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Why leasing your office space is beneficial

Starting up a business and having to worry about finding the perfect office, retail, or industrial space can be a huge weight on your shoulders. The decision to buy or lease the space shouldn’t be added stress, however. The choice is simple, leasing is the way to go and here is why:

Leasing your office space is the way to go if you are worried about having to make a down payment on the space or monthly mortgage payments. When you purchase a space for your business, you are typically expected to pay 25% of the purchase price as a down payment.  The 75% owed on the price of your new place is then mortgaged, requiring you to make regular payments in order to pay off the balance. If you lease your space instead of purchasing it, you no longer have to worry about that large down payment and large monthly payments. Leasing instead of purchasing will save you money because you are likely to have a smaller monthly rent payment than mortgage payment. Also, if you lease the space then you’ll only have to pay ahead a couple of months payments in order to move in, rather than 25% of the space’s purchase price.

Another benefit to leasing your office space is it will help when it comes to taxes. When it comes time to file for your taxes, you’ll have less paperwork to fill out for a leased property rather than a purchased property. Leasing your place will also give you a tax credit that may benefit your landlord leading to a reduced rent payment for you.  Finally, if your lease agreement is accurate according to the IRS, then your payments can be deductible as operating expenses.

A third reason why leasing your office space is beneficial is because you will have flexibility and possibly negotiability. If you sign a lease and are not happy with your space or environment after some time, you are under no obligation to stay once your lease is up. When your lease is up, you have the flexibility to sign another contract with your tenant or relocate to a space that will be more appropriate for your budget and your business. Not only that, but if there are plenty of office space leasing opportunities in that area, you may be able to negotiate a rent rate with your landlord.

A fourth reason why leasing your office space is the better path to travel, is to take a time-out and build up your business before committing to a space that will be permanent. If your business is up-and-coming, then leasing an office space will help you get on your feet and focus your time in building up your business. If you build up your business first, then purchasing a place in the future will be easier because you won’t have to worry about losing your business’s strength or customers. 

The last reason to why leasing your office space is better than purchasing is because you will have fewer responsibilities for maintaining the space. Depending on your lease agreement, your proprietor will be responsible for security, remodeling or redecorating, maintenance, and other concerns. Having someone else handle all these aspects will allow you more time to devote to your business and building it to its full potential.

If you have found these tips helpful and are ready to find the ideal space for your business, contact L.B. Andersen to get started.