Many business owners lease their commercial properties rather than purchasing them. While this makes sense in many cases, there are several advantages to owning your business property. For instance, owning a commercial property is a great way to invest in the future of your business, as you have control over how you use the property. Also, commercial property ownership presents you with opportunities for income and retirement planning.
Let’s explore some other attractive advantages of owning your business premises instead of leasing.
1. Fixed Mortgage Payments
When you find the right commercial investment property for sale, you won’t have to worry about rental rates increasing over the length of your lease. Instead, you’ll have a fixed mortgage payment to work into your budget. Rental rates have skyrocketed in recent months, so owning your commercial property is a smart move that will save you money in the long run.
2. Build Equity
Owning property enables you to build equity that you can use later to grow your business. When you lease, you’re only building equity for your landlord. Why help someone else get richer when you can take advantage of this benefit yourself?
3. Take More Control
When you rent from someone else, you are limited in the changes you can make to the property. You may not be able to create the atmosphere and image you’d like your customers to associate with your business.
When you own your commercial property, however, you have free reign to do as you see fit in terms of furnishings, décor, and renovations. With this free reign, you can create the type of look and feel you want for your employees and customers. Best of all, you’ll be able to make adjustments as your business evolves and grows over the years.
4. Invest in Your Future
If you own your commercial property, you can sell it later on to fund a nice retirement. Most properties increase in value over time, making them worth more in the future than their initial selling price. The difference can be quite a substantial amount, which will help make your retirement a cushy one.
5. Receive Rental Income
If the commercial property you buy has extra space you don’t need, you can rent that space out to a tenant, which will help offset the cost of insurance and maintenance. Remember that renting out your extra space makes you a landlord, which can be time-consuming and stressful in and of itself.
If you plan to lease out part of your commercial property, ensure you can balance managing your business with being a landlord. If it gets too much, you may need to consider hiring a property management company to handle the rental side of things. Of course, you’ll need to determine whether that fits within your budget before making any commitments.
6. Enjoy Tax Breaks
When you own commercial property, you are eligible for certain tax breaks. For example, you can deduct things like mortgage interest and property depreciation as well as equipment, furnishings, and improvements you make. Consult your financial advisor to ensure you pick up all the deductions you’re entitled to claim.
For some business owners, leasing a commercial property makes sense. For others, owning their commercial premises comes with a host of benefits that suits them better.
If you’re on the fence about whether to rent or buy a commercial property for your business, the advantages above might help you make the right choice.
Photo by Nastuh Abootalebi on Unsplash
