Communications & Corporate Relations Staff
You may be looking for a new Office space for rent in Monroe LA if your lease is up soon, the size of your practice has recently changed, or if you are just starting a business. When considering a move, buying or renting is a very important factor to consider, along with location, size, and amenities.
Consider these potential benefits and disadvantages, as well as tips about each option, before consulting your financial advisor.
- The flexibility of renting is unmatched. Renting office space means you aren’t tied to the location, size, or payment for longer than the lease period. If you expect to move offices frequently or if you don’t plan to stay for more than a year, renting might be the best option for you.
- Property maintenance is minimal when renting.
- You might be able to establish your practice in a desirable location that you otherwise couldn’t afford if you rent.
- A shared office space can be arranged if you are a part-time practitioner.
- You can meet other specialists by renting. You may have the opportunity to build relationships that help your practice grow if you rent space in a medical office building.
- If you are a renter, you don’t build equity.
- Over time, your rent will likely increase.
- The landlord may be unreliable or difficult to deal with.
- Ensure you are adequately protected against unreasonable or unexpected expenses and responsibilities by having your lawyer review the lease before you sign it.
- In your lease, make sure that the landlord outlines their maintenance responsibilities – which usually include the building’s structural, plumbing, and electrical systems – as well as your responsibilities.
- There may be other terms you wish to have in the lease, such as a death and disability provision that allows you or your partner to terminate the lease in the event of incapacity, or an exclusivity provision that prevents any other practitioner from leasing space in your area.
- If you are planning to leave, make sure you know what the details are about terminating the lease.
- Most practitioners are attracted to buying office space because of the opportunity to build equity. A property’s appreciation will make it a good investment vehicle in the long run if it appreciates in value.
- If you purchase a property and have unused space, you may be able to rent it to a tenant. In addition to paying the mortgage, you may be able to cover other expenses. Practitioners often purchase more space than they need and rent the extra space as their practices expand. If the practice shrinks in size and they don’t want to move to a new location, they can rent out unused space.
- It is easier to remodel, upgrade, and decorate the space than renting.
- You have a responsibility to maintain your property, which requires time and money whether you do it yourself or hire a property manager.
- The property will be subject to taxes.
- However, beware of potential financial pitfalls when buying office space. In some cases, you can lose money in a deal if the value of a building declines or if you cannot find a buyer.
- Choose a real estate agent who understands the local market and the area.
- Purchases of commercial real estate should be discussed with your attorney and accountant.
- Make sure you research the properties in your area before deciding to rent or buy. Compare the prices and the features of the buildings in your area. Rent may be high and interest rates may be low, so you may decide to purchase office space rather than rent.
- Assess your cash flow situation as well. You may need to put up a lot of cash up front when you buy office space. The down payment may be too costly, or you may not want to tie up your cash in real estate.
- To include jointly owned property in your legal partnership agreement, you may need to amend your partnership agreement depending on the legal structure of your practice.