payment whereby interest rates rise depending on the economy. Paying a leasing deposit is low compared when buying the property. We have to contend that due to demand business premises are usually way expensive than any other type of rental.

The property also can depreciate thus a tenant cannot be affected. The cash saved can be used to employ more employees or increase the companies product line.

Fewer responsibilities

A landlord is responsible for maintenance of a property. They have to ensure electrical, heating systems and plumbing are in order. In the case of repainting the property owner has to do the job required. Renovations have to be carried regularly especially when a massive number of people are using the premises.

Helps in Tax Deductions

tax deductions

Rent or lease expense is treated as a business expense. It is deducted from a business owner taxable income thus paying less tax. It is because the rental income is treated as income tax paid by the property owner.

It’s Easier to Find

In most markets, there are more rentable spaces rather buildings for sale. It will take less time for an entrepreneur to find a leasing space rather than when buying a property. It also does not require any documents or a credit report for a person to lease a space. A person can move into a leasing space quickly rather than when buying a whole building.

Minimizes Losses

When a business fails, it will incur huge losses to the investors. The losses are less if the company leased a premise. They will just terminate the contract and close down the business. When owning a building, you have to sell it, and you may sell it below the price. It can take time before you sell the building thus still incurring expenses on an unused property.

After we have mentioned these advantages, if it convinced you to rent a business office or a warehouse, you can check out the website of these South Florida industrial real estate experts to see the best properties for rent in Miami, FL.