It is the goal of many business people in Thailand to own their own business property but just because it’s best for them, it doesn’t mean that it’s best for you and especially so if you’re just starting off your new business. This is why renting a property for your new business makes a lot more sense because it probably will suit your financial circumstances right now. If you apply for a loan to buy a property from your lending institution then it’s highly likely that they are going to want a substantial deposit put down first before they will even consider your application. Even then, there is no guarantee that they will give you the money and if you are successful then you are committing yourself to a property for the next 25 to 35 years.
This doesn’t make any sense at all if this is a new business venture because you have to get yourself over the initial hurdles over the next 2 to 3 years before you can even contemplate that your business may be here for the long term. This is why it makes more sense to use office rental until such times that you can grow your business to become a complete success and maybe then, you can start to think about buying your own property. This is just one of the benefits of renting and not buying a property when it comes to your business and the following are some others.
- No maintenance costs for you – If any maintenance needs to be carried out or any repairs for that matter in your business property that you are renting, then it is up to the landlord or the property manager to do the work for you. You have absolutely no responsibility to carry out any maintenance or to make any improvements and if anything stops working which is in your rental agreement then you can immediately contact the landlord who is required to fix it.
- No need for a down payment – As was pointed out briefly before, if you take out a mortgage to buy a business property then you need to put down a significant first deposit. You don’t have to do such a thing when you rent and all you will be asked to do is to pay some kind of security deposit which is usually about one month’s rent. If you take care of the property and you give the required notice then your security deposit will be given back to you when you leave.
- It gives you more flexibility – If your business doesn’t seem to be working in its current location then it’s easy to give your notice and to move on to somewhere better. You will not have this flexibility if you buy a property and you will be stuck there for the long term unless you can sell it quickly.
These are three great reasons to rent a property for a business rather than to just buy one outright.
