To Rent or Not to RentThere is always a lot of debate around the topic or owning or renting, anything. We all immediately think that owning a home is the right choice, because why rent it when you can own it, right? Or maybe wrong? I will discuss the pros and cons of renting a medical office, medical equipment, and office furniture in more detail. Medical Office or Head Office The advantages of leasing a medical office over owning are the freeing up of working capital. With the money freed up from paying rent and not a property payment, you can focus more on other aspects of the business. Additionally, the ability to borrow funds, if necessary, is there, unlike if you have a commercial mortgage. A second benefit of renting a medical office is that you have a choice of where to rent. A lease payment can and should be less than one if you purchased the property. Giving you the opportunity to rent in an ideal location, with high traffic and far from the competition. Finally, when you are not the owner, you are not responsible for maintenance on the exterior of the building and for some leases, you are not responsible for the interior. Regardless of how your lease agreement is written, you won't be responsible for at least the exterior of the building, freeing up more working capital. The downsides to leasing a medical office are that you lose the tax deductions that come with owning a commercial practice. mortgage. Deductions include mortgage interest and property taxes. Another disadvantage of leasing is the possibility of generating additional income by becoming a landlord, that is, owning the building and renting office space. Owning an office space can also fund your retirement. By owning the office, you are able to let the p...... middle of paper ...... a decision. After reviewing the pros and cons of renting a medical office, I recommend that you proceed with the sale of the headquarters building and re-rent it from the owners. There are more advantages to renting a medical office than owning one. I also recommend that medical equipment be rented and not owned. Technology is changing too quickly for any medical company to keep pace with new medical equipment. But I recommend that all office furniture be purchased outright and not rented. The risks of renting the furniture and not buying it are too uncertain. In conclusion, renting has many advantages and disadvantages. Leasing works for some things, but not all. In the healthcare field, it is in our interest to rent a medical office and medical equipment but not in our advantage to rent medical office furniture..