This articles about home office conversion comes to Dot Property from Lazudi Commercial.
Office space for some businesses is considered necessary as they may need space to operate their business especially if they need to register their businesses; an address would be required. That said, building or buying an office building will require a large sum of money. Thus, turning a house into a home office becomes an attractive alternative as it can be more cost-effective.
Here are two tips that businesses should consider when changing from home into a home office.
Type of businesses
Different types of houses can be turned into offices. Each house’s limitations depend on house types or surrounding environments, which can be seen below.
Townhouse
There are often restrictions on parking spaces. Therefore, the recommended business type for a townhouse is a business that is in direct selling without a need to keep the product inventory. The supplier can deliver the products to the customers on their end. The office may only be for the preparation or storage of documents.
Detached house
This property has a lot of privacy and large usable space for residential and commercial purposes. Most detached houses tend to be located in the suburbs, which may not be so convenient for business partners to commute to the office. Therefore, the nature of businesses suitable for using a detached house as an office is businesses with 2-3 employees on-site at the office. In contrast, the rest of the employees are salespeople who do not have to stay in the office.
Commercial building
This type of property is always situated in a good location convenient to travel, such as on the main road and has several floors of usable space. A commercial building is suitable for businesses that require partners or customers to contact or buy-sell businesses.
Different options for businesses to turn homes into a home office
When we find the right house to turn into home offices, there are different options as follows:
Rent
This is the first option for start-ups as they have to see the trend of their businesses, whether it will be profitable or loss. To buy or construct a house would be too risky, so renting is an option that uses less investment.
Buy
This option is suitable for those who receive a fixed income and are financially stable, as they will be responsible for paying a monthly mortgage loan. This is suitable for businesses that are becoming stable. Buying is an attractive option because you get to own the property. Businesses must prepare the following document to obtain a loan:
- A document stating that they have been in business for at least 2 years
- A bank statement for at least the last 6 months and commercial documents such as purchase and sales invoices, among others
Build
This is suitable for those who want a specially designed home and office layout or own land. These are documents that need to be prepared if you want to build a home office:
- Contact the contractor to design and agree on the price and construction contract. The contract usually specifies the conditions for reimbursement of construction costs in installments according to the progress of the construction.
- Apply for building permits from government agencies in the area, such as district offices, by bringing the plan layout to apply for a building permit.
- Apply for a loan with the bank; in addition to financial documents, other documents must be prepared, such as land layout, building contract, and construction permit.
Using a house as a home office can benefit the long run. Still, businesses should take into account various limitations according to the nature of the house, location, and business type. So, it is vital to be well-prepared and research information before finding your home office.
If you want to know more about the home office or other commercial property services, please contact our Lazudi Commercial team and we will be more than happy to help!