Advantages of Renting a Factory or a Warehouse

03 February 2022

When business owners and entrepreneurs look to expanding their business operations, one of the biggest challenges is finding an appropriate factory or warehouse that can support and encourage future success.

 

Another problem that business owners deal with is whether or not they should rent the factory / warehouse, or go ahead and build it themselves.

 

In this article, we're going to take a closer look at the various pros of renting a factory or warehouse, for your convenience.

 

By the end of this article you should have a thorough understanding of the advantages and be able to make an informed decision as to which course of action will be best for you and your business.

 

More available capital

One major benefit of renting a factory and warehouse rather than building them, is the flexibility you gain with capital allocation. You see, when you invest in renting a factory or warehouse, it is significantly lower than having them built instead. With all of this extra capital available to you, you can allocate your money more wisely on things like greater inventory, new machinery, or indeed expanding your business operations.

Tax deductions

As the old adage goes: “there are two certainties in life: death and taxes”. Like it or not, tax is something that we all have to contend with but renting a factory and warehouse can certainly soften the blow. In fact, many business owners don’t realise that renting can actually offer a huge tax benefit. This is a fully tax-deductible expense and well-worth exploring further.

 

Of course, when buying or owning properties, you can only record your expenses through the building’s depreciation costs. That, and some additional costs such as the land purchase or land filling are unable to be reflected in your business expenses and are thus non-tax-deductible.

Save on repairs and maintenance costs

When you rent a factory or warehouse from a reputable company like Frasers Industrial, you can enjoy regular repair and maintenance services. With these services you do not have to worry about repairs and maintenance yourself and can instead rely on our expert staff to focus on the upkeep for you.

 

Not only can these additional services save you money, but time as well. When you own a building outright you are solely responsible for its upkeep – when renting however, the burden falls to us and not you.

 

More precious time

When you own a factory or warehouse, business owners will invariably encounter a wide variety of issues such as:

  • Finding the perfect plot of land
  • Obtaining all of the necessary planning permissions and construction licenses
  • Generating architectural drawings and designs
  • Finding suitable contractors to assist with construction
  • Monitoring the construction process
  • Applying for all of the necessary utilities
  • Having technicians repair and maintain your facilities
  • And so much more

 

These are exhausting and time-consuming problems that you will never need to worry about when renting a factory or warehouse with Frasers Industrial. All of our factories and warehouses are already build in strategic locations so you can simply pick a set-up that suits you and get to work!

 

Greater flexibility to move and expand

As your business continues to grow, a few years down the line your factory or warehouse may no longer be suitable for you. If you own the property outright, then you’ll be in a less desirable position as you will need to find a new buyer and deal with all manner of red-tape and legislation.

 

If, however, you are renting a warehouse or factory, this offers you far more flexibility when handling your future expansions – allowing you to respond to changing demands as and when they arise.

 

Plenty of choice and variety

When you rent a factory or warehouse you get a choose from a wide variety of existing locations, each with their own strategic advantages. Similarly, a pre-made factory or warehouse may be suitable for your needs, or tailored to meet them with additional fixtures and the installation of new machinery.

 

Hit the ground running (less start-up time)

Another great advantage to renting a factory or warehouse is that you can simply hit the ground running, rather than having to wait for a construction project to get the green light and see it through to completion. If you want to continue or kick-start your operations as quickly as possible, renting allows you to do so with less start-up time.

 

Less red-tape and paperwork

Constructing your own warehouse or factory requires a lot of paperwork, permits, registration, and red-tape that can be avoided by simply renting an existing pre-made property. If you’d prefer not to have to worry about setting up applications and utilities such as water, plumbing, and electricity, then renting is almost certainly the more convenient option. Instead, you can dedicate your time and brain-power to simply getting started, rather than all of the bureaucracy that goes with starting from scratch.

 

Conclusion

And there we have it! Certainly, there are some benefits to owning your own factory or warehouse space but ultimately, renting from an established and reputable company like Frasers International can save you an awful lot of time, money, and energy.

 

If you would like to explore our services and available properties further, then please do not hesitate to contact us today. We are always happy to help!

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