Search Results for "lease"
What’s the best way to estimate space needed for a new retail store?
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I’m in the process of writing a business plan for a new retail store (gift/novelty/school supplies). How do I figure out how much space I will need? I don’t want to lease a space that’s too big for a startup, but I would like to have enough space to display things in an organized/unclutttered way.
Sell and Rent Back
When It Comes To An Office Lease, It’s ALL Fine Print
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Last week we looked at a few of the things you should consider before leasing that first office or storefront for your business. To recap, you should not only consider the old standard “location, location, location,” but also consider things like sufficient parking, the number of employees who will be working onsite, and future growth projections. I stressed that it was important not to get caught up in the moment. You should take your time to find the space best suited for your business for the long haul, not just for today.
This week we’ll discuss the most important aspect of the process: signing a commercial lease (insert dramatic music here). One of the biggest mistakes many entrepreneurs make when leasing commercial space is not reading the lease. Forget reading the fine print. When it comes to a lease its ALL fine print.
Don’t believe me? Let me tell you the true story of my friend, Homer, whose name I have changed to protect the ignorant. Homer signed a two year lease on a suite of offices for his business. As the owner of the business Homer signed on the dotted line and agreed to personally guarantee payment of the lease and to abide by its terms. Homer moved in and it was business as usual until the end of the two year lease term drew near. It was then that Homer discovered that failing to read the lease was going to be a very costly mistake.
Toward the end of the two year lease period Homer decided to relocate, but when he gave the landlord what he thought was the customary 30 day notice, he discovered that the lease had automatically renewed for another two year term at the 60 day notice point. In other words, Homer didn’t realize that the lease required a minimum of 60 days notice to let the landlord know that the lease would not be renewed. Because Homer did not know that he was required to give at least 60 days notice of his intent to vacate, the lease automatically renewed for another two years. And there was not a darn thing Homer could do about it but reach around and slap himself in the back of the head for not taking the time to read the lease.
What was the landlord’s position when Homer pointed out that he had not read the lease and therefore was not aware of the 60 day notice? The landlord, while sympathetic to Homer’s plight, stuck to his guns and told Homer that he would have to honor the lease, which meant that even if Homer moved out as planned, he was still on the hook for paying the rent for another two years.
Does the fact that the landlord chose to enforce the lease agreement rather than let Homer off the hook make him an evil man? Not at all. From the landlord’s point of view, he had no choice but to enforce the terms on the lease. He had a signed contract that told him his space was going to be rented for the next two years. He had not planned on the space suddenly being vacant. Being a landlord with unrented space is like being a business with no paying customers. Empty space means no revenue from rental fees which means no money to pay the mortgage payment.
As the old saying goes, “It’s just business…”
Sure, any landlord with a heart might feel bad that Homer was ignorant of the auto-renewal clause, but not so bad that they are willing to risk their own financial well-being by having Homer’s space sit vacant. The bottom line is this: whether Homer read the lease or not is irrelevant. Homer signed the lease, thereby agreeing to its terms, and therefore he must hold up his end of the bargain, period.
As of this moment, Homer is relocating his business in spite of not being able to get out of his old lease and he will continue paying the payment on the vacated space for the remaining two year term of the lease or until he can sublease the space. Even then Homer is not fully off the hook because he will still be considered the legal tenant unless his sublessor agrees to sign a new lease with the landlord. Hopefully he will just have someone else making the lease payments.
Again, the moral to this story is READ THE LEASE. Or even better, have an attorney read it for you. I have learned over the years to never sign a legal document of any kind without letting my attorney review it, especially if the document involves money and my first born child.
Here are a few other points to ponder before signing a commercial lease.
How is the lease payment calculated? The most basic equation for calculating a lease payment takes the number of square feet times the cost per square foot, then amortizes that over a 12 month span.
For example, if you have 1,000 square feet and the cost per square foot is $12, the annual lease payment would be $12,000. Divided by 12 months the monthly lease payment would be $1,000. Again, this is a simplified scenario. These days most commercial leases include additional factors that affect the final price, such as rent increases, operating expense escalations, common area charges, etc.
Who pays for what? It’s important that you understand exactly what you are paying for. Are you responsible for any costs other than the rent? Will you be responsible for paying your own utilities, for example? Will you have to pay for parking privileges or janitorial service? Who handles maintenance and repairs?
Is there an escalation clause? It is typical that the lease contain what’s known as an escalation clause that allows the landlord to pass on increased building operating expenses to the tenants. If your lease contains such a clause you should ask for a cap on the amount the lease payment may rise over a given period of time. And if the escalation clause is ever activated by the landlord you are well within your rights to ask for an itemized accounting of the expenses that are being considered as cause for your raise in rent.
What rent increases might there be? One very important factor to know is this: if you do renew the lease how much can the landlord go up on the rent? It is expected that rents will increase as property values increase. If your landlord can rent the space for more than you agreed to pay a year ago, he is within his rights to ask for the increase. However, it would be a nightmare if your rent suddenly doubled overnight. Negotiate the increase before you sign the lease. Most rent increases are calculated by percentage, not by flat rates.
Renewals and terminations. Most leases require that you give a minimum of 60 days notice if you intend to terminate the lease and vacate the property. As Homer learned, many leases also renew automatically for another term unless you give notice within 60 days of expiration. Know when your lease expires and the time required to give notice.
Is a personal guarantee required? What happens if your business goes south and can no longer afford to make the lease payment? Are you then responsible for paying the rent out of your own pocket? Probably so. Most landlords insist on a personal guarantee from the owner or an officer of the business. This means that even if you go out of business you are still personally on the hook for the remainder of the lease.
Finally, clarify all points. You should be clear on every point in the lease. And if you are not, ask for clarification.
Exactly what space are you leasing? Who is responsible for repairs? What common areas will you have access to? Who is responsible for maintaining the little things, like keeping the shared estrooms stocked with soap, towels, and most importantly, toilet paper.
A small detail to consider now, but not when you suddenly find yourself without such amenities at the wrong time.
Here’s to your success!
Tim Knox tim@dropshipwholesale.net For information on starting your own online or eBay business, visit http://www.dropshipwholesale.net
Passive Income
How to break a lease contract that has no clause for breakage?
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I signed a lease contract for a property and now I may need to break that lease. I was unaware that a lease contract could stipulate that it cannot be broken through the period of the lease. Is there any legal basis for me to be able to break a lease contract without the explicit stipulation in the contract that it can be broken.
Also, our landlord lives above us and is VERY loud. When I rent a place I expect reasonable quietness. If that can be used in any way?
Thank you!
Quick Property Sale
I’m thinking of investing on commercial property. However, I still don’t know what happens when an existing lease expires! Does the landlord pay back the amount of lease to the tenent? If so, is it calculated according to the current market value or is it as much as was paid in the first place?
Rent Back
What is the difference between Ask Min Rent and Ask Max Rent on a retail lease?
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In looking for office space for lease, I’m seeing the Rent and Additional rent, which I know is the base and then the taxes/utilities/management fees etc… but on the Rent, I’m seeing “Asking Net Rent Min” and “Asking Net Rent Max”. Why the range?
Sell House Quick
Commercial Real Estate Development
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Numerous things have to be taken into consideration when undertaking a commercial real estate venture. Needed space, location, decisions to lease or purchase property, moving issues, building plans and regulations, consultants, involved fees. All these things must be considered before one delves into the commercial development project.
When deciding on how much space will be required, several things must be taken into consideration. What will be my cost? How convenient is the location to my targeted customer? How about transportation? What about utility availability? One must decide what will be best for the business.
If plans are to lease, it must be noted that your lease will play an important part in the lease negotiation. Although a standard five year lease is usually used by the leasing broker, a commercial lease of 3 years minimum and 10 years is also commonly used. When deciding on how long your lease should be, make sure you think about your business flexibility and the rental rate.
At the end of the lease, it is very likely that the owner of the property has already committed to another customer, so moving issues come into play. Preparatory measures must be executed prior to the move in order for things to go smoothly. This should be initiated at least 2 months before the planned move, starting with negotiations for the move, standard items that will be needed (mailing labels, presentation paper, bank, checks and deposit slips, business cards, etc.), whether or not you will keep the same logo and design for your business, telecommunication services, security systems and so on.
Other things to be considered are, confirmation of telecommunication installation, ordering appropriate packing supplies, scheduling packing and moving, making sure that the freight elevator at both locations are reserved, choosing the moving company (make sure your choice of moving company provides insurance certificate) and make certain you notify your insurance company about the move.
One month before the move, reconfirm your move in and move out dates. Make sure that the moving company has already provided their moving certificate and provide them with your employee’s names for security purposes. The day before the move, walk through the new location to make sure that nothing has been left undone., make your final confirmation calls, be certain you have the keys for the new location, and this is very important, make sure your insurance is in affect.
This article has touched on many of the things involved in the procurement of a new location for your business but even more is involved. The closing of the lease and the arrangements such as, regulations and rules of the building at your new location, noise levels, usage of freight elevators, architectural design services for planning space and the like.
Real Estate Proffessionals
Being that I am a recent start-up I do not have credibility or clout just yet. The equipment I sell can sometimes cost thousands of dollars. Without eliminating customers how can I offer them financing/ lease terms from my e-commerce retail business? What steps would I need to take?
Sell and Rent Back
Buying a Property at Auction in Tenerife
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Auctions in Tenerife - are a pioneering auction company that allows people selling property to come into direct contact with those looking to buy property in Tenerife. Our new and unique online bidding system allows prospective buyers to view property and bid online for any property on offer. There are no closing dates on the auction and all bids are forwarded onto the vendors for their perusal. All successful bids will be notified immediately.
Situated in Callao Salvaje on Tenerife’s south coast, Auctions in Tenerife is a Tenerife company which has been set up by Les Calvert Director of Property-Abroad.com Ltd (UK) and PropertyinTenerife.com one of the largest independent property Portals on the internet with over 50,000 properties featured from over 45 countries.
With over 20 years in the Spanish and overseas property market Les is well placed to offer not only advice on the local property market but also on the wider scale of opportunities across the world. Our aim is to bring Property Auctions in Tenerife out in to the property market arena by holding free and ‘open to the public’ auctions online. We will feature properties for sale by auction from private sellers, estate agents and any other leading institutions be it Residential or Commercial.
Please feel free to browse around our website and if you feel that you would like to try our services for buying, selling or auctioning your own property then contact us now for a friendly chat.
Whatever your needs are regarding buying, selling or auctioning property in Tenerife, Auctions in Tenerife will be able to assist you and with an Aftersales Service second to none you are sure to enjoy the experience of owning a home abroad. In addition to our Auction Property we also have access to thousands of resale and off-plan properties for sale throughout the island.
Some FAQ’s to ponder:-
1. Why buy a property from Auctions in Tenerife?
We only feature properties that represent great value for money in today’s market.
We only feature clean titled properties.
We are the only free and transparent Auction House in Tenerife.
We don’t charge a buyers fee.
2. What are the advantages of buying property at Auction?
The opportunity to acquire a property at below market valuation.
When the right price is achieved, you know it’s yours.
No complicated chains.
Sales are normally completed within 28 days.
A wide choice of properties on which to bid.
Your purchase price is governed by you.
An open and secure method of buying property.
All legal documentation is clean and available.
There are no hidden costs.
There is no hard sell you are in complete control.
3. Who can buy at Auction?
Anyone can buy at our Online Auction. The website is global and anyone can bid from anywhere. All bids are put forward to the owners and once a bid is accepted the sale proceeds from there.
4. How do I bid online for a property?
Bid on your selected property using our Make An Online Bid for this Property link accompanying every property.
You can inspect the property at any time and arrange a valuation if you need one.
Property documents are available for checking in person prior to the sale.
NB: If you are successful you will need to send a €1,000 euro deposit once your bid has been accepted. You will then have a further 14 days in which to make up the remaining 10% deposit of the purchase price
If you are successful then you will be contacted by us to make the necessary arrangements for purchasing a property - we will guide you through the process.
And remember, if you have been unsuccessful then - please try again
Please note that whilst Auctions in Tenerife take every precaution to ensure the property and its details are correct, we can not be held liable for any misleading information given by the property vendor or his agent. Properties are bought via Auction at the buyers risk and the buyer is deemed to have taken legal and professional advice.
5. What is a Guide Starting Price?
A guide starting price is what we expect to start the bidding price from.
6. What is the Reserve Price?
In agreement with the vendor a minimum sale price is set, this is known as the Reserve Price. It has been known that vendors do sometimes lower their reserve price. All reserve prices are in confidence with the vendor.
7. How can I pay for my property?
If you are successful then you will be contacted by us and the buying process will be the same as a normal property purchase in Spain but our team will guide you through the buying process. Purchases can be paid for via a mortgage, loan or cash as you prefer.
8. How do I bid online?
Bidding on line is very simple and straightforward. Search through our auction property and find the property that you would like to bid on. Underneath every property in the auction section is a link to place a bid online “Make An Online Bid for this Property” simply click on this link and complete your details. NB: Your bid will need to be higher than any previous online bid if shown. We will then pass your bid onto the vendor and inform you of their decision. If the vendor accepts your bid we will need your deposit and we can then begin the purchasing process.
9. Can I view the Properties for Auction?
Yes, simply contact us to arrange a suitable viewing date and time.
10. Do you arrange inspection tours?
We do not arrange inspection tours but we can arrange for viewings and assistance with finding flights and accommodation locally.
11. How long before I complete the sale?
The sale process can normally completed within 1-2 months but in extreme cases this can be extended.
12. What are the costs of buying at Auction?
Other than your normal legal costs - which your lawyer will advise you of there are no further costs involved. Auctions in Tenerife do not charge any fees to the buyer and entrance to the auction is free of charge.
Quick House Sale
Terms and Privacy
Posted by: | CommentsTerms and Conditions
Soda Media Ltd. ‘the company’ owns and operates the website ‘www.fastshopsale.co.uk’.
Registered in England and Wales as a Limited Company: Company Number 7396261.
Registered office is 39 Oakdale Road, Nottingham, NG3 7EL.
The term ‘Fast Shop Sale’ or ‘www.fastshopsale.co.uk’ or ‘us’ or ‘we’ refers to the owner of the website or other members in our group or third party investors. The term ‘you’ refers to the user or viewer of our website.
Welcome to our website. If you continue to browse and use this website, you are agreeing to comply with and be bound by the following terms and conditions of use, which together with our privacy policy below govern the company’s relationship with you in relation to this website. If you disagree with any part of these terms and conditions, please do not use our website.
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Benefits of a fast shop sale
Posted by: | CommentsIf you are in need of a quick shop sale, our company can help. Our specialized services are designed to sell shops quickly for those in need. If you need to move quickly for various reasons, or due to personal circumstances our company is able to purchase your flat for cash within a matter of days if necessary. Our services allow you to avoid unnecessary delays, paying extra money and the uncertainty of selling your flat on the traditional market.
Below are a few of the advantages of choosing our quick shop sale services:
Fast Timelines
- Our transactions are in cash, allowing us to process paperwork more efficiently and avoid delays.
- Our professional legal team can process your sale within 1 week if necessary!
- You determine the processing timeline—if you need a sale completed in a matter of days, we can make it happen.
Guaranteed Purchase
- Selling a shop can take months or even years to secure. By securing a cash buyer you avoid the uncertainty of the sale and the difficulties associated with it.
- Our buyers are reputable, professional and have years of experience in the UK. Our organisation has helped nearly 2000 people and has become respected and established.
- Convenient and simple! No more inconveniences, hassles or complications–we make selling your home simple, and convenient!
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- Respected local organisation–We service Scotland, Wales and UK with reliable, professional sales from local buyers who know and understand the area and its clients.
Cost Effective
- Avoid estate agency costs! Processing fees and extra costs are non-existent.
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- Solicitor fees can be covered by us
- Financial costs lowered on your current property. Because of the sale your mortgage payments and maintenance charges can be lowered.
- Free consult–no fees or obligation to receive a quote from us.
- No additional requirements–no extra qualifications.
It is our goal to achieve a quick sale for your property so you can purchase the shop of your dreams, release your acquired equity, lower your mortgage costs or move quickly for other personal reasons. We provide you an alternative to selling on the open market and give you a timely, stress-free, cost efficient, guaranteed solution. Begin the journey by requesting your free quote today!
