It’s easy to assume that when you own a business you should purchase your commercial property, however renting is a great option too.
Renting has various benefits, such as providing more flexibility and reducing your responsibility of maintaining a property.
In this blog we’ll explore the benefits of renting a commercial property to help you decide whether this is the best option for you and your business.
So what are the benefits?
It provides flexibility
Renting provides more flexibility compared to buying a property, as short term contracts give you the opportunity to move into new buildings as your business grows and develops.
Along with the rising cost of living crisis and the impact that Covid-19 has had on businesses’ outlooks on running their company, renting has become a more popular option when it comes to commercial spaces. This is due to giving business owners the opportunity to move around when it suits them best, giving them the ability to navigate the current financial climate in a way that works for them.
It can have financial benefits
Renting is generally cheaper than buying a property, due to rent usually costing less than monthly mortgage payments. When renting you’re likely to pay a refundable deposit once the lease is signed and in some cases you may need to pay a premium to buy the lease. Even with these costs, it is likely that you will pay significantly less than if you were to purchase a property, giving you the financial freedom to use the money you’ve saved on other important parts of your business, like furnishing the property and paying for staff salaries.
Renting also means you’re not exposed to interest rates as much, but you may be subject to rent increases, making it important that you check how rent is reviewed before you sign your lease.
You won’t necessarily have any maintenance responsibilities
Depending on the terms in your rental agreement, you’re likely to have less maintenance responsibilities if you opt for renting. For example, as a tenant you may be responsible for making internal repairs, but external ones are left to the landlord to rectify.
You may also need to pay a service charge as a part of your agreement in relation to the maintenance of a shared property.
Opting to rent a commercial property poses less risk in comparison to purchasing a building as you’re less likely to face certain financial risks. These can include things like an increase in mortgage payments due to a rise in interest rates.
Renting could give you more of an opportunity to be in a prime location, as there may be more properties available if you choose to rent. This can help attract clients, customers and new employees, as our location will put you exactly where you need to be.
How can Millennium Point help you rent a commercial property?
Here at Millennium Point we have multiple spaces available that could be perfect for your next commercial property. Our spaces also come with various benefits such as ongoing support throughout your lease.
We’re also in a great location in the centre of Birmingham where you can easily access transport links like the motorway, multiple bus routes and all Birmingham train stations. This allows your staff, clients and customers to visit you with ease.
To discover more about the properties we have available and how they could work for you, get in touch with us today.