With the economy fluctuating, it can be hard to tell whether it’s better for your business to
buy or lease office space. There are many factors outside of your control, like interest rates, consumer buying power, population levels in your area and so much more.
There are things you can control, and decisions you can make for yourself when it comes to buying or leasing office space. Let’s take a look at 5 reasons it’s better to lease office space, and contact us when you’re ready to get into the St. Cloud area!
1. No Downpayment
When you buy property, you’ll need a downpayment of anywhere between 10-30%. But when you lease, you’ll likely pay just a deposit of one month’s rent and possibly a one-time broker fee. A lease allows you to use that down payment cash as an investment in your business, putting it into working capital or an expansion of your services.
One of the beautiful things about a lease is that you can deduct the payments from your taxes. Other rental expenses can also be deducted, saving you money when March rolls around.
3. No Responsibility
When you choose to lease office space, your landlord should be responsible for repairs and maintenance. Depending on how you negotiate, they may agree to pay for improvements as well.
Usually, a tenant is only responsible for keeping the carpets and interior spaces clean, but your lease will spell it out.
In comparison, when you purchase a space you are your own landlord, and need to pay for everything out of pocket, do it yourself or hire someone to do it.
4. Better Visibility
Usually property management companies have multiple properties available in high-traffic, high-visibility and high-end areas. Standalone property in these places would take quite a lot of money to purchase, so being able to lease in those areas can be a bargain. You often won’t even be able to find property for sale in some of the most desired places in your city.
5. More Flexibility
If your business is young or in a building phase, you may have considerable flux in the number of people you employ, the amount of space you need, the amenities you want and even the location you need to be in. Buying a property ties you down for a long time, whereas leasing usually gets you a one year contract, giving you the flexibility to move when you need to.
Contact us when you’re ready to lease office space in the St. Cloud area!