Last Updated on April 21, 2024 by Umer Malik
Buying or renting business properties can be a tough decision to make. While some businesses might choose to lease business premises, others might find buying to be the better option. This is so because buying the property provides you with more flexibility and freedom. But before you decide on buying or renting, there are a number of factors to be considered beforehand.
Your finances are an important factor that has a major impact on the decision you make. If you’re thinking along the lines of taking a loan for your investment, you should get in touch with loan officers recruited by professional mortgage recruiter. They’ll guide you well about all the options you can choose from. While finances are one of the factors, there are other aspects to consider as well.
Research Thoroughly
Conducting proper research about the area you choose is vital. As for the location of the property you are viewing, it is essential to look into its long-term predictions. That way you’ll know if there’s anything that may decrease or increase property value in the future. Your company’s overall capital can be negatively impacted if the value of your commercial property declines. Hence, the time spent researching thoroughly is absolutely necessary in terms of benefits in the long run.
Choose Location Carefully
Choosing the perfect location for your business setup is as important as choosing a residential property. Depending upon your type of business, your location should be central, making it readily accessible for customers. Moreover, this factor even plays a big role when hiring employees. Even the best talent acquisition best practices might not work to recruit employees if travel costs are high. Consider opting for a location that has good transport links so that the travel cost does not become an issue for the employees you choose. However, if your business deals with clients remotely, choosing a location outside of town may be far more cost-effective.
Decide if you Want to Buy or Rent
The bigger and foremost decision is to decide if you’re looking to buy certain premises or rent them. If your business is relatively new, opting to lease on a short-term basis might be more beneficial to you in restructuring your lease in the future. Furthermore, leasing involves less capital in comparison to buying, therefore if you ever plan on relocating, you’ll have flexibility.
On the other hand, buying property allows you to repair and manage the building whenever you want to. Moreover, upon selling the building in the future, you can make a profit which allows you to make the property an additional stream of revenue.
Check for Transport Options
Apart from selecting a location with good transport links, consider a location that has a parking space. This serves as a valuable asset not only for the employees but for the clients as well. Traveling to the office might be more convenient if your property is near public transport facilities.
Be Flexible
It is essential that you look for premises that are flexible. Your business is bound to expand and change over the years. Hence choosing premises that can be modified according to your business is crucial. But you might not have this option altogether due to the type of commercial property you select. Before purchasing or leasing, it is better to check the property deeds for any restrictions to changes in property.
Make a Budget
Buying property for your business is never cheap. Therefore, you should check beforehand if you have the finances for it or any extra charges you might incur. Buying new furniture is one factor that makes the cost variable and should be taken into consideration when budgeting. To avoid any problems along the way, you might want to consider keeping some extra money in the bank.
Survey the Property
Before making a purchase, get the property surveyed by professionals to check for any problems that may arise. When spending a hefty amount on the property, make sure you hire people for a thorough and professional survey instead of a basic one.
Consider Legalities
When choosing a business property, there are certain legal aspects to consider like health, planning permission, safety and fire regulations, accessibility, insurance, and licenses. So, whether you plan to buy or lease, get advice from a solicitor.
Conclusion
As per the size and type of your business, you can easily decide whether you should buy premises or rent them. Taking all of the above factors into consideration is guaranteed to help you find the best possible location and building that fulfills all your business requirements. Think of yourself as your customer and choose an area from their point of view.
