Consider leasing your premises?

By June 14, 2022 No Comments
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Consider leasing your premises if you do not want to build or buy your premises.


Ingredient 1: Keep Within the Law


What are the advantages and disadvantages of leasing your premises?


If you do not want to build or buy your premises, you may wish to consider leasing your premises.  However, there are many pitfalls in leasing premises,  For example, restaurant premises must comply with local health department requirements and it is too late, having signed a lease, to discover that the premises do not comply with these requirements.

Leases may be costly, and the payments burdensome, especially in slow periods.  However, the major disadvantage is that, in many ways, the business is the premises and you do not own the premises,  The time may come when the owner wishes to resume occupancy or lease the premises to someone else and in such a case you may have to abandon the business you have built up and possibly the improvements as well.

Advantages of leasing
    • Leasing a property allows you to set up your food outlet with the smallest outlay.
    • Leasing allows you to spend more money on equipment and decor for your food outlet.
Disadvantages of leasing
    • You may be exposed to a large rent increase.
    • You will always have to get permission from your landlord to change anything in the shop.

Before making a decision on whether to purchase or lease premises for your food outlet, decide what is the best available site that will give you the greatest opportunity to make the most of your business.  Once you have done this, look at all the financial aspects of your chosen property and if you think you can afford it and make money, then go for it whether it is for lease or purchase.

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