Regardless of the specific business that you are planning to put up, the right commercial property in Peterborough can make or break all of your business plans. For many business owners in Peterborough, the more practical choice is to rent an establishment rather than to commit to a full purchase.
The reason that most of these renters give is the fact that renting requires much less capital. It also allows them greater freedom when it comes to relocation. Nevertheless, renting a commercial property in Peterborough does have its own share of disadvantages. To help you discover the more specific advantages and disadvantages of renting, listed below is a useful guide that you can follow before you commit to a commercial space.
Advantages of Renting a Commercial Property
Flexibility and Freedom
Again, one of the greatest advantages of renting a commercial property versus buying it is the freedom and flexibility that it allows its tenant. You do not have to worry about being tied down to your investment. As long as you have paid off all of your debts to your landlord, you can vacate the premises as soon as the need arises. Whether your business grows or fails, you can easily transfer to a more suitable location without worrying about your current property.
Though you will be paying a monthly or quarterly rental fee, you will need to shell out a considerably smaller amount for your initial capital. Compared to properties put up for sale, rented spaces are much more affordable. This is particularly useful for a business owner who might need to allot more of his or her budget for actual business expenses.
Independence from Fluctuating Markets
As a mere tenant, you will not be expected to compensate for the fluctuating interest rates on your building or apartment. Though your landlord will adjust the interest rates in accordance with changes in inflation, your overall rental fees will only rise by a minimal amount. Similarly, any sudden market crashes that affect the real estate industry are not an immediate concern for you. In fact, you will hardly feel the impact of any sudden drops in the value of your property.
Freedom from Maintenance Responsibilities
Though it would be in your best interest to maintain the cleanliness and condition of your commercial space for the benefit of your clients and employees, you will not need to shoulder the costs of major repairs on your unit. Likewise, the landlord will be responsible for maintaining the plumbing, electrical, and structural aspects of the property.
Disadvantages of Renting a Commercial Property
Uncontrolled Rental Increase
Unfortunately, even if your budget might not be able to accommodate it, you will be at the mercy of your landlords rental increases. Depending on the payment scheme you have decided on, this could mean a monthly or quarterly increase on your rent.
Lack of Property Rights
As previously stated, you will not be directly affected by sudden changes in the market value of your property. The downside of this fact is that you also do not stand to gain anything even if your commercial property suddenly grows in value.
In the end, the most important thing to remember is that renting commercial properties works best for business owners who are looking for a cheaper, short-term option. It works out best for renters who will stay for less than five years. This way they will be able to maximize the space without incurring any of the losses associated with rising interest rates and service charges.