Property Leasing

One big reason to lease instead of buy your property is that the upfront cost of doing so is relatively less. Then over the course of time you also pay less than you would if you bought it. Much of the time the seller of the property will give you a better price to begin with if you lease it. After all; your current stream of cash is of the utmost importance, especially in the first few years. Going with the leasing concept is a crucial factor in doing this. With a purchase you have to contend with a down payment of a mortgage. When you lease you do not have this.

Along these lines you should also consider that your company is not yet established enough to receive a good credit rating; and, you may not be able to support a mortgage. Plus mortgage lenders might hesitate to grant your company credit. However; you will likely get a favorable decision from the property owner on whether or not to lease the parcel to you.

A second factor to consider is one you probably have not thought of: do you want the maintenance responsibilities that come with owning your commercial space? Examples can be things like repairing the roof or the heating/cooling systems. What about electrical or plumbing problems or general maintenance of those things? When you lease your property there is always a superintendent or a building staff member to take care of all of that for you. Then there are the common outdoor areas that need attention; like window cleaning, parking and pathway maintenance. If you live where there is snow, who is going to clear it out of the parking lot or shovel it off the paths?

A third factor to think of when considering leasing or buying is the location. Perhaps you have not yet decided on a permanent residence for your business. You are not certain you like your current choices. Maybe the real estate values for this particular area are declining. OR, maybe you aren’t sure if you want to stay in your chosen town or city yet. If you buy your property you are stuck with it unless you want to go through the lengthy and difficult process of eventually selling it. When you lease, you prevent most of these problems from occurring.