5 Benefits of Renting Business Premises
Buying business premises is a big financial commitment. And finances is the key issue with most small and medium sized businesses. However, according to SLB investments, in Houston, a warehouse for lease is a better option than buying the space, since it ties up less capital. Business owners can use the money saved for business development and expansion to new geographies or new offerings instead. Renting can give the flexibility of relocating easily as well. However, for a small business owner, rent will consume a large part of their monthly budget. They have to stay prepared for it beforehand. Here’s a look at some of the primary benefits a business can gain by choosing to rent warehouse space.
5 Main Advantages of Renting Business Space
- More Choices for Business Space
It is seen in most markets that there are more leasable commercial sites available than buildings for sale. Plus, the leasing process takes less time than purchasing. It allows you to move your business more quickly. Moreover, in most cases, obtaining a lease does not require a credit report, which makes qualifying for a lease easier.
- Flexibility of Relocation
Renting business property provides more flexibility for your business as it grows. Since you are not locked into property ownership, you get the option to relocate once the lease ends. Leasing gives you the opportunity to try out an area of town to determine whether it is a convenient location for your clients and staff. After the lease ends, you and the premises provider can negotiate any aspect of the lease, if you both want to renew it.
- Financial Benefit to your Business
Upfront costs for leasing premises are often relatively low. However, in many cases, you may have to provide a refundable deposit. But all these expenses will still be far less than buying the premises. This will free up cash that could be used elsewhere in the business. You are not exposed to interest rate rises, although your rent may rise periodically as a result of rent reviews. But any drop in property value will not affect you.
- Fewer Responsibilities for the Maintenance of Rented Property
Many providers of warehouse space for rent in Houston make sure that when you take possession of the premises, your space will be renovated and even professionally cleaned. They will also make sure that all electrical, plumbing, A/C and heating systems are all in good working condition. In short, you get space where the maintenance is not your problem.
- Tax Deductions
Each of your lease payments is a business expense. This expense can be deducted from your taxable income, thereby lowering your tax payments. You should know that rental income is subject to income tax paid by the property owner.
Buying a building adds to your initial costs substantially more than leasing space. It also adds to your responsibility of financial management, repairs and maintenance. Most importantly, the location of a purchased property might lose its significance over the years. All these factors make warehouse space for lease a much better choice for small and medium sized businesses.