requires significant time and effort.
Increased Liability
Now you are the party who is responsible for the people who work inside the building, as opposed to the landlord. You’ll also have to deal with the maintenance, repairs, and upkeep of the building now, adding a whole lot to your plate. This is even truer if you decide to rent out any of your space to another tenant. All of this takes away from your focus on your primary business and normal tasks.
Downside Risks
Just like any investment, there’s no guarantee the property will increase in value. A property can lose tens of thousands of dollars in value over a five-year period. There’s always a risk involved. If you lease, you aren’t subjected to any of that.
CONS OF LEASING
Most of this relates to the lack of control over certain aspects of your lease and property.
There’s No Equity Built or Income Possibility
It’s not your long-term investment here. It’s the landlord’s. You are helping to build their equity. There is no sale or refinance that can net you a profit. Though you can write off parts of your lease in your taxes, you can’t deduct nearly as much as you can owning a building. You also won’t have the option of renting out part of your space for additional income.
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