When you start a new business venture, you may need office space in which to operate. Should you look for an MA office for rent, or should you buy a building? There are pros and cons either way, and the right solution depends a lot on your individual situation. However, here is a general overview of the potential benefits of each.
If the property you purchase is large enough, you can rent out the extra space and make more money that way. Of course, you would then have all the responsibilities of a landlord in addition to running your business, which may be more than you can handle. Nevertheless, even if you only have enough space to accommodate your own business, there are still potential advantages to buying an office building. There are tax benefits from deducting your interest as well as from depreciation, which can benefit you in the long term. With a fixed loan, your monthly mortgage payments should remain steady, and the equity you build can fund your retirement, business expansion, etc.
A major advantage of renting over buying is that if you were to buy, you would have to pay a hefty down payment, but if you rent, you have no such obligation. If you rent commercial property, you may be able to find premises in a higher-end area than you could afford to buy in. You can deduct your lease payment similar to the way that you deduct the interest you would pay on your mortgage.
If you decide to rent your office space, check to see whether the lease specifies whether you or your landlord is responsible for upkeep and maintenance. Otherwise, you may have to negotiate this with your landlord. It is common for landlord and business tenant to split these responsibilities. For example, your landlord keeps the building itself in good repair, while you are responsible for the cleanliness of your individual space.