Sublet Opportunity Questions

AustrianOak82

AustrianOak82

New member
Joined
Sep 26, 2014
Messages
324
Reaction score
0
I was recently contacted by an aquaintance of mine. He owns a business with a shop and was wondering if I was interested in using his shop for my business since he rarely uses it. I am interested and we discussed the possibly of a per-client % or something to that effect, since my volume is low. It would be much more convenient that working out of my house, so I guess it would depend on what the % was.

Has anyone done something like this before? Any suggestions or things I should address when we meet later today? Advice? Thanks guys.
 
I unfortunately don't have an answer for your question but I am looking to get started in this business working out of a home studio as well but can't find a whole lot of info about it. Beyond the usual obstacles of licensing and whatnot that vary by state, county, ect. I'm concerned about attracting clients and how they may feel about coming to a residence. If you've had success doing this and would be willing to talk more to me about it shoot me a PM.
 
First, I would never link my rent to my income. The more you make the more the space costs you? What? Just no.

I would do the rent by day/week/month, depending on what you want.

Figure out what it will cost you under a regular rent structure, then figure out if it makes economic sense.
 
Whatever you do get it in writing. Let's say you start getting busy and he decides he's going sell his business which includes your space, now you're stuck looking for a new shop.
Ask me how I know.
How are the utilities divided? You paying for electric, heat etc..?
Is your space separate from his? Can you leave your equipment around without his employes snooping around?
 
Scott@IncrediblyDetailed said:
First, I would never link my rent to my income. The more you make the more the space costs you? What? Just no.

I would do the rent by day/week/month, depending on what you want.

Figure out what it will cost you under a regular rent structure, then figure out if it makes economic sense.
Click to expand...

I don't know. This might be beneficial for a company just starting out and trying to grow its client base. Instead of dealing with a massive fixed cost (rent) from the beginning, you can utilize a variable cost structure that wouldn't hurt as bad during slow times. Perhaps the contract could be negotiated to "cap" the rent costs at a certain amount per month so that if your business exceeds a certain volume of sales you can begin to capitalize on the benefits of fixed cost rent and realize a higher profit. This would have two benefits: Your land lord would be getting a fair value for their property, especially when you are busy. You would be motivated to grow your business as fast as possible to start realizing increasing profits once your "full rent threshold" has been met.
 
^ Exactly. I feel like this would be a good move for my business and being based out of a brick and mortar shop would be a huge benefit. I understand the points made on a per client basis, I am just worried to enter something at a fixed monthly since my volume is all over the place. I wouldnt want to be committed to anything, since sometimes I work a lot at my regular job and don't have time for details. I would prefer to "pay as I use". The other question is insurance, I have business insurance but it's based out of my house so guessing I would have to transfer the coverage.
 
smf said:
Whatever you do get it in writing. Let's say you start getting busy and he decides he's going sell his business which includes your space, now you're stuck looking for a new shop.
Ask me how I know.
How are the utilities divided? You paying for electric, heat etc..?
Is your space separate from his? Can you leave your equipment around without his employes snooping around?
Click to expand...

Not sure that would be an issue or if there would even be a contract. If he moved or whatever, I would just use my garage again. The question on the equipment I plan on asking, he is a one man operation with the detailing (and does it PT as well) so I wouldnt forsee it being an issue.
 
We met up yesterday and went over everything. Sounds like a great opportunity. There wouldnt be a contract or commitment, it would be more so on a friends level. We discussed a flat monthly fee and also a percentage of the detail cost that I charge. That negotiation is still in the works. I'd like to do a percentage of each detail with a cap at a certain amount. We would essentially keep everything seperate, just partner up in a way since he is looking for help with overflow work.

It led me to a lot of questions. He has insurance on the place, but I am wondering if I could just transfer my business policy to his location. I'd rather have my own policy I feel like. Are there any issues with me listing my location (DBA, mailing, Google, etc) as his location address? Any issues with two businesses being listed there?
 
your thoughts on the insurance seem to be a valid concern. give your agent a call and see what they tell you.for me I would feel better knowing I had my own policy. one question I would have is do you ever see a time when the owner has the garage tied up and you be unable to use it, leaving your client having to reschedule and you out of some case for the day ? may want to have a conversation if you have not done so yet.
 
You must log in or register to reply here.
Back
Top