There are several business owners who face this crucial situation at the end of every financial year. Should they rent or own a commercial property is an age-old question. There are several benefits of both renting and buying. Hence, there are few business owners who either buy or rent commercial properties depending on the business requirement.
Commercial condominiums can be used for single use buildings. They can be either used for office spaces or even retail. They are also used for multiple usage except commercial. They can be used for office, retail, spa or even salon centres. Most of the residential condominiums are either newly constructed or converted in Montreal. Let us check the advantages and pros and cons
Advantages of Owning Over Rent
Considering the status of the business a businessman can decide whether to lease the place or purchase it. Ownership gives full right to the owner and the person can build equity while raising monthly investment. Additionally, the owner gets huge tax benefit related to the depreciation of the property. This is non-transferable and the tenant cannot access this.
It also gives full occupancy of the LuxuryMTL. This can help the owner in spreading its wings in the area. The owner can also opt for tax exemption, if the person can show higher profit margin in the area. Thus, it shows the business helping the economy of the place.
Advantages of Rent Over Owning
While you are starting a new business or even in the mid phase of the business renting will be ideal for you. It will be a great option for those who are starting their business and do not have strong financial stability. In this scenario, investing a lump sum amount in purchasing the property will not be a great choice.
Renting will not deplete your funds and will help you in understanding how the business works in that area. Also, you can enjoy tax deduction, if you can show a certain amount of employment in that area. This means it can also save you money. Yes, it will never give you total ownership. Hence, you can always rely on the ownership about the maintenance and on-site management services.
As the economy rise or takes a dip, it takes a toll on any business owners. With the rise of the millennial thought new age business owners are opting for renting and leasing rather than buying it at the first instance. Even they are buying, they are reusing the owned property as a rented one. This also gives them an edge to increase and add to their profit.