1. A lease may shift some or all of the maintenance costs onto the tenant thus increasing operating costs.
2. If circumstances dictate that a business must change its operations significantly, it may be expensive or otherwise difficult to terminate a lease before the end of the term.
3. If the business is successful, lessors may demand higher rental payments when leases come up for renewal. If the value of the business is tied to the use of that particular property, the lessor has a significant advantage over the lessee in negotiations.
4. It offers fixed rate financing; you pay at the same rate monthly thus putting constraints to the business especially when cash flows are not good.
Lellah answered the question on November 8, 2021 at 07:24
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