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    To Rent or to Buy: Which Is Better for Your Home Business?


    One of the biggest decisions you’re likely to make when you decide to launch your own business is where you will base your operations. What if you don’t own your home yet? Is it better to keep your business in a rental, or is it time to purchase a home of your own? With that in mind, check out the pros and cons of each option.

    Renting

    Running a business out of a rental and running one out of a home you own can have similar advantages over purchasing a brick-and-mortar location:

    No commute
    Overhead costs are lower
    Schedule flexibility

    Cons

    The advantages of running a home-based business from a rented house are sometimes similar to the disadvantages. For example, you have schedule flexibility, but there are also more distractions. Rentals also provide a unique conundrum in that your landlord might not approve of you running a business from the house or zoning laws might prohibit it. Rental homes are also usually temporary, meaning you are likely to move out of the home in the near future, which also means having to update your business address and legal paperwork every time you move.

    Buying

    If buying a home interests you, you’ll need to follow some important steps, such as determining your budget, getting a loan pre-approval, looking for homes online and working with a skilled and experienced realtor fromInfinity Realty

    The benefits of running a home-based business are similar to running one from a rental, but purchasing your own home gives you more control over the space. As CBS News notes, building a home office into your house could alsopotentially add value to the home’s overall worth. Running your business out of a home that you own also allows you to build equity. If you decide to talk to a real estate agent about moving to a bigger home later on, you should have a greater budget available once your home sells, depending on the current market and your equity.

    Cons

    Some home locations may require special permits or licenses for you to run a home-based business, which means it could be prohibited in specific neighborhoods. Because cities and towns may have different regulations regarding the zoning of a business, be sure to check that you have the right permissions to base your company out of your house. If your business relies on foot traffic, it can also be difficult to attract customers to your home without a significant marketing campaign.

    Limiting Your Liability

    If you’re going to be working from home, you may want to take steps to shield yourself from potential litigation. Registering as a limited liability company (LLC) allows you to separate your assets from your business, and you’ll gain some tax benefits as well. To form an LLC in Florida, you can hire an attorney, do the legwork yourself, or save time and money by hiring a formation service to complete the process. 

    Consulting a Professional To Help You Decide

    There are many personal considerations for running a home-based business, and ultimately, it is up to you to decide if it would be better to run the business out of a rental or wait until you own a home. If you’re ready to purchase a new home that can accommodate your home business, complete this form to reach out to the real estate pros at Infinity Realty. 

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