To run a business, a number of people require premises depending on what business they run. However, for those who are reluctant to buy or use their own place, there is an option on this matter which is finding houses for rent as premises for the business. This is a solution for those who want to run a business with limited capital instead of buying business premises that require a large budget. Otherwise, there are things you should consider before renting premises for business.
The Advantages of Renting Premises
There are several advantages that you can get when you rent the premises instead of buying them.
- Reducing cost
By renting, we can reduce capital financing. But this applies if the houses for rent will only be designated as a place of business. It would be a different case if it is used for another purpose, such as for residence.
- You have a budget for business capital
To run a business, you require a number of capital such as for procurement of goods, costs for business completion, promotion costs, and so on. Therefore, the budget that would have been used to buy a place for business, you can add to those needs to open a larger scale business.
- Free maintenance cost
By renting, you will be free from maintenance costs if there is damage that is not caused by you as a tenant, such as a leaky roof and electricity. It includes the cost of annual taxes.
- Easily to move to another location
If things happen not to be desirable, such as the location is not suitable with the line of your business, or a bad environment, you are able not to extend renting the place. so you can find other houses for rent for premises.
The Disadvantages of Renting Premises
Besides the advantages, you need to get to know the disadvantages of your considerations.
- Burdening your business profit
Rental costs may be a burden that must be borne by your business. The cost must be obtained from the profits of operating results. So you must set aside some of the profits for the rental cost.
- Having risk for not continuing the rent
When you start a business and it is increasing well, the landlord has the right to stop the rental process if they need it for something else. This will harm you as someone who is struggling to develop the business.
- Having no benefit from property values
The property value increases over time. Here, you may lose the opportunity to make a profit. On the contrary, the cost of renting a place will increase every year. Then, your burden of costs you have to pay will increase as well as it happens.
- You cannot freely arrange the construction
You may not be free to design the room layout of houses for rent, because you need permission from the landlord in advance to do so. However, there is still a possibility you are not permitted if the change is too large.