When your business premises comes up for sale ‘should you buy, or continue renting’?

Owning a business premises versus renting is a major decision that business owners must consider. Having a physical place of business is an essential part of any business and is a key factor in determining the success of a business. There are several reasons why it is beneficial for a business to own their own business premises rather than renting, such as increased business identity, increased control over the property, tax deductions, and long-term financial security.

Business Identity: Owning a business premises provides a business with a greater sense of ownership and a more established identity. It gives customers a physical location to which they can come and gives the business a more professional appearance. Owning the property allows the business to customize the space to their specific needs, making it more attractive to customers. It also allows the business to build long-term relationships with customers, as they know they are coming to the same place each time.

Control: When a business owns their premises, they have complete control over the property. This means that they can make any changes to the property that they deem necessary, such as renovations, expansions, and more. This can be beneficial for a business, as it allows them to tailor the property to their exact needs and create a space that is conducive to their operations.

Tax Deductions: When a business owns their business premises, they are able to deduct some of their expenses from their taxes. This can include property taxes, mortgage payments, and more. This can be beneficial for businesses, as it can help to offset the cost of owning the premises and can lead to savings for the business.

Long-Term Financial Security: Owning a business premises can provide a business with long-term financial security. This is because a business can use the property as collateral for loans or other financing options. This can help to secure the business’s future and can provide them with more flexibility in terms of financing options.

Overall, owning a business premises can be beneficial for a business in several ways. It can provide the business with a greater sense of ownership, increased control over the property, tax deductions, and long-term financial security.

For these reasons, it is often beneficial for a business to own their own business premises rather than renting.