Tuesday, June 7, 2022 / by Jeannette Johnson
When you own and operate a business out of your home, you have to make sure your living space and commercial space make it easier for you to juggle home and work responsibilities. According to the Small Business Administration, nearly a quarter of small businesses are home-based. If your home isn’t large enough to house a space for your business, you may need to upsize to a larger property.
What to Look for in a Property
Consider moving to a larger home that has a separate space already set up for a home-based business. Some properties offer potential buyers an established commercial space in a different part of the house, such as the basement, addition, garage, or guest quarters.
If you can’t find a home that is already set up for a commercial space, keep looking for a property that can accommodate your space requirements. An in-law suite, finished basement, or detached garage may be able to house your business needs with some remodeling or reconfiguring.
Buying a New Home
Next, you can start researching neighborhoods and potential house leads for properties that meet your needs. You also have to consider the type of business you run from home. If it’s a storefront, you’ll need to search for a space that gets heavy foot traffic. It’s important to get help from a real estate agent with experience in residential and commercial properties. You may also want to investigate mixed-use properties that combine residential living spaces with a business or office area.
Financing a Mortgage
Financing your home purchase may also be a different experience than buying a traditional home. Business owners may not always qualify for a conventional loan if they take advantage of deducting their business expenses on their taxes. When business operators deduct a lot of expenses, their income appears smaller and makes it harder to qualify for financing. They may want to look into getting a bank statement loan or another type of financing option that looks beyond their personal or business tax returns.
Insuring Your Property
Another expense you want to make room for in your budget is insurance. Your mortgage may include your homeowners' insurance policy, which only covers structural issues, injuries on your property, or the theft of belongings. You can buy a home warranty policy to cover issues from your home’s systems, such as HVAC or plumbing. A home warranty is a policy that renews each year and can help cover the costs for repairs to your appliances or major home systems. Find home warranty reviews to help with the decision and one that you can afford.
Designing a Home Business Space
After you find the right home, you can start working on creating a home office space for your company’s needs. Your office space should be comfortable and incorporate ergonomic practices for your type of work.
Optimizing Your Square Footage
You may also want to do a remodel of the space, such as add a home addition or update an unfinished basement to accommodate your business storage and operations. The cost of expanding your home may be a deductible business expense, depending on the IRS rules for home businesses.
Your growing home business may become more successful if you upsize your home for something larger and more accommodating. You can find the right property where you can live and expand your business. In Portland, Vancouver, and Salem, The Sadle Home Selling Team can help. Reach out today.