Choosing a new rental property for your business can become an overwhelming proposition. This is especially true if you do not know what you should look for in your rental office space.
Many business owners make the mistake of not selecting the ideal rental property and are forced to shift operations, employees, and infrastructure midway.
This is detrimental to a business’ interests. Ideally, an office space should be a stable location that can allow for great work over sustained periods. If you have to move every six months, you are jeopardizing your business and its employees.
We take help from Mark Brower, the head of Property Management in Mesa, AZ. We ask him about some tips business owners can use when renting a commercial property. We also ask him to shed light on the comparisons between renting and buying commercial properties.
- 1 Renting Versus Buying Commercial Property: What you should do?
- 2 List of the Top 5 Tips to Rent the Best Commercial Properties for your Business
- 3 The Bottom Line
Renting Versus Buying Commercial Property: What you should do?
According to Mark Brower, both renting and buying commercial properties come with their own set of pros and cons. While buying commercial property is done primarily with the intention of appreciation and investments, renting allows for greater flexibility and lower costs.
Mark Brower states that following the Coronavirus Pandemic, most businesses are looking to save on spending huge amounts of money on buying commercial properties.
Saving on the huge costs and investing the same in business operations is a decision most business owners are making in the aftermath of the pandemic. In such a scenario, renting commercial properties seem to be the worthy and rational option.
He also states that buying properties means that you will be responsible for the taxes, licenses, and other official regulations. This can add as an extra source of distraction that businesses need not suffer from. Renting is a far better way to proceed without taking too much responsibility.
List of the Top 5 Tips to Rent the Best Commercial Properties for your Business
1. Decide on the Nature of your Requirement-
Brower states that businesses need to first pay attention to the specific nature of their requirement. This means the number of employees you have, what kind of a business you are, and how much are you willing to invest. Businesses should also plan ahead in terms of growth. If you have fifty employees today, you might have sixty the next year. Hence, planning and deciding on the exact nature of your requirement is the first thing to do.
2. Location, Accessibility, and Availability-
While rental prices in cut-off areas might be lower, you need to select a property that is well-connected and located in some kind of a proper business district. You might have clients coming up to your office. Paying attention to transportation (public transport) is important for your employees to reach the office. If your office is situated in too far-flung areas, you will fail to attract the best talent for your business.
3. Budgeting and Extra Expenditures-
Just taking the rent into account is not a mistake that business owners should be making. You need to look at other things including maintenance costs, electricity charges, and other overheads that can add to your financial strain over a period. If you have to undertake some construction work, you are looking at a huge figure. Brower states that the actual rent is just part of the financial expenditure you are looking at.
4. Official Documentation and Paperwork-
The actual owner of a commercial property might be very vague on some considerations like- who should pay for the maintenance, repair costs, and so on. It is important that you go through the fine print of the agreement and raise issues about things that are not clear and transparent. This will allow you to be completely aware of where you stand in terms of your responsibilities with regard to the rented office space.
5. Take Help from an Expert Property Management Company-
You might be thinking that adding an intermediary in the entire process will only lead to extra costs. However, what you should take into account is that a credible property management company will act to defend your interests if something goes wrong. They will step in and hold the owner accountable for wrongdoings. You will also get to see better properties and help with the paperwork. Going solo is not a good idea when renting commercial properties.
The Bottom Line
By paying attention to the above-mentioned five tips, you can ensure that you are well-prepared to rent your next commercial property. Renting a commercial property might not be the easiest thing in the world. However, if you are following the basics, it rests assured that the only thing you will have to worry about and pay attention to is the business and its development. If you have any other questions that you would like our expert to answer, please feel free to list them in the comments section below.