At some point, you’re going to have to make the decision to either buy your commercial property for your business, or to continue renting. It’s the inevitable conundrum of almost every business owner. So: what are the advantages and disadvantages? Is it right for you and your business? Here are some things you should know.
It is true that on paper, buying commercial property is more expensive in the short term. Either you personally or your business will need to be financially established enough to be able to afford real estate payments – that will far exceed those of rent payments. It is also true, however, that owning property is more financially advantageous in the long term. Not only does it come with new freedoms related to ownership, but it also creates a financial safety net for if the business falls on hard times. But of course, it will take a greatly increased cost to get to that point. So, start preparing now!
Once owner, every responsibility of upkeep will fall to you – not only to preserve appearances for your employees, but to preserve the monetary worth of the property itself. Everything from plumbing to the electrical system to the parking lot will need to be supervised and checked regularly. It is essential that you familiarize yourself with a basic understanding of each aspect of property maintenance, or that you hire a professional to do so for you. For example, knowing that asphalt is ideal for a parking lot because of its low cost and quick installation time can help you greatly.
Knowing When to Hire a Professional
There are many aspects of purchasing and owning commercial property that you may want to let a professional deal with, and not only the maintenance. Exactly what you will do yourself and what you will have someone else do is dependent on factors like the size of the property, the number of employees, your personal experience and knowledge within the field of real estate, etc. You may even want to let a professional deal with the actual purchase of the house, or with other administrative aspects.
Buying commercial property is a big leap, but it’s an important one – it can grant you many advantages and is a sign that your business has stepped it up a notch. By jumping through the proper hoops of preparation, you will not only know what decision is best, but also the best way to carry it out.
Check out this article on how your personal life can get in the way of your business!