Mobile Menu

  • Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • Facebook
  • Instagram
  • Pinterest
  • Twitter

Home Jobs by MOM

Insights. Ideas. Improvements.

  • Lifestyle Insights
  • Business Ideas
  • Improving Family Life
  • Contact
  • Search
Buy or Rent Property

Should New Business Owners Buy Or Rent Property

You are here: Home / Business / Starting a Business / Should New Business Owners Buy Or Rent Property

January 8, 2020 //  by Home Jobs By Mom//  2 Comments

Note: This article contains affiliate links (hyperlinks, widgets, or through images), which means I receive compensation if you purchase a product through them. Regardless, I only recommend products or services I use personally and/or believe will add value to my readers. Visit my disclosure page for more information.



Tweet
Pin19
Share4
Share

Buy or Rent Property

When it comes to being a new business owner, many big decisions need to be made and questions that need to be asked. Questions like should new business owners buy or rent property are often on the list of things that business owners ask themselves.

Once you, as a new business owner, decide what your needs are for the right facility is when you can figure out whether or not you need to rent or buy property for your business.

To help you figure out which decision is right for you and your business, it is important to ask yourself a couple of questions to understand your needs.  You also need to go over and understand the pros and cons of both renting or buying.

When it comes to deciding on whether or not you should buy or rent property for your business, there are a couple of questions that you should ask yourself.

What is your cash flow situation?

Your cash flow situation is a huge part of the decision that you are making.  In the beginning stages of business, cash flow is often an issue.

You are spending money left and right on the best white wine gift sets and other marketing techniques to attract new customers.

Often because of this, a new business doesn’t have enough money on hand for the expenses of purchasing.  Here are just some of the costs that you should expect when purchasing property for your business.

  • Purchasing property often requires a significant outlay of money.  Either a considerable lump sum of cash for outright purchase or a substantial down payment on the mortgage.
  • Maintenance expenses.  Just like with homeownership, a business property owner is responsible for the maintenance of the building. What if the properties pipes freeze? Are you willing to contact a place to install a system to prevent the problem from happening again? When discussing business property maintenance, it’s important to remember that maintenance is vital.  A business property needs to be kept in good condition and good appearance. This is vital for customer satisfaction as well as for liability reasons. For this reason, a business needs to keep a large amount of cash on hand to cover these expenses.

Do you have enough time to focus on property ownership?


Not only is it imperative that you have enough cash flow on hand to purchase property for your business, but you also need to recognize whether you have enough time to focus on property ownership.

As mentioned, property ownership requires you to be responsible for the building’s maintenance and upkeep.

Do you have the time to be responsible for this and continue to grow your business?

Do you plan on staying in this location forever?

With the investment required to purchase property, you will want to make sure that you are planning to stay where you are for a considerable amount of time.

If you have asked yourself these questions and you are still on the fence whether renting or buying is right for you, check out this list of pros and cons to see if they help you make your decision.

Should New Business Owners Buy or Rent Property? Pros of Buying

Here are some of the advantages of a new business buying their own property.

You have control of your space.

This is ideal if you want to make major changes, additions, or renovations to your space. This is often not possible to do when you are a renter.

The long term cost is often cheaper.

While you often have significant cash outlay when you purchase property, the long term cost of ownership is usually less than that of a rental.  Your property value will grow, plus you won’t have to worry about rising rent over the years.

Location Location Location

You may want to be in a specific location, so purchasing the perfect property with the help of a professional is your best bet.

There is no guarantee that your ideal location will have rental property available. Alternatively, if you find a perfect place, you won’t have to worry about rental issues causing you to move.

Tax Savings

Property ownership often brings with it tax savings.  You may find that while you can’t deduct your monthly mortgage as you can your rent, there are tax savings that will add up over the years.

Should New Business Owners Buy or Rent Property?  Pros of Renting

Less Cash Outlay

When you rent a property for your new business, you will have less cash outlay than that of purchasing.

Typically you might have a security deposit, plus first rent payment, and that’s it.  That is often much, much less than the down payment needed for buying property.

No Maintenance Responsibility

As a renter, you are not responsible for the maintenance of the property.  That means that you don’t have to put out the time or money for property upkeep.

You Can Change Locations

If you feel that you might want to change locations at some point in time, then renting is the right choice for you.

Buy or Rent Property

Starting your business is a big deal, and once you have determined your needs as it relates to your business location and facility, you need to decide on whether or not to rent or to buy.  Whichever decision you make, this is a huge step in the growth of your business. Congratulations!

Are you a business owner? Do you rent your business facility, or did you buy it?

Home Jobs By Mom

Krystle Cook – the creator of Home Jobs by MOM – put her psychology degree on a shelf and dived into a pile of diapers and dishes instead. She is a wife and mother to two rambunctious boys, sweating it out in her Texas hometown. She loves cooking, DIY home projects, and family fun activities.

Tweet
Pin19
Share4
Share


Get the latest scoop on lifestyle + business tips, blogger opps, & giveaways to enter below!

* indicates required



Opt-In

Blogger Opps

Email Format

Powered by MailChimp

Home Jobs by Mom will use the information you provide on this form to be in touch with you and to provide updates and marketing. Please let us know all the ways you would like to hear from us:

You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at krystle@homejobsbymom.com. We will treat your information with respect. For more information about our privacy practices please visit our website. By clicking below, you agree that we may process your information in accordance with these terms.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp’s privacy practices here.


Related Posts

You may be interested in these posts from the same category.

personal finances

The Importance of Financial Planning in the Gig Economy

Struggling to Stay Organized_ 4 Hacks for a Chaos-Free Home Office

Struggling to Stay Organized? 4 Hacks for a Chaos-Free Home Office

planner

10 Sunday Tasks to Get Ready for the Upcoming Week

10 Influencer Marketing Stats That Will Help You Rock 2021

8-Reasons-You-Should-Use-Waterproof-Stickers-For-Your-Beauty-Business

8 Reasons You Should Use Waterproof Stickers For Your Beauty Business

14 Business Ideas You Can Do Once The Kids Start School

14 Business Ideas You Can Do Once The Kids Start School

Top Background Screening Software and Apps to Help With Recruitment

Top Background Screening Software and Apps to Help With Recruitment

Biggest-Signs-It’s-Time-to-Change-Jobs-or-Start-a-New-Career

Biggest Signs It’s Time to Change Jobs or Start a New Career

Switching-Career-Paths_-Why-More-Women-Should-Be-Entering-the-Tech-Industry

Switching Career Paths: Why More Women Should Be Entering the Tech Industry

3-Reasons-Women-Can-Thrive-in-the-Macho-Welding-World

3 Reasons Women Can Thrive in the Macho Welding World

What Are the Makings of a Successful Fashion Photographer

What Are the Makings of a Successful Fashion Photographer

Career Advancement And Children

How to Crush the Competition and Boost Your Online Store Sales

Previous Post: «i dont like to eat ants and picky eater Getting Your Picky Eater To Try New Foods #KidLit #PictureBook
Next Post: Update Your Home and Give It Some Life »

Reader Interactions

Comments

  1. Edna Williams

    March 18, 2020 at 4:14 am

    Many questions are imperative to consider when making this decision! Thanks for this post!

    Reply
    • Home Jobs By Mom

      April 15, 2020 at 8:45 am

      There are a lot of important decisions to take into account when it comes to owning a business

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recipe Rating




This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Welcome!

Get a look into a mom's inkling into this crazy thing called life.
Read More…

Giveaways to Enter

Water Pitcher with Affinity Filtration Technology
.
23 Days Left
Winning Moves Games Bundle
.
Lots-of-Games-For-Valentines-Giveaway-800x80018 Days Left
The Casagrandes: The Complete First Season DVD
.
The-Casagrandes-DVD-Giveaway-800x8009 Days Left
Choice of Photowall Poster
.
17 Days Left
Escape Mail Adventure Game
.
Escape Mail Adventure Game giveaway24 Days Left
IQAir Atem Desk Air Purifier
.
air24 Days Left
Rogers & Hollands $100 e-Gift Card
.
24 Days Left
Nest Bedding Easy Breather Pillow
.
24 Days Left
OE Organic Energy Shots - 1 12pk Mixed Berry and 1 12pk Pina Colada
.
11 Days Left
Muttropolis Dog Toys
.
Muttropolis Doy Toys Giveaway24 Days Left
Plush Personalized Blanket
.
9 Days Left
SpongeBob SquarePants: The Complete Twelfth Season
.
SpongeBob SquarePants Twelfth Season DVD24 Days Left
Clearly Filtered Junior Insulated Stainless Steel Filtered Water
.
clearly filtered5 Days Left
Lavender heating pad set
.
sunny bay24 Days Left
UMIDIGI Fitness Tracker Smart Watch
.
3 Days Left
JohnBoosCo Maple Cutting Board
.
14 Days Left
2-Pack of MealEnders
.
mealenders24 Days Left
PeachSkinSheets
.
22 Days Left
.
holiday gift guide

Recent Posts

Filtered Water Pitcher Giveaway (Ends 2/15) @clearlyfiltered

Filtered Water Pitcher Giveaway (Ends 2/15) @clearlyfiltered
Lots-of-Games-For-Valentines-Giveaway-800x800

Lots of Games For Valentines Giveaway (Ends 2/10) @WinningMovesUSA

Lots of Games For Valentines Giveaway (Ends 2/10) @WinningMovesUSA
The-Casagrandes-DVD-Giveaway-800x800

The Casagrandes DVD Giveaway (Ends 2/1) @Nickelodeon

The Casagrandes DVD Giveaway (Ends 2/1) @Nickelodeon

Photowall Poster Giveaway (Ends 2/9) @las930

Photowall Poster Giveaway (Ends 2/9) @las930
Escape Mail Adventure Game giveaway

Escape Mail Adventure Game Giveaway (Ends 2/16) @mobileescaperm

Escape Mail Adventure Game Giveaway (Ends 2/16) @mobileescaperm
personal finances

The Importance of Financial Planning in the Gig Economy

The Importance of Financial Planning in the Gig Economy

Footer

Free Download

Productivity-Planner-Preview“Every day is another chance to get stronger, to eat better, to live healthier, and to be the best version of you.”

Download the FREE Colorable Productivity Planner to get your life more organized. Sign up as a newsletter insider today!

Be A Better You

Giveaways

Filtered Water Pitcher Giveaway (Ends 2/15) @clearlyfiltered
Lots-of-Games-For-Valentines-Giveaway-800x800Lots of Games For Valentines Giveaway (Ends 2/10) @WinningMovesUSA
The-Casagrandes-DVD-Giveaway-800x800The Casagrandes DVD Giveaway (Ends 2/1) @Nickelodeon
Photowall Poster Giveaway (Ends 2/9) @las930
Escape Mail Adventure Game giveawayEscape Mail Adventure Game Giveaway (Ends 2/16) @mobileescaperm
air@IQAir Atem Desk Air Purifier Giveaway (Ends 2/16) @deliciouslysavv
  • About Home Jobs By Mom
  • Terms & Privacy
  • Networks & Affiliations
  • Work With Us
  • Contact

Site Footer

  • Facebook
  • Instagram
  • Pinterest
  • Twitter

Copyright © 2021 Home Jobs by MOM · All Rights Reserved

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Reject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.