Business Services

Should You Rent Or Lease Your Company Premises?

Are you contemplating whether to lease or rent out your company premises? Are you unable to decide on any one?  Then here are a few things to be considered when deciding to rent or lease.


The first and foremost thing to consider is the affordability of the premises you are looking to shift to. You should draw up a budget and see if you could afford to buy the premise on lease which is in fact a long term investment or simply rent out the premise. Renting out the premise will be a fixed cost and at the end of the renting period will need to be handed over to the owner. But if you are able to lease it whilst maintaining an optimum cash flow level then it is better to lease. Since at the end of the lease the ownership will be transferred to you and it will become an asset to you.

The length

The length of time you will need the particular office space for lease Hong Kong will also affect your decision. As, if you need an office for a short period of time then it is only probable that you rent out the office. If you need it for the long term, then it is best that you lease it out. Most leasing companies now provide leasing facilities for lengthy periods which will mean reduced monthly installments. When such affordable installments are also available it is best that you lease the office and not rent it.


Your type of business is also a factor you need to consider when deciding whether to rent out or lease a premise. If the business requires to be in the same location for instance, a supermarket is a expected to be in the same location. Then it would be practical to lease the premise and obtain it at the end of the lease. However, for a business like a call center it doesn’t matter where they operate from. And they can also rent out in a cheap commercial rental area. Since renting or leasing, does not affect their business in any way.


Stakeholders like employees, shareholders, suppliers and customers too will have a major impact on deciding whether to rent or lease. Some businesses are perceived to have an own premise by the stakeholders. While, some others are not. You can get the opinion of your stakeholder parties too that matter the most to you. Sometimes, stakeholders are not willing to continue business with you if you keep renting new premises. So make sure to get your stakeholder input when deciding to rent or leas you office premise!