Deciding to own or rent your salon space is a big decision and one that should be given much thought to. There are benefits to both but also some downsides to consider too.
Pros of Owning
Owning gives you more freedom in what you can do with the space. There is more stability in owning as the rent won’t go up and you won’t have anyone telling you to vacate the space and find somewhere else for your business. It is also an investment for you so you have the potential to rent out the space to earn monthly income as well as the equity you will build over your time owning the building.
Cons of Owning
With the pros come some cons. You will have more of a financial output to buy the building vs renting a space. You also have the maintenance of the building and if you are renting space, you are a landlord in addition to running your business.
Also, if you decide you no longer like that area even though you have built equity, selling a building isn’t always a quick or easy task. Are you selling just the building or the business too?
We always advise people to actually sit down and write out your own list of pros and cons. Talk with a commercial realtor that can give you some ideas on the difference in pricing to rent vs to own and the ins and outs of owning commercial real estate. How much can you get for rent etc. Make a list of questions so you don’t forget any. Also, talk with a mortgage broker to see what you can qualify for and what your payments would be. Be sure to factor in all expenses too.
Good luck on your journey!