Office leasing is an agreement between two parties where one allows the other to use his or her office for a certain period under specified conditions. Office leasing is the smartest move to take especially if you lack enough capital to help you in the purchase of commercial buildings, Statistics show that a lot of small business grow by their owners starting out by leasing office space.
Leasing your office is important especially if you want your business to grow. One of the obvious benefits is the flexibility it provides because when the lease is over you can relocate easily to another office that better suits your needs and the budget. There are also fewer responsibilities because the manager of the property or landlord is the one who will be responsible for maintenance, remodeling, security and other issues concerning management of the office.
Office leasing is important in that there are deductible payments if the internal revenue service agrees. When you purchase a building you will pay 20 to 25 percent of the price as a down payment while when leasing an office you will only need to pay one or two months of the lease which a real blessing for small business owners.
There is less tax paperwork in office leasing because if a business leases office space then, its income tax return will be easier to file when you compare them to endless forms which building owners fill out.
It is easier to keep pace with technology when you do office leasing because many businesses rely on computers, communications devices, and other equipment. Leases are easier to finance than purchases because some banks will want to see two or three years of financial records before extending a loan which a lot of new organizations do not have , the leasing companies will only require six months of credit history before a lease is done.Office leasing improves your cash flow because it frees up cash, leasing office equipment will not require down payment hence you will not experience financial problems in your company.
Here are some of the things you are supposed to do before you start office leasing. First of all estimate your budget because knowing your budget will help you to narrow down options quicker and also save you from paying higher payments than you can afford. It is crucial to consider how long the lease term will take because it is the one that will enable bargaining and negotiations, If you have a one-year lease agreement then you basically have no negotiating power.
It is also good to look at the interior and exterior views especially if you aren’t renting the whole floor of the building because this affects the price, When you want an exterior space then the quality of the view will play a factor.