If the organisation you work for, is looking out for opportunities to expand the business instead of trying to expand the building itself, the alternate option is to relocate or search for a new space. You will have the freedom to either rent or purchase the space completely based on what is best for you and the organisation.
If you find it difficult to decide whether you want to go with wanchai office rental or a full purchase, the below guide will outline the pros and cons.
Advantages of leasing
- Holding on to capital – leasing a space means that the organisation will have more funds available because an enormous amount is not needed to pay for the property. The additional funds can be used to purchase any additional furniture, equipment, and products or pay off suppliers in order to make the lease successful. If there are other additional costs that needs attention, the money can be used for that as well.
- Less accountability – as the property is owned by someone else and they are responsible for all the repairs and maintenance of the property. The land owner will arrange for all the bills to be paid on his end and therefore, you don’t have to worry about anything.
- Flexibility – In the event that you need to relocate again due to an expansion or downsize of the organisation it will be easy because you are paying an office rent instead of owning a property. Once the renting policy is over, the moving out is very easy. Check out more here http://www.landvision.com.hk/district/sheung-wan/.
Disadvantages of leasing
- You will not be able to make any changes to the structure of the space to make the environment look better because you need to get permission from the property owner. He or she might allow replacements to wiring or cables to ensure that the technology needs are met. However, no walls or other items such as plumbing items can be removed or moved around the building.
- Increase in the lease – The month lease amount is bound to increase once the lease period expires. This is likely to happen in areas that suddenly become popular due to commercial reasons and thus, your rent budget will increase.
- There are instances where the ownership changes and then this might cause your organisation distress because the next owner might not want to lease out the space after the lease period expires.
If the budget of the organisation is fairly average, leasing seems like the best option. You wont have to worry about paying taxes or bills in addition as well. Consider the factors and the long-term goals for your organisation and make the right decision.