Finding a new "home" for a small business
Category News
While many people have been doing their corporate jobs from home since the onset of Covid-19, many others who lost their jobs due to the pandemic have been working hard at building up their own small businesses - to the point where they now need more space than the spare bedroom or the garage.
So now the question for many of these entrepreneurs will be whether to rent additional space to house the business or to buy a separate property to allow for growth going forward.
Of course location and price will be the major concerns in either case, but frankly, renting will be the best choice for most new businesses, for the following reasons:
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The financial institutions will usually require a very substantial deposit in order to approve a loan to purchase a property to house a small business. This could be as much as 50% of the purchase price, and that could put the business in a difficult position with regard to working capital.
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Ownership means the business will not only have to generate enough revenue to pay a monthly bond instalment, but also to cover property taxes and insurance, maintenance and security costs. The monthly rental payable for similar premises is likely to be much less than this total, although the water, electricity and internet bills are likely to be about the same.
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Renting means the small business owner will not need to be distracted by or spend valuable time having to organise or monitor any repair work or maintenance that needs to be done. This will be the responsibility of the landlord or the managing agent.
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Renting also means the small business can easily be moved to a new location if it needs to be closer to its customers or suppliers - or if the owner decides for any reason to move home.
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Renting will enable the small business to easily move to bigger premises if it grows more quickly than expected.
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Alternatively, renting will make it much easier and less costly for the owner to move the business back to the garage if it is affected by an economic slowdown or other adverse circumstances and does not do as well as expected.
Deal with a reputable rental agency and get access to quality rental properties, whatever your requirements. Chat to an experienced Chas Everitt rental agent today.
Author: Chas Everitt