You often hear people talk about why it’s better to buy a commercial property, and they often focus on things like the freedom to develop the property the way they want and gaining equity in their investment. And it is true that there are a lot of upsides to buying instead of leasing or renting.
However, there are also some very strong reasons why leasing may be better. You really need to consider your individual situation to determine what is going to work the best for you and your company.
The owner does repairs
In many lease agreements, the owner still agrees to take on the cost of maintenance and repairs. This means that you can budget for your monthly rent payment and not have to worry about costs spiraling out of control. As an owner, you have the responsibility that if something goes wrong it will likely cost a lot of money to fix.
It gives your business flexibility
Your business may grow or shrink over the years, and you may need to increase the space you have or even cut back. If you buy a property, this means that you’re stuck, or you have to buy again. If you’re just leasing, you can simply pay until the end of the lease term and then move. Your business has more flexibility so that you can focus on what is best for the company.
There’s less risk
No matter what you decide to do, just make sure you know about your rights and the legal steps you will need to take.