If you have a commercial property, there will come a time when it will be in need of refurbishment. It is also possible that you have just invested in a property, and that it won't become operational until after you have refurbished it. It is very important that you do some research into what refurbishment is and when it is needed. The cost of commercial refurbishment can be quite high, so you must weigh up this decision very carefully. With commercial properties, it is generally recommended to get an in-house refurbishment team together, who will make decisions in terms of what is needed and how much money is available. Let's take a look at when it really is time to plan for that all-important refurbishment.
1 - If Your Space Is Not Practical
If you have a commercial space of some description, you will be probably be looking at renting out units to individuals or businesses. However, this is only possible if the space you have available is practical for those needs.
1 - If Your Space Is Not Practical
If you have a commercial space of some description, you will be probably be looking at renting out units to individuals or businesses. However, this is only possible if the space you have available is practical for those needs.
What do you do with a 100,000 sq ft industrial unit with offices and mezzanine floors these days? In the current market, it might be more sensible to reconfigure the space and split the property into several more attractive units.
2 - If The End of the Tax Year Comes Up
You have to also bear in mind that capital expenditures on large commercial properties influence the taxes you have to pay. Hence, you have to make sure that you do your refurbishment at the right financial time. After all, you will want to make sure it costs you as little as possible.
You have to also bear in mind that capital expenditures on large commercial properties influence the taxes you have to pay. Hence, you have to make sure that you do your refurbishment at the right financial time. After all, you will want to make sure it costs you as little as possible.
Importantly, after 1 April 2014, keeping track of your capital allowance claims will be more crucial than ever. Qualifying expenditure must be placed into a mandatory pool prior to the sale of any commercial building from next April, so it makes sense to get into good habits now.
It is recommended to always speak to your accountant and tax adviser before you even consider a property renovation or refurbishment of any kind. Doing this could save you a whole lot of money. Additionally, it will shorten the length of time before you see a return on investment as well.
3 - If Your Building Is Falling to Pieces
A lot of people who see that their building is really starting to fall to pieces would consider selling up and purchasing something new, rather than refurbishing. One of the reasons for this is that they don't have the inconvenience of having to close offices during refurbishment, or have to work in a building site. However, there are numerous reasons as to why this may not be the best idea.
First of all, it is not guaranteed to be cheaper and more convenient to move properties. Indeed, with commercial properties in particular, you may struggle to even find a building that is fit for purpose. Secondly, and perhaps most importantly, you must take into consideration the green aspect as well.
3 - If Your Building Is Falling to Pieces
A lot of people who see that their building is really starting to fall to pieces would consider selling up and purchasing something new, rather than refurbishing. One of the reasons for this is that they don't have the inconvenience of having to close offices during refurbishment, or have to work in a building site. However, there are numerous reasons as to why this may not be the best idea.
First of all, it is not guaranteed to be cheaper and more convenient to move properties. Indeed, with commercial properties in particular, you may struggle to even find a building that is fit for purpose. Secondly, and perhaps most importantly, you must take into consideration the green aspect as well.
Reuse, recycle, rethink. These have to become things we get more skilled at in the 21st century. When we do new build we should do so with an eye to longevity and adaptability.
Additionally, refurbishing in a way that is ecologically friendly could potentially help you incur some more tax advantages. Taking that into consideration, refurbishing often works out a lot cheaper than purchasing a new property, even if it means you have to close shop for a while. However, as always, it is incredibly important that you work together with a really good contractor who understands the needs of your business.