Are you looking for a new property but are unsure if you should lease or buy a space? This is a common question that many individuals face. There are many advantages and disadvantages to both, and it comes down to what suits you best. As one of the premier companies in property management in Chicago, Frontline Real Estate Partners will answer all of your questions.
Financial
Although buying a property is more money up front, there are numerous other ways to make extra money off of the space. If your business does not take up the entire space, leasing out other areas is a great way to make additional money. As the owner, you are also able to receive tax advantages such as interest and depreciation deductions. The downside of owning is that you are responsible for any repairs that the building or appliances require.
One of the financial pros of leasing a property is that it is a much lower monetary commitment than buying. The resident only has to worry about paying their rent and utilities on time and are able to invest in other aspects of the business. The cost of living when leasing is also fully deductible and usually easier to foresee and budget for. On the other hand, if you are an established business owner with easy access to capital, over time it could actually be more expensive to lease.
Control
If you are leaning towards buying the property, you will be happy to hear that you will have complete control over your space. There is no landlord to answer and you will be in charge of any changes to the property.
When leasing, you have very little control over the space. You must follow the guidelines presented in the lease and any changes must be approved. Additionally, you have no control over the other tenants of the building. You do have control over the location; you are able to occupy space in a location that you may not be able to afford to own.
Duration
Once you buy a space, it is yours until you decide to sell. When you lease it is for a set duration and have the option to release at the end of your term.
If you are torn between whether to buy or lease your next property, visit Frontline Real Estate Partners to speak to a specialist who focuses on property management in Chicago.