This is an extremely important decision and it can define how successful your business is going to be.
In my opinion the decision to buy or rent attributes to about 80% of your success. Even if you do everything else perfectly, your business will suffer if you make a bad decision with renting or buying a property.
Buying a property is a tempting idea, but I don’t recommend it unless you already have experience as a real estate investor/developer.
For most, you are beginning to build a business on a relatively new hospitality concept and it’s risky to sign a mortgage for 10-15-20 years without having some experience and numbers on running the space.
After operating your space for a while, you’ll have a much better idea of what exactly you want to buy and you’ll also have the numbers to show investors or banks.
Unless you have your own property, renting should be your “go-to” option and there are endless possibilities. Here are some questions to consider:
This is the best advice I can give you if you want to make a good deal. Think like them, don't try to idealize the situation. Consider the following points:
Of course, I'm simplifying a bit here. There is no step-by-step guide to executing a fantastic real estate deal, but I’ve shared a few key points with you to get started. You will probably make some mistakes but there is a high chance that you can avoid some of them if you read carefully.
Try to have more leads for the properties you want to rent. Talk to many people, research, hire a good lawyer for the contract and don't fall in love with a property you want to rent. At least don't show it to the landlord.
This article is part of the guide where I'm sharing tips on starting a coliving business.
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I'm the founder of Surf Office, a one-stop shop for anyone organizing company retreats.
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