Home Office vs Rented Office: Which is Best for Your Small Business?

Home Office vs Rented Office: Which is Best for Your Small Business?

Most small businesses start from home. As the business grows, you can stick with a home office or move on to a rented office. But which one is right for you, and what are the positives and negatives of each?

I have worked from home for years, and recently moved into a lovely new office at Hill Street Design House. Having experienced both a home office and a rented office, I discovered what the best (and worst!) parts of each option are.

Socialising & Networking

home office vs rented office

Working from home can get quite lonely if you’re stuck inside by yourself all day. A rented office, on the other hand, offers several opportunities for socialising and networking. You can easily work as a team and collaborate with colleagues or other businesses. You can quickly organise meetings or attend events organised by other members of the office. Even simple things like having a chat with people when you’re on your tea break can make a big difference if you’re a sociable person!


The main negative of rented office space for small business owners is the cost associated with it. Especially when your business is new, office rent can seem like an unnecessary expense if you can work at home for free. You don’t have to pay rent on a home office, but there are some hidden costs. For example, you’ll be using a lot more heating and electricity if you’re at home every day. You’ll need to buy office furniture and you may need to upgrade your broadband or telephone service. However, you can claim some of this back from HMRC as tax relief to help cover the costs of a home office.


Whilst you can, of course, still be very professional whilst working from home, a home office can sometimes appear quite casual. You may find it difficult to separate home and work life (we’re all guilty of working from the sofa in our pyjamas sometimes!). You also might feel uncomfortable inviting clients or colleagues into your office as it’s within your private home rather than a professional office. With a rented office, it’s much easier to separate professional life and personal life, and to keep your office a business-focused environment.


home office vs rented office

A rented office can be full of distractions. Other people can be noisy when you’re trying to work, or they might stop by your desk for a chat when you’re right in the middle of doing something. It’s also easier for people to call you into last minute meetings if you’re in a physical office space with them. But working from home has its fair share of distractions too. You might have pets or kids running around, it can be tempting to switch on the TV and sometimes even cleaning the kitchen seems like a good idea when you want to procrastinate!


When you work from home, there’s no commute so you don’t waste any time. If you’re busy, this extra time is really helpful. If you’re less busy, it means you can have a lie in! If you have a rented office, you will need to set aside time for commuting. But this isn’t necessarily a bad thing. If it’s a short commute, a walk in the fresh air is a great way to get ready for the day. If it’s a longer commute, make use of your time. Reply to emails on the bus, draft up plans on the train, or listen to useful podcasts in the car.

Productivity & Flexibility

With a rented office, you often have to stick to set hours when the building is open. At home, however, you can work any hours you like. That’s very helpful if you have a tight deadline or feel particularly inspired late in the evening. Working from home also allows you to organise your day so it is the most productive for you. There won’t be any distractions from co-workers and you can work around any other commitments you have. In a rented office, things can be a lot less flexible.

Overall, there are definitely pros and cons to both. Whether you opt for a home office or a rented office depends a lot on your business, your personality and your style of working.

I personally loved the flexibility of working from home. But it was quite lonely after a few years, especially in busy times. At some point going to networking events and having meetings with clients or other freelancers wasn’t enough to socialise either. I love that with my shared office I now have the choice between working quietly and having a chat with people. And I can still work from home if I want to – best of all worlds!



To read more about this topic, have a look at these:
Edinburgh’s Best Work-Friendly Cafés
“We” or “I” – Does Size Actually Matter?
Edinburgh’s Best Co-Working Offices
Take a Step Back: Time Management for Small Businesses


Published byDenise Strohsahl

Denise Strohsahl is an Edinburgh-based marketing consultant, specialising in helping small, local businesses get more of their ideal clients.