When starting up a business or company, acquiring office space or buying one can be one of the many decisions that you have to face as a business owner. If you are based in Houston, Texas, you can avail a membership for workspace solutions for your startup company. Here at UOffice Executive Suites, we will be sharing with you an article discussing whether you should rent or buy an office space. If you think this information will be beneficial to you, we encourage you to keep reading below to find out.
There are plenty of aspects that must be considered when starting a business; it is a must to have a presence in the market, so that means you have to get an office space in a prime location. Aside from thinking about the size, location, and amenities of the office, you must also decide whether to buy or rent your office space.
Office spaces make a huge impact on the finances of any business because it is where the day-to-day operations will occur. To have an informed decision that will suit your business and your short-term and long-term financial goals, we will provide the advantages and disadvantages of renting versus purchasing an office space. Keep reading below to find out more information.
Should You Rent an Office Space?
Renting office space from a company that offers workspace solutions provides great flexibility which is suitable for small and startup companies.
When you opt to rent a virtual office space for your business, you are not tied to just one location, bound by long-term leases, or required to pay monthly payments longer than your lease, you can easily adapt to the changing needs of your growing company. This is the best option for a company or business that is either planning to move to a new area after a few years or expecting to see relevant changes soon (within a few months or a year).
Flexible virtual office space can help you save your money so you can set aside more money for other important aspects of the business. If you have a significant amount prepared, it can help grow and improve your business.
Easy to Manage
Another benefit of renting an office space for your business is it is low maintenance and easy to manage. Since the office space provider maintains the office space, you do not have to allocate a budget for its maintenance or upkeep. For example, if there is equipment that needs to be fixed; the office space provider will deal with it for you. You will not have to spend a lot of money to fix something that broke; you can just allot your money for the improvement and growth of your business.
When you buy office space, you have to spend a lot of time and money to make sure that your investment is properly maintained, which can be expensive if the building is poor and needs regular maintenance.
If you want your business to be located in the city center, you must be ready to pay a huge sum of money. However, if you are just renting a virtual office space, you can save a lot of money. Office spaces can be quite expensive it can take a huge chunk of your finances.
When you choose to rent you can have the access to a great office space location. You will not have to allot a huge amount for down payment or monthly payments for the lease. As a business owner, you can have more financial freedom that will allow you to enjoy the convenience of having a prime office location which in turn can also improve your employee’s welfare and your company’s reputation in the business world.
Possibilities for Networking
When you rent office space, especially working spaces such as hot desk providers and co-working spaces, you can meet other professionals from other companies. This can easily allow you to be connected and create new professional relationships that can improve your business and professional network. It can also open up opportunities that can help you grow your business.
When you rent an office space, sometimes the management in charge of the office space can be difficult or cause problems for you and your company. You must be wary when choosing an office space for rent as you can get one that might even inhibit the smooth operation of your business. You must check if you can choose the available facilities and their reception team.
To avoid this, make sure to choose a trustworthy company like UOffice Executive Suites for all your office space solutions.
Increasing Rental Prices
Rental prices can increase at any time due to inflation and growing operational costs. In case you want to increase your office space, a large office space can be a bit expensive on your part on top of the overhead costs like insurance, utilities, and administrative costs.
Should You Buy Office Space?
When you are the owner of your office space you can design and customize the space according to your company’s brand. When you rent your office space, the management will often limit you with regards to decorating, customizing, remodeling, etc. While if you have your own office space you can do what you want for your space, in case you want to upgrade or customize it according to your company’s brand.
Nowadays, office solution providers are allowing customization for rental office spaces so it is a nice option for those companies that prefer to rent an office by paying their monthly fees.
If you have the budget and you want to purchase an office space in a strategic location, it can be a great investment because its value can increase with time. Office spaces in prime locations are often undergoing upgrades and are constantly being developed.
It is often connected to a huge car park, near shopping malls, has access to public transportation, etc. When these things occur, it can help increase the demand for office spaces in the vicinity, therefore, increasing the value of your investment. If you have money enough to purchase office space for your business, it can be a great investment opportunity and a valuable asset.
If you purchase huge office space for your company, you can rent out the additional space to other businesses so you can have extra income from the monthly rent. The rent you can collect can also be used for the monthly mortgage fees of your office space.
When you own your office space, you will have to pay more tax than if you just rent it. When you have to pay taxes it can make a huge dent in your profits and slow down the growth opportunity for your business which is quite true for small and newer businesses that are still trying to find their place in the business world.
Make sure to keep in mind all these additional costs that will be added to your company expenses once you decide to purchase office space for your company.
Maintenance and Upkeep
Purchasing an office space for your business means you will be the one responsible for its maintenance and upkeep. You have to set aside a budget for the repair and regular maintenance of the office.
The value of properties can depreciate, depending on different circumstances that can affect them. When this occurs, it can greatly affect the returns once you decide to sell it. It can hinder the growth of your business and even waste your valuable resources like money and time.
If you are unsure whether to buy or rent your office space in Houston, Texas, you might want to consider availing of workspace solutions from a reliable company such as UOffice Executive Suites. You can avail of a virtual office membership in our office in Bay Plaza please check out this link or you can avail of membership for a private office suite in Post Oak, please visit this link here.
You can contact us if you do not know which workspace solution fits your company; we would like to help you out! Check out this link to know more about our plans and services.
You can rely on UOffice Executive Suites for the different workspace solutions that we are currently offering. If you want to avail of membership for any workspace solution, please reach out to us. Contact us by calling our number at 832-932-5165 or you can send us an email at firstname.lastname@example.org. We have different locations, Bay Plaza, 711 West Bay Area Boulevard, Suite 220, Webster, Texas, 77598, and an uptown location at 550 Post Oak Boulevard Houston, TX 77027. What are you waiting for? Contact us today and choose UOffice Executive Suites for all your workspace solution needs!