As a business owner, the chances are you often peep at what other companies are doing to see how you measure up. It’s normal to look at successful enterprises to see how you can follow suit. You may have noticed that, surprisingly, many of the most successful companies with the savviest business owners choose to rent offices instead of buying. What is the reason for that, and is that the right decision for you?

Renting Vs. Buying an Office

So, what’s the difference between renting and buying an office? Renting means coming to a legal agreement with a landlord, and that agreement involves making regular payments to lease the space. On the other hand, purchasing an office means you own the space outright. Many think buying an office is the more desirable option, but that is not necessarily the case. Read on to learn why so many savvy business owners rent offices instead of buying.

For Scalability

Businesses are not stationary – they grow, shrink, and evolve, and sometimes that means requiring more or less space. Owning an office makes moving very difficult. However, renting an office allows for more effortless scalability; if you need to downsize, you can do so without having to sell.

Adaptability is crucial for businesses. If you’re a small business renting a cozy office space in a quiet town, you might have the goal of renting an office space in a big city down the line. You might not be able to afford it right away, but when you do, it helps not to be tied down to another, smaller office space. An office space to rent in London is especially desirable, as it allows for further expansion. Even if you can’t afford a London office yet, keeping your options open is a good idea.

Saving Money

Savvy business owners know how to manage their finances. Their rational decision-making means they don’t jump into risky investments like commercial property ownage; instead, they often choose to rent a space so they don’t have to pay a large upfront sum. On top of that, intelligent business owners take into account that lease payments can be tax deductible, and more tax relief means more money.

To Keep Focused on Their Business

Owning a commercial property comes with a lot of headaches. It’s not just about coming up with the upfront cost; it’s also about property management. When you’ve got a business to run, you don’t want to have to deal with burst pipes, faulty electrics, or garden maintenance! That’s why renting an office is often more desirable. The landlord can take care of managing the property while you get to use the space as your office base. Plus, many office rentals come with building services such as cleaning and visitor management, alleviating even more responsibility.

You might think that most savvy business owners also own the office they work from, but that is not the case. Many choose to rent instead of buy due to the saved costs, scalability, and reduced responsibility.

Image credit: Alesia Kazantceva via Unsplash

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