To rent or not to rent your next call center office?
Find out which option is the best path to take when you start up your call center office in a new location.
When growing a business whether big or small you eventually come face to face with a dilemma concerning your office space and that’s if you should or shouldn’t invest money in your own space or building instead of constantly heaving to pay rent for it. There are definitely a bunch of pros and cons to buying or renting your own office space, especially if you have a call center office that you’re looking to expand a bit more. Listed below are facts that may be able to help you out as you consider which path you want to take:
Costs and deductions
Obviously, the benefit that you would get from owning a commercial building or office space of your own is that you would no longer have to deal with the issue of budgeting rent that may increase as time passes into your company’s finances. Instead, you can now lock-in your company’s long-term commercial mortgage at a fixed cost. While, when you’re leasing a call center office space there are times where you may be subjected to an annual rent increase and maybe higher costs by the time your lease expires. Not to mention the lack of equity that you get from renting a place out, because no matter how many times you pay for the place you aren’t going to get any ownership stake in the current property you’re on.
Is there flexibility?
Usually, any kind of option other than leasing comes with a bit of a headache here and there, but when you’re just renting then you have more time to just focus on your business. Buying a small business office right off the bat is nice but when your company’s growth exceeds the limitations of what the area can provide, forcing you to sell your property.
In terms of capital, by leasing an office space you will be able to free up your ability to borrow funds and not feel like you constantly have your hands tied behind your back when you need to make necessary responses to market any market opportunities. While there isn’t a big difference between buying your own office space and renting one out there is a minor inconvenience of being able to be upfront about your costs. Upfront buying a commercial space or building is undoubtedly going to initially cost you more, especially if you include the property appraisal, maintenance, insurance, renovations, and large payments.
Overall, the decision of whether or not you should be investing your money in something more permanent or not for a call center office would be entirely up to you and how well do you think your small business is going to expand in the next few years. Leasing is a good option if you don’t want to commit to one area and buying an office space is great if you want something permanent, so it’s also highly dependent on your preferences.