For small-scale businesses that barely require 350 square feet of office space, few facilities and have only a few employees, renting property may always seem as the same viable option as it does to large businesses. After all, the financial benefits of having LAN, Wi-Fi and telephone connections as well as gas and electricity for a small area usually comes with the rental and tenants do not have to worry about maintenance or taxes. Furthermore, all of the costs associated appear to fall well within the company’s budget.
When a company is looking to establish a long-term business, it is seldom a good idea to rent property and it is highly recommended that entrepreneurs position available resources to be able to buy a Clifton Park commercial property for rent or lease for that new company. Following are just some of the detrimental things a company may encounter when going for Clifton Park office leasing.
- Image Limitations – Renting an office space can be very limiting in terms of decor, interior design and layout of the area. The owner may not approve of plans to change the room set-up or alter the floor design. That leaves no other choice than having to accept the current layout, possibly resulting in a work area that is unimaginative, uninteresting and monotonous. This could have a huge effect on the image of any business, both to clients and to employees.
- Occupancy Costs – Most leases specify the amount of rent to be charged for a limited number of years and is calculated keeping the value of the business in mind. Once the rental agreement ends, the owner may decide to increase the amount of the lease to any arbitrary amount. After two years of occupancy, an occupant does have the Tenant’s Rights law to be used to oppose any extremely high rental hikes; however, this process is long and tedious and can often be quite expensive as well. So the leaseholder may face additional variable costs at the owner’s discretion.
- Additional Services – Businesses may also end up paying a lot of money for additional services. Even though the lease may stipulate the availability of certain services such as LAN, Wi-Fi, and telephone connections as well as gas and electricity, it may not stipulate that payment for the use of these services is the responsibility of the tenant and not the owner; the owner has merely provided access to such services. Over a period of time, the overall cost of the building space, any facilities and maintenance may turn out to be much more money than the cost of the property itself. So the owner makes money at the expense of the tenant.
- Maintenance and Repair Delays – Any repair work that is necessary; maintenance of the building itself; and any other issues requiring immediate attention must first be reported to the owner. An inspection to verify the issues reported must occur before any work order can be given. A manager or landlord may then be contacted to arrange for such work, leaving the tenant with absolutely no say in the matter, especially in regards to the timing of the repairs. Delays could result which could indeed have a negative impact on the leasing company.
- No Equity – After investing a great deal of money in leased property that is leased, all the tenant has is temporary accommodations with little or no freedom. In addition, there is absolutely no equity generated for the business and not much to show for all the payments that the tenant has paid.
Although the rental process may seem like a good thing for a new company since it requires little money be invested up front, in the long run it may not be as beneficial as it originally appears. There is little to no return for all of the money that has been spent over the duration of the lease. Therefore, it would be prudent to look into all leasing aspects carefully before learning the hard way that renting office space might not be best idea for a fresh, new business!
