Many entrepreneurs are often faced with the question of renting or buying commercial space for their business. This dilemma is undoubtedly common even in a thriving industry such as commercial real estate in Florida.
If you choose to seek professional advice on this, a real estate agent may say that it really depends on your particular situation. Although in truth, when it comes to this vital business decision, there really isn’t a single answer. Needless to say, if you don’t have the financial resources to buy commercial real estate in Florida, then the choice becomes much easier.
Nonetheless, leasing commercial space can still be the smartest choice out of all your options. According to statistics, the majority of new business owners start out with a lease for their office space, as opposed to an outright purchase of commercial property. On top of that, a good number of business consultants recommend renting your workspace until your business starts running smoothly.
To help you make a decision on whether to rent or buy commercial real estate in Florida, try discovering the benefits of renting commercial space. Here are some of the benefits you would most likely get from a rental property.
A reduced number of bonds
The commercial real estate owner is the person responsible for security, maintenance, renovation and other property management matters. On your end, you will essentially have fewer responsibilities regarding the commercial space, which will leave you more time to focus on your business.
One of the obvious benefits of renting commercial real estate is the flexibility it offers. Once the lease is over, you can simply move to another commercial space that better suits your business, as well as your budget.
No mortgage payment
The freedom of a substantial mortgage allows you to free up spare cash and direct it where deemed necessary. This positive side is particularly advantageous for first-time business owners.
Although the landlord generally receives the tax credit, a fraction of the benefit may still be passed on to the Florida commercial real estate tenant in the form of a lower lease payment.
Less tax formalities
If you choose to rent commercial space for your business, your tax return will surely be easier to complete compared to the mountain of forms that building owners usually have to fill out.
Since the Florida commercial real estate market offers a wide range of selections, it is certainly possible to negotiate your way to a discounted rental price.
Buyers usually have to pay a deposit of around 20-25% of the total price. However, if you choose to rent commercial real estate in Florida, you only need to pay at least one or two months’ lease before moving in. This aspect of renting office space can be a real boon, especially for cash-strapped entrepreneurs.