Rent or Buy?

There ARE choices
It should come as no surprise if I suggest that the primary interest of most real estate agents is to sell you something.   Only on rare occasions will they show any enthusiasm if you're looking to rent a place. In any case, apart from the relatively small commission they'll earn, they're unlikely to be much aware, if at all, of where to find you a house for rent. At most, they may have sold a home ahead of the buyers being ready to move into it and may, as a service, be interested in finding a tenant for the intervening period. Even if you're talking of an apartment, a townhouse, or a condo, though, their emphasis is still going to be on what you could buy rather than helping you find a place to occupy temporarily.
Yet there is an argument for starting out by renting something instead of buying it. If, for example, you don't expect to stay put in a job or on an assignment, it can make sense to pay rent rather than taking on the expense of a mortgage. In fact, you're unlikely to come out ahead financially if you need to resell whatever you've bought less than three years previously.  The generally expected increase in property values isn't too likely to let you get all your money back in so short a time.
I am, of course, considering the residential market rather than the commercial one -- and this is something I'll come to in the second half of this set of Shots across the bow -- but let me first offer a thought or two about finding a rentable home.

Where to look
The main source is the local newspapers. They all have Classified Ad sections that list homes for rent, usually quoting the required rent as well as a contact phone number. You are going to be on your own in having to look at them and deciding how suitable they are in term of location and accommodation. Nevertheless, there's nothing to stop you from driving by several places and reducing them to a short list.
Needless to say, it will help if you have some familiarity with the area(s) you're looking at. However, you can get some sense of each neighbourhood and its surroundings and facilities by general observation -- a point that's really no different than when you're thinking of a purchase, is it?
In addition, it may do no harm to visit some of the larger apartment buildings. They often have a sales staff (or superintendent's office) through which you can see what's currently available and, at the least, become aware of some standards you can look for elsewhere.

Making sure of value
In renting a house, you also need to consider the same range of factors involved in buying one. A key factor, however, is your rapport with the landlord and how well he/she takes care of the place. Naturally, you aren't going to be able to arrange a home inspection, but you should be comfortable with the way -- and speed -- in which any maintenance breakdowns are going to be dealt with. Enough owners of rented property can give the impression of simply being in it for the money, but you owe it to yourself to make sure that you get sufficient return on the cash you're going to pay out each month.

Easing your way into the market
Especially if you're relocating and moving to a community that you've had little acquaintance with hitherto, it may be advisable to begin by renting a house -- or perhaps more particularly an apartment. You'll sort of waste your money on rent for a while, but it will give you chance to know where the best places to live happen to be, not to mention having more time to look for a permanent residence.
A good (buyer) agent is likely to help you from the beginning in this regard, but it can sometimes be less than convenient to keep making trips from your present locale to look at available listings in the intended new area.
You can, of course, make an offer conditional on selling your present home beforehand, but this, too, isn't always very practical.
In effect, deciding to start out by renting can reduce the risks involved in the contentious question of Buying or Selling First (about which I fired a few salvos as far back as in my July 2004 newsletter).


The commercial difference
When you're considering a business location, the idea of renting (although it's usually referred to as leasing) can be a more serious -- and frequently wiser -- choice.
One relevant point is the generally limited selection you can find. Some individual stores and smaller buildings can be leased or purchased, but most large scale properties give you no option. They'll be either owned by a main landlord and probably handled by a property management company or they'll be well beyond the size and space you require.
Sidestepping the capital required to purchase a building that's larger than you need, there's a widely held belief that you're better off using your money in your business. You may pay more for your accommodation by leasing it, but the money you don't put into a mortgasge (let alone an outright purchase) should be able to earn you a great deal more if it's invested in materials, labour, and equipment (in theory at least!).
It isn't a perfect analogy, but the increasing dependence on leased (and sometimes maintained and non-employee driven) trucks as opposed to owning (as well as looking after and staffing) them is an example of the outsourcing principle that numerous commercial entities employ nowadays.

Where to look
The local MLS database will invariably include commercial listings, many of them focused on leasable premises. Moreover, among most residential brokerages, there are agents who concentrate on business listings. Admittedly, they may prefer to sell you a place, but they certainly represent a variety of commercial owners who have vacant space available. Finding these agents can be as simple as calling the main real estate office and asking to speak to their Commercial Department.
The Classified Ad sections in the local press can also direct you to potential accommodation. And for good measure, you're likely to drive past Space For LeaseAvailable signs when touring the commercial or industrial sectors of a community.

Making sure of value
The factors that help you find suitable commercial accommodation are again similar to those you'll apply when you're looking for a house (be it for rent or for sale), but location calls for some special attention. Like as not, accessibility and traffic are going to influence your business success. It therefore behoves you to critically consider the specific area and the neighbouring tenants.  The buying public has some fondness for One Stop Shopping and you should be both reachable and surrounded by businesses of more or less the same nature. For example, it's no coincidence that many car dealerships are found in what's often called Gasoline Alleys. In turn, even the Big Box Stores tend to be close to main shopping centres. Perhaps the corporate objective is to Stand Out From The Crowd, but being within close proximity to the crowd is no less important.
Otherwise, the lease terms are worth examining closely.  The basic rent is one thing, but the additional charges (often referred to as CMI) can make your total cost much higher than you expect. You're entitled to know -- and should ensure that you're aware of -- the apportioned cost you'll incur for the landlord's expenses in building insurance and maintenance, not to mention snow clearing, grass cutting, and other services related to upkeep of the "common areas." In some cases, too, you may be subject to a payment based on your gross sales figures, particularly if you're in the retail business. It's clearly better to find out your "true" accommodation costs sooner than later!


A few final thoughts
The Rent to Own and Renting With An Option to Buy are two other possible approaches to both the residential and commercial markets.  There are pluses and minuses involved in each of them, but occasions can recommend consideration of them. To some degree, I touched on the ideas in at eaast one other earlier newsletter. However, perhaps I should resurrect them as a focus of my forthcoming April (or maybe May) issue.
Somewhat related, too, is the compromise involved in buying a place that you can rent out in part and thereby underwrite your accommodation cost. This, though, is another topic I can deal with at a later date.

In the meantime, let me wish you a Happy After St. Patrick's Day and a Happy Before Easter Weekend.

With my customary warmest regards.

website: http://www.duncanpollock.com