For a business owner, the location of the office matters a lot as it is the centre of all of his activities. For a lot of owners of small business and entrepreneurs, the query of whether to lease or purchase office space may be a puzzling matter. In case you ask any expert real estate broker, she o he may likely say that it relies on the particular situation. The reality is, as it is the time to make a decision about this crucial business issue, there exists not really a solution that suits all.

Certainly, in case you are short of enough capital to buy a commercial building, your decision will become very easy. However, leasing can be the best step at least. Statics reveal that the majority of new owners of business begin by availing the commercial office space for lease, and a number of business consultants suggest renting the workplace till you gain a foothold and your enterprise commences operating with ease.

 A few benefits of leasing the business property

Flexibility

One clear draw of renting property is the aspect of the flexibility it offers. As the lease is over, you are capable with ease to move to some other workspace that is well-suited to the requirements of your enterprise as well as your pocket.

No mortgage

Not being trapped in a mortgage loan permits you to make cash available and invest it where it will be required. This is particularly useful for owners of the new business.

Les responsibilities

The landlord or property manager happens to be the person who is responsible for remodelling, maintenance, security, and various other issues of management.

Deductible payments

In case the arrangement makes a true lease, and the law confirms it is, then rental payments happen to be deductible as running costs.

Negotiable rates

In case real properties within your zone are ample, it can be likely to talk about a low cost on the lease amount.

Tax credits

Any investment tax credit makes a rupee-for –rupee reduction within state income taxes, equivalent to ten per cent pertaining to the expense of the equipment that may be put into use in the current year. While the leaser normally enjoys the tax credit, it can pass a portion of the advantage on to his lessee by way of a diminished lease payment.

Less tax paperwork

In case your enterprise is leasing workspace or shared office space for lease, your ITR or income tax return shall be simple to submit as compared to the unending forms that owners of the building are needed to fill out.

No down payment

As you happen to buy a building, you normally dole out twenty to twenty-five per cent relating to the cost by way of a down payment and after that mortgage the balance. As you lease workspace, you will be needed to shell out merely one –two months pertaining to the lease value prior to moving in, that makes in a great way a blessing for hard-pressed owners of small business.