Buy or Rent Business Premises

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Do I rent or buy the premises? What is the best option for my business?

These days I am giving some informative pills in the Behargintzak of Galdakao, Muskiz and Abanto-Ziernena, within the training that is given to the entrepreneurs from the Town Halls, and it is one of the most recurrent questions that the entrepreneurs ask.

Better buy or rent the place where I will do my activity?

It depends very much on each circumstance and the business but I will try to give you some small tips that can help you make this decision.

The best thing is to assess the pros and the purchases when buying or renting the premises, for this we will list the expenses that come from one and another decision:

1. If you rent the premises, you DO NOT pay the IBI, nor the spills of the community derived from works, maintenance, rehabilitation, accessibility …

For this reason I recommend you do a simple check, when you are looking at the place to rent or buy, see if the building has passed the ITE. It’s very simple and it will take you 2 minutes.

Here I leave the link of Euskoregite, where simply entering the postal address of the building informs you whether or not it has passed the ITE.

If a building has passed the ITE, it gives you the guarantee that the building is in a good state of health and that it does not need works in a few years, and therefore it does not have to have spills derived from rehabilitation works of the building.

To know the amount of the IBI the simplest thing is that the current owner gives you a copy of the last receipt of the IBI of the place, and so you can know the amount.

2. If you are going to have to do works in the premises to prepare it for your activity … remember, the works that you make in the premises will remain in the premises.

Therefore, if you are going to rent a place and you are going to carry out works, negotiate with the owner a lack of rent for at least the months in which you are doing the works, and for a number of months that cover part of the work. at the end of the day, if you leave the premises, all the improvements you make in it will remain in the premises, and therefore revalue the premises. And everything that is revalued influences the price of rent or sale of the premises, and therefore the owner.

3 . And you have to be realistic, think about the future, a business may fail and if you bought the premises you risk having to continue paying the premises even if you have had to close the business.

If you have doubts, it is better to rent the premises and that in the rental contract you include a clause in the event that in the future you would like to buy the premises, what is called rent with the right to purchase or else a trial option if the owner Place the store for sale.

And it can also happen that the place you buy is too small for you if you want to expand the business because it’s going really well for you.

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