One of the biggest quandaries you may face if you are planning to launch a new business is whether you should buy or rent a property to serve as its base. Each option has its own benefits and disadvantages.
If you are keen to rent, there are a number of things you need to bear in mind before signing on the dotted line.
Read on for a concise but informative guide to renting a business property that will hopefully help you avoid any stumbling blocks in your quest for a new HQ.
Why Renting Is A Good Idea
There are several advantages to renting. For one thing, it does not require as much upfront capital as buying, which means you can use more of your initial investment for other business-related expenses.
Another thing, renting a business venue means you will be unaffected by rises in interest rates or a sudden fall in property value. You also won’t have to worry so much about maintenance, as some responsibilities will fall to the landlord.
Where To Look For A Rental Property
There are various avenues you can pursue when it comes to locating the ideal rental property for your business.
You can contact commercial real estate agents directly and ask them to find some suitable premises for you to view. Always view several, even if you come back to the first one in the end; this will give you a good idea of what’s available in your price range.
You can also look out for advertisements in local newspapers, magazines, or online.
Types Of Agreement
Once you have found a property that seems perfect for your venture, it’s time to consider the rental agreement you sign up for. The two most common options available are leases and licenses.
Leasing: if you’re feeling confident that you would like to rent a particular property on a long-term basis, then a lease is the recommended agreement. They can vary in length from a couple of years to more than 20. When it comes to the exact terms of your agreement, remember that various aspects can be negotiated – from how often you pay rent to what kind of service charges the landlord can include.
Licenses: For shorter rental periods, you may want to opt for a license. The benefit of a license is the flexibility it imparts – however, it is also a much more precarious arrangement, which is something to strongly bear in mind before signing any papers.
Getting Insured
You may already be familiar with the various types of insurance you need to run a business. But did you know you can also get business renters insurance to cover your leased property? This insurance policy can protect you against various mishaps including fire damage, lawsuits, and even loss of income due to damage sustained by the property.
Cover All Your Bases
This concise guide covers the main areas you need to focus on when renting a business property. However, you should also do further extensive research before signing on the dotted line to make sure that the property you decide to take on is right for you – and that the agreement is fair and mutually beneficial for you and the property owner.
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