How to identify the most advantageous rental for your company

Renting is always more advantageous, because it offers more flexibility and freedom when it comes to relocating your business when needed. Also, many still have their dilemmas when it comes to selecting a rental facility or another, because they still have issues to discern between the crucial aspects that must be taken into account and less significant aspects. But below we have more guidance in terms of how to identify the most advantageous rental for your type of business and why you should always rent and not buy your businesses’ premises.

The economics of leasing Vs. buying

As we mentioned in the first paragraph, leasing a business facility is more advantageous than buying one, the first reason is that when leasing this type of property, the upfront payment is lower than it would be if you were to purchase one.

• is the main variable to take into account, especially in the first years of activity, until your business stabilizes itself. If you take into account the current cash flow, you will shortly realize that when leasing a property, you may as well have to only pay the initial deposit, which is a more stable option than buying.
• You won’t have to deal with maintenance duties. This is yet another important reason for which you should opt for a lease, instead of buying your businesses’ premises. Maintenance issues are usually handled by the landlord, in the case of leased properties and this cuts some headaches from your part. Examples of maintenance duties that you would rather not handle are roof maintenance, plumbing maintenance, the maintenance of the HVAC system, maintenance of the electric part. When drawing a line, all these are not only difficult to handle, but also expensive. So, if you aim to cut some of the expenses associated with this, a lease is just perfect. Selecting the perfect facility for your needs shouldn’t be complicated, given the fact that plenty of professionals, such as Walton Robinson, are handling with success and a high degree of professionalism such matters.
• Preserve your mobility. Another advantage offered by lease properties for business purposes is that you can maintain your mobility. If you come to a conclusion that the market is no longer meeting your expectations and business profile, you can do a market research and decide where to relocate your business in no time.
• A mortgage may not be the most suitable option for your company. Not all companies have the needed credit scores to invest in a business establishment. This leaves them with the lease option. However, in spite of the popular opinion that this option is somehow limiting, many find it more beneficial.

What are the standard commercial lease provisions?

Being familiar with the regular terms and provisions for commercial lease properties is maybe one of the most important aspects you should take into consideration. This way, you will be able to select the most advantageous solution for your real estate needs. Needless to say, there are multiple options where to pick from.

• Gross lease. This may be one of the most popular options when it comes to a commercial lease. This type of contract means that the tenant pays the rent, while the landlord is managing the taxes, maintenance expenses, and insurance. However, the tenant-associated expenses (the monthly lease, usually) is adjusted yearly in this case. It still remains the most popular type of lease.
• Net lease. This type of lease is also popular amongst business owners. In this type of lease, the tenant is paying the rent and the taxes associated with it. There is a double net lease, in which the tenant is also paying part of the insurance that comes for the proportion rented by them. Also, a type of lease that applies to larger businesses is the triple net lease, in which there appear some additional expenses associated with maintenance interventions.
• . In this type of lease, the tenant pays a fixed amount as rent, over a fixed amount of time. Small business owners seem to appreciate the most this type of lease because it doesn’t expose them to various risks. This will protect them from increasing rental costs in the future, but it also comes with a severe downside: when the lease expires, the landlord may decide to raise the rent quite drastically, if the tenant decides that they want to remain there, especially if your business seems to grow. This might force you to relocate, case in which your business might be damaged on the long run.
• Step lease. A step lease means that your rent will grow in value at pre-established times in the future. This type of lease will protect both the tenant and the landlord against unexpected raises. The landlord will feel protected against unexpected maintenance or tax costs that grow, while the tenant will have their peace of mind knowing how much they will be paying, for how long. However, before agreeing to a lease like this, you must carefully assess if the rises are reasonable and you can cover those without issues. If you have issues with crunching those numbers, ask a financial advisor and see what their opinion is.

These are only some of the lease types a business owner can select from. Before making a decision, make sure to research your options well, and create a list of advantages and disadvantages of each type. Then corroborate the data with your particular situation and needs, and only after that make a decision. Keep in mind that there are plenty of real estate directories, which might prove incredible tools in the process of selecting a great property. With a continuously increasing number of properties in their portfolios, these directories might prove themselves the solution that you need. And always remember to consult a financial advisor before making any decision of this kind. It will influence greatly the outcome.