Top Reasons for Business Owners to Rent Office Space
Sooner or later, a business owner will have to decide whether they’re going to buy their own office space. This is often misinterpreted as the ‘next step forward’ – a logical advancement for any company which can afford to make it.
However, the truth is that plenty of thriving businesses continue to rent their office space, choosing never to buy at all. Here are just a few reasons why you should think about following their lead.
Lower Upfront Costs
The one great, looming, nail-biting problem associated with buying your own office space is the large investment of capital which is involved in doing so. Capital is normally better invested in the business itself rather than in the building in which it operates, and commercial mortgages will typically require you to stump up around 25% of the asking price, while still exposing you to possible increased interest rates in the future.
If that just doesn’t account for enough of your money, then you’ll be thrilled to remember that legal bills will also need to be paid. Of course, who doesn’t enjoy giving money to lawyers?
In contrast, renting an office involves very little in the way of upfront costs. The most you’ll normally be required to pay is a security deposit, but that expense won’t come close to the amount you’d need when buying. Also, that’s a deposit, not a payment, so you’re apt to get most of it back when you leave the building. There’s also the possibility of offsetting that cost through the rent-free periods which many office leases include at the start of longer contracts. The only thing better than low upfront cost is no upfront cost.
Ready to Go
Of course, cost is one thing, but effort is quite another. Even a business owner with money to burn is going to need to take time away from their schedule in order to oversee the fitting out of a newly purchased office space. Phone lines and computer points need to be installed, internet connections need to be sorted, furniture needs to be ordered, delivered, and arranged – even decorations need to be carried out.
Or, you could opt for a serviced lease which sets you up with a fully furnished office which can be moved into without delay. Commercial office spaces can come with a wide array of standard and optional features to ensure that they perfectly fit around your requirements. Need somewhere which is ready to go at the drop of a hat? Try renting. Even if you’re set upon infusing the space with your corporate identity, everything can be taken care of without it falling upon your own shoulders.
Greater Flexibility and Freedom
The reason you’ll be able to customise your space so easily is down to the flexibility offered by leases. These don’t come in just one set arrangement – you’ll be able to tailor the terms to meet your needs, whether that covers just basic equipment or an entire telecommunications infrastructure.
But that’s really just the tip of the iceberg when it comes to flexibility. Beyond the level of service which is provided, you’ll be able to choose between different contract types and select the exact amount of square footage which you’re after.
Most contracts are short-term, operating on a rolling basis. This allows for a tremendous amount of freedom in the future. If business is booming then you’ll be able to ask for more desk space or additional offices; if you need to downsize, you’ll simply need to adjust the amount of office space downwards.
This is a strong argument against the ‘freedom’ which you receive from buying your own property. You might be solely in charge of the way it is run, but you’ll either need to invest in a building with room to expand – in which case you’ll be overpaying for several years – or you’ll need to buy something perfectly suited to your current requirements – which may change quickly, for good or ill.
Having complete control over your own business premises might sound tempting, but it comes at the expense of complete responsibility, and that has a number of significant drawbacks.
Costs can never truly be fixed when it comes to your own commercial property. If anything needs to be repaired, that cost comes out of your own pocket. When you’re renting the property, any such problem is dealt with by the landlord, so you’re completely protected from the possibility of large, unforeseen bills.
This extends to the general maintenance of the building and its equipment. Cleaners, for example, which you would have had to hire and pay yourself, should be included as part of your contract. Contractors such as plumbers, electricians, and builders – when needed – will work for you without having to be paid by you.
The building will be thoroughly taken care of in order to ensure that everyone renting office space keeps renting office space. This means a modern, immaculate working environment for you and your employees to enjoy. You’ll find yourself in state of the art surroundings which are tirelessly maintained, and you won’t have to lift a finger yourself. Any problems? Just pick up the phone, report the difficulty, and don’t for one second concern yourself with the cost.
Included Facilities and Services
The ongoing incentives involved with renting don’t confine themselves to general maintenance. Receptionists, IT support teams, a mail service – all of these represent additional expenses which you’ll need to swallow when you buy your own property.
Rent from an established commercial office, and those personnel will usually be put at your disposal. Buildings will even typically include cafeterias and fitness centres, each one of which will be welcomed by your staff members.
When you rent office space, you can choose what you want, how long you want it for, and exactly what’s included. Any changes in those requirements, and you’re free to alter the contract or move elsewhere. In stark contrast, ownership ties you to one particular building, and to the associated costs of maintaining it.
Is it any wonder successful companies across the United Kingdom continue to rent instead of forcing themselves to buy?