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When you want to start a business, you should invest in an office space. Your customers and prospective customers will trust you more when they know you have a physical office space as opposed to when you don’t. Furthermore, you will need a place where your staff can work including to manufacture and store products. It is from this store that the products you sell will be dispatched even if you are a retailer or wholesaler for other companies.
When you want to get an office space, you will be confronted with 2 options: renting a place or buying a place. You can read about real estate companies that buy, build and rent out office spaces on BritainReviews when you want to buy or rent an office space. This article will discuss the pros and cons of buying office space and renting an office space.
Buying an office space
Buying an office space entails paying for place and acquiring ownership of the place. It could also mean purchasing a land and building the place yourself. Here are the pros and cons of buying an office space.
Pros of buying an office space
Some of the pros of buying an office space are discussed subsequently.
A permanent place to operate from
A major pro of buying an office space is that you will have a permanent place to operate from. There wouldn’t be a situation where after some time and people are already used to locating you at that location, you will have to leave. It is worthy of note that leaving the office space can sometimes be forced even if you are willing to renew the rent. The owner is at liberty to refuse the offer for renewal. You will be forced to start redirecting your customers to a different address.
No continuous regular payments
Another pro of renting an office space is that once you finish paying for the accommodation, it permanently becomes yours. You won’t have a recurrent expenditure that requires catering for rent. However, you should see landlord insurance services reviews to get a good insurance policy for your business office space.
Cons of buying an office space
Some of the cons of buying an office space are discussed subsequently.
Capital intensive
The major con of buying an office space is that it is pretty expensive. Every business owner will love to buy an office space if not that they can’t afford it.
Renting an office space
Renting or leasing an office space implies paying to use a space for some time, after which space will be returned to the owner. Here are the pros and cons of renting an office space
Pros of renting an office space
Some of the pros of renting office space are discussed below.
Affordability
One of the reasons why most business owners opt for renting office spaces is because it is affordable. Most business owners/businesses can’t afford the price of buying, hence, they opt for the renting option. The renting options make it easier to have space for your office.
Loss of building would reduce the burden of loss on the company
Since the building does not belong to the company, once they are not culpable in the reason for the loss of the building, it will not be part of the loss the company will suffer. This is in the event of loss of building to natural disasters or other forms of events where the company cannot be held responsible for purposely destroying the building or negligence.
Cons of renting an office space
Some of the cons of renting office space are discussed below.
Continuous payment for a property without hopes of gaining ownership
When you rent a property, you will continue to pay for it monthly, yearly or based on the period agreed without owning any stake in the building. Even if you stayed in the building for over 20 years and have paid the full worth of the building in rent, the smallest office in the building still won’t belong to your organization.