Blog image

Many small businesses rent office space or retail floor space to accommodate their services, but they can also own real estate as an alternative to renting. The "rent to own" or "rent to buy" form of real estate finance allows a buyer to rent a property before purchasing it.

Rent-to-own or lease-to-own is a method for a buyer to utilize a property in the near term while saving for a down payment and eventually purchasing it. A rent-to-own arrangement is one in which the buyer and seller agree on a sale price for a property and then the buyer pays rent for a certain significant period of time.

What are the benefits of renting to own?

  • Rent to own gives a buyer time to build credit, build up a down payment and secure financing before making a purchase.
  • The buyer can also "test drive" the property before committing to a purchase by renting to own.
  • Renting gives you maximum flexibility.
  • When you rent office space, you are only committed to the location, square footage, and monthly payment for the duration of the lease.
  • Renting may be your best option if you don't plan to stay in a place for more than a year or two, or if you expect your office needs to change.

The appeal of purchasing office space for most professionals is the opportunity to create equity in the property. If the building grows in value over time, the office might be an excellent investment vehicle.

A leasing-to-own office space option allows a company to rent in an area with a good location and a strong reputation, while also having the opportunity to eventually own the property in a prime location.

When starting up a business, you may not be able to afford buying an office right away. That’s why choosing a rent-to-own or lease-to-own contract would be a great investment!