Starting a business is a big step to take and it comes with a whole host of challenges. Many of these challenges are easier to face once you have some experience running a business, but for those who are just starting out, knowing as much as possible about the particular issue is one of the best things you can do.
This idea is also true when it comes to acquiring a business space. Actually getting property for a business can be one of the biggest decisions a small business owner will make when they are starting out, but is it better to buy property or to lease it?
Like most business decisions, the decision to buy or lease business property has its advantages and disadvantages. In large part, the type of situation you choose depends on a realistic evaluation of your business as it is and a reasonable projection of how your business will be in the future.
Purchasing business property
· Control of the property
Once you have decided that a particular piece of property is the right one for you business, purchasing that property outright will allow you to control how that property is used in relation to your business.
However, property owners may have to comply with any local zoning boards, property ordinances, etc.
In general, it is cheaper in the long run to own property than to lease it, but these long-term savings can only be taken advantage of if your company has the funds to purchase land right away.
Leasing business property
By leasing property, you have the ability to move your company with relative ease later on if you find another location that better suits your needs. Additionally, this allows you to find a space for your business if you cannot find an adequate location to purchase or if your business does not yet have the funds to purchase property.
When you own a piece of property, you are generally responsible for maintaining that property. However, if you lease property, the landlord is generally responsible for making sure that the property is maintained. This can allow business owners to focus more on the business than issues with the location.
Again, purchasing or leasing property for a business represents a large investment of both time and money and it should not be taken lightly. Fortunately for business owners, there are people who specialize in these matters. If you find yourself in a situation where you are looking into business property, it is suggested that you seek out the services of an experienced legal professional.