Rental terms

[redlottie13]

Hi guys so anyone who has seen my posts under previous name (Charlotte313vens) knows I've been struggling for the right premises. My last one was tuned down! (that's 5 I gave lost now grrr)

But I'm taking your advise and thinking positive. My question is what terms would you go in with on your first rental? My last one was:
*5 years initial lease
*Break clause after 3 years
*6 months rent free
*3 months upfront

I have seen a premises but there are 3 people interested!!! will they just go for the highest bid? do they consider each business based on industry? Any advise welcomed as I'm out of my depth with this area!

Thanks xx

 

[RED STAR]

Hi guys so anyone who has seen my posts under previous name (Charlotte313vens) knows I've been struggling for the right premises. My last one was tuned down! (that's 5 I gave lost now grrr)

But I'm taking your advise and thinking positive. My question is what terms would you go in with on your first rental? My last one was:
*5 years initial lease
*Break clause after 3 years
*6 months rent free
*3 months upfront

I have seen a premises but there are 3 people interested!!! will they just go for the highest bid? do they consider each business based on industry? Any advise welcomed as I'm out of my depth with this area!

Thanks xx

If others are after it, it will become a bidding war, and the owner will end up calling the shots!
If all things were equal, as a landlord myself, I'd WANT the in - going tenant to do well.
BUT, I also run a business, with bills to pay and profit to be made.

Firstly, find out the terms on offer,.....THEN negotiate!
Six months rent free would be EXTREMELY generous......
I'd only offer 2 months , unless there's work needing doing on the premises and they offer to take it on.
In which case, possibly 3 months rent free.

 

[redlottie13]

These are the terms

*6 years
*Full insuring and repairing basis (roof and windows excluded)
*Upwards only review after 3 years according to RPI increases if any (with legal fees to be payable by tenent)

 

[RED STAR]

That's a big chunk of building!
I own a 3 story building, hair dressing in the shop, and I rent out the upper part's....
I'm now in the process of selling it!
The maintenance has become a BIG issue for me, there is ALWAYS something breaking down/falling off or wearing out.

To fit out a salon can end up costing ALOT of money, so be sure you can recoup your costs.
I have found the hardest part of running a salon is finding staff.
Be sure you can fill the space, otherwise you'll be paying for unused room's.

 

[redlottie13]

Haha after seeing your posts I have decided No!.... Im doing rent a chairs /room only! For now anyway I have worked with so many untrustworthy people before I just can't trust anymore.... At least for a while.
I'm lucky in the sense I have a lot of favours and mates rates to call in so it should be cheap... Ish!
What do you recommend on terms? Xxx

 

[redlottie13]

.... Also full repairing and insuring basis? Is building insurance astronomicle? X

 

[Gina Ballerina]

£8k pa seems very reasonable. Where in the country are you?
My lease is 5 years, rent increase at 3 years and it's full repairing and I pay the building insurance.
I had no rent free period and I had to pay the first 12 months up front!!!
I had to pay my landlords legal fees in setting up the lease as well which cost thousands

 

[redlottie13]

Yeah I had a landlord change the terms last minute wanted 7k upfront I just couldn't do it!

What ball part figure would insurance be? X

 

[redlottie13]

North Birmingham /Litchfield x

 

[Gina Ballerina]

The rent went up the minute I was interested as well.
I'm not sure to be honest Hun as I think it goes on the size, i also had to pay a special window insurance too.
My building has 4 businesses in it (all with their own front doors) and the landlord bills me my portion of the insurance.

 

[redlottie13]

Ah I see luckily this landlord will cover windows (just in case there are naughty drunken buggers who fancy a fight with their reflection!) and they cover the roof! Thankfully.... It's all a Bit daunting though eh

 

[Gina Ballerina]

I'm not even ground floor, I can't ever see how my windows would get broken, so infuriating

 

[nikkisbeauty]

My lease was all repairing lease and insurance on premesis, I initially had 3 year lease with get out after 1, 1 month rent free 3 months deposit and then I paid monthly x

 

[RED STAR]

I think my insurance is around £500-£600 per year.
Don't forget your music licence x 2, treatment licence, fire safety, PAT testing,waste removal,water,gas,electric,broadband/phone bill....and not forgetting the window cleaner.