Occupying an office space for running an organisation is an important decision as it defines the presentation and working flexibilities of the business. Many people these days, prefer well furnished and stylish places that give their office a good modern look. An office can be either leased or bought to start a business and carry out the operations. You can either rent or buy land, depending on your situation. When comparing leasing vs buying business space, it can be found that both have advantages and disadvantages as follows.
Advantages that come with leasing an office
Leasing is one of the popular options among businesses. In this arrangement, you pay monthly rent for the building or space. The advantages of leasing space are many from a lesser commitment to fewer responsibilities. A few of them as given below.
- Low financial commitment
Money is one of the factors affecting lease or buy decisions. With leasing, the expenses and financial commitment is low, which is very helpful to small businesses and entrepreneurs. You can deal with the landlord and set the rent payment issues. In the leasing contract, there are quite a few options for depositing the rent.
- Cutting down on maintenance costs
More often than not, owners will bear the maintenance costs that may come along the way. However, this is subject to change depending on the agreements in the contract. Therefore, the overall management of the building structure falls onto the owner and not the company.
You will have prime access to the property and won't have to spend a high amount to gain access to space. A few maintenance expenses like heaters and other equipment can be settled while deciding the contract and you can decide whether you would like to pay for those or not.
- Expanding is easy
When the business is booming, and the company needs more space, leasing gives you the option of moving out easily. This implies that one can shift without having to deal with a lengthy process and responsibilities. You can share your payments with the landlord according to the contract.
- Smart use of money
Renting a business space allows you to make smart use of the money saved. You can invest it in polishing the workplace to make work more efficient and comfortable. One of the best ways to achieve this is by employing a space solution expert like GXI Group, who can give you office layout options that suit your company and its goals.
Disadvantages of Leasing an office space
Although the pros may outweigh the cons, it is essential to explore the disadvantages of leasing an office when comparing lease vs buy land.
- Less Freedom
In case one would like to build a small storeroom beside the building or increase the number of plug points, they would have to run it by the owner. Therefore, a company would not be able to take independent decisions without having the consent of the owner.
- Hiking Rents
This is probably one of the biggest concerns that come with leasing. An owner could always increase the rent. This could cause further strain on the company's finances as they may struggle to pay rent.
Advantages of buying a business space
Buying a business space also has its own advantages as you will completely be in charge of the property and won't have to worry about causing damage or loss. Here are a few advantages to buying a business space.
- Financial gains
Although buying a building is expensive, in the long run. The gain could be from increasing property price, remortgaging etc. This compensation could come through with the fact that the remaining finances could go towards increasing salaries or paying pensions. In addition to this, there are tax deductions that come with buying property.
If you own the space, you can design and style it based on your requirements and taste. You won't have to worry about owing extra expenses to the landlord. With the help of a refurbishment service provider like GXI Group, you can customise your workspace according to your needs and vision without having a landlord to worry about.
Disadvantages of buying a space
- Huge Commitment
Buying property for business activities can be a big deal for smaller companies. One has to be careful not to bite more than they can chew. There is no going back when buying property. Moreover, the company themselves will have to pay for damages that occur to the building. This can have an impact on the finances to the finances, as well.
Therefore, when it comes to leasing vs buying business space, the choice depends on factors like the budget that is at hand, the type of bank loan attained and even the size of the business. Regardless of your choice, your office is complete only when furnished and designed appropriately. As such, GXI Group’s space planning, design, and fit out come in handy come in handy once you make a decision about your office space.