Becoming your own tenant, instructions for use

BFM Business’s guest, Stéphane Desquartiers, Director of SD Conseils et Formations, discusses the benefits of becoming your own tenant.

There can be some attractive aspects to becoming your own boss and therefore your own tenant. A fairly classic system explained by Stéphane Desquartiers, director of SD Conseils et Formations, guest of Lorraine Gaumot at Tout Pure Invest on BFM Business on March 26.

“The principle is like this: You’re a business manager, your business is doing well, you pay your expenses, you pay rent, of course, but you pay rent to a third party and, at some point, You ask yourself why don’t you become the owner of my offices, my shop or my premises.

Then two solutions are available:

“Either it is the company that buys. But, even better, you can buy on an individual basis, either directly or through SCI with your partners or possibly your family. You buy the premises that best suit you And you rent them to your company “, summarizes Stéphane Desquartiers.

But what are the real benefits of becoming your own tenant?

“You know the tenant, he’s quite good – be careful the rent has to be within the market – but the advantage of commercial premises is that we still have returns which are higher than housing, for example, which we find much higher. Reach without problems 6-7% profit is that after 20 years, when your credit runs out, you are the owner of an office or shop paid for your activity. Whereas if you remain a tenant , then after 20 years, you no longer own your premises.”

And what are the differences compared to purchasing a rental from a third party?

“The advantage of this type of self-reliance is that you control the risk a little more because you are your own tenant. It allows better control over the risk aspect, rental shortfalls, unpaid debts, how your activity works, but when It’s the right launch, which is why thousands of business leaders practice it.”

There is also tax interest to take into account:

“The classic interests are: If you are concerned with IFI (real estate property tax) you are interested because it is perceived as your professional tool, as a work tool, which comes out of IFI.”

Leave a comment