Why Should You Rent An Office Instead Of Purchasing One?
Even ignoring the current (and we believe temporary) shift to working from home, the trend of business moving away from purchasing costly offices to a more flexible way of renting them was already apparent. Now more businesses are finding that having a costly and restrictive office setup is no longer the right option. So, rather than purchasing a commercial property, companies are turning to renting offices spaces instead.
If your business isn’t quite sure whether buying property or renting space is the best choice, then this article may be of help. We’ll take a look at why renting may be the cost-effective solution you’re looking for.
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Rentals Save Money
Renting an office space can save your business quite a bit. For one thing, your capital isn’t all invested in the property. Then consider how expensive it can be to buy office furniture, fittings, equipment, and more for a purchased office.
On the other hand, renting can save your business money. There’s no need to make a huge investment in the property or business furniture and equipment. These are usually supplied by the office facility manager. This means the company has more money to take advantage of opportunities when they come. This can lead to more business, new clients, and more.
Rent a Smaller Space
Commercial properties are at an all-time high these days. So, renting a small space may be the ideal option over buying an office property. For instance, if you and your employees are working from home most of the time, then why have a huge, empty office space sitting there? It’s a waste of money. Even if you use the empty office for meetings and team projects, it’s still sitting empty most of the time. This means you have to pay utilities and other expenses for an unused office space.
On the other hand, renting a smaller office space will fill the gap between the need to work remotely, yet still, have an office space to work from. This way, you’ll have an office space for those times you need to work with clients or the team. But the company will only be paying the rent and nothing more, even when the space is unused.
When you purchase a commercial office space, you take on a huge responsibility. There are individual utilities to pay, which usually include gas & electric, water, and more. Then you’re also responsible for all maintenance of the property, along with cleaning services. These can be pretty expensive, especially considering the space is empty with most everyone working remotely.
What does this mean for the business? You have to track several monthly bills, and then deal with the fluctuating costs each month. Maybe water usage will be higher for one month. Or you could face higher energy bills to keep the office space warm or cool. These can take a bite out your budget, as well as make budgeting more difficult.
In addition, if something breaks in the office, who will fix it? You will be responsible for repairs, not to speak of necessary on-going maintenance. These types of expenses are also difficult to budget for in advance, especially if you’re a startup or a small business.
However, with an office rental, you can usually find an office management facility that provides a flexible, all-inclusive lease. The rental fee covers everything, which is why it’s called “all-inclusive.” With an all-inclusive lease, you only pay the rent. That’s it. In some cases, you may be charged extra for certain services. But in most cases, the rent covers it all.
This means you won’t have to deal with fluctuating energy or utility costs. The company will also not have to worry about shelling out for maintenance, repairs, or even cleaning! These are all included in the monthly fee.
What’s more, with a flexible lease, you won’t have to worry about selling a commercial property, which can take time and be expensive. It also means your business has the chance to scale up or down as needed. If times are great and you need more space, just speak with your landlord.
In most cases, they have additional space, which you can easily rent and move into very quickly. When things slow down and you would rather have a small space (which means lower rent), then this is also possible. Moving is easy and fast, with low downtime or hassle.
You have a huge amount of flexibility when it comes to the rental lease and the space you need.
In addition, a flexible lease means you can rent the office short- or long-term, depending on your company’s needs. This is another great reason to rent an office, over buying one. When you buy an office property, you’re stuck there until the place can be sold. That’s not easy when the company needs to make the move to a new office.
With a rental office space, you can move when it’s necessary, and often within the same business centre. You just move from one office to the next. It’s that simple. You’re not stuck in one spot. The business has more flexibility, which also helps your bottom line.
You no longer have to stay in one place, even when it would be better to move. With a rented office space, you’ll have the flexibility to do what’s needed, rather than waiting, then dealing with the purchasing process.
Here, at Wizu, we have rental offices available, affordably priced. We offer a flexible, all-inclusive lease, which helps your company save money. There’s no need to buy office furniture or equipment. Plus, we can have everything set up and ready for you on moving day! So, contact us today, and let us know how we can help you. We’re looking forward to working with you!
What are the main benefits of renting an office instead of buying one?
Renting offers flexibility, cost-effectiveness, reduced financial risk, and access to enhanced amenities and services, making it an attractive option for businesses seeking to establish a physical presence without the burdens of ownership.
Is renting office space a suitable option for startups and small businesses?
Yes, renting is particularly well-suited for startups and small businesses with limited capital, as it requires lower initial investment and offers greater flexibility to adapt to changing circumstances.
How does renting facilitate business growth and expansion?
Renting allows businesses to scale their office space according to their evolving needs, accommodating growth, and facilitating expansion without the constraints of property ownership.
What are the environmental benefits of renting office space?
Renting promotes sustainable business practices by encouraging resource efficiency, minimising environmental impact, and supporting eco-friendly initiatives implemented by landlords.
Can renting office space help businesses mitigate risk in uncertain markets?
Yes, renting provides a safeguard against market uncertainty and economic downturns by offering flexibility in leasing arrangements and reducing exposure to fluctuations in property values.
Are there networking opportunities associated with renting office space?
Yes, renting office space in shared coworking environments or business centers facilitates networking opportunities, allowing businesses to forge connections, foster collaborations, and gain insights from diverse professionals.
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