Whether To Buy Or Rent An Office Space In Toledo

So you are a small business owner which is soon going to start its operations. Al-right, congratulations on your new endeavour but where are you going to manage your business from because without business address, you are likely to face a lot of problems in dealing with your prospective clients and walk-in customers too. Do you have your own office space which you purchased recently? Or, you are considering to buy or rent office space? Whether to buy or rent Office Space In Toledo is a challenging situation which all business owners have to face one day, sooner or later.

This article will study how both these aspects have their own benefits and downsides. Read on to find more about it.

The Pros and Cons Of Buying Office Space: To tell the truth, there's nothing like having your own office space as you are free from the worries of paying rent every month irrespective of how your newly started business is fairing. Buying your own office space is long-term, fixed investment which gives your business clear, fixed costs. You also get tax deductions in the form of mortgage interest, property taxes, and other items as a result of the associated costs of owning and running a private commercial space. In addition, you also get a chance to earn an additional income by leasing out extra office space which is serving no purpose to your business for the time being. It is also a very wise long-term investment because its rate is going to appreciate over time and you can sell it whenever you are in urgent need of money or to fund your retirement. Coming to the downsides of it, it eliminates the "flexibility" factor which means that in future your business may expand manifold and your current space may prove inadequate. You might have to sell it to meet the needs and requirements of your expanding business. Not to mention the stress it puts on the finances of your business with property, appraisal, and maintenance costs.

The Pros and Cons Of Renting Office Space In Toledo: An option of leasing office space allows small business owners to invest in growth and expansion of their business instead of spending a significant sum on the purchase of office building. In other words, your business can cash in the opportunities available in the market because your money is not tied up in real estate. Renting an office space is also an effective way of implementing cost-cutting during financially critical times. You have an option of moving from large office to small office and eliminate extra rent which you used to pay. Although renting an office is probably the wise thing to do for many start ups, it is subjected to variable costs in the form of annual rent increase and higher costs on expiry of your lease agreement.

Wrapping it up, the answer to whether to buy or rent an office space is not clear and it depends on many factors such as financial, personal and tax issues which determine if you are in a position to buy a new office or not. Seeking the help of your financial planner and accountant will help you in making a right decision at the right time.

Visit our website to view our office spaces available in Toledo. We offer sophisticated work spaces for business and meeting purposes.