I found a building and location I do love. Lots of pluses going for it. BUT the landlord wants as little done to it as possible. This was a nail salon and boutique previously and way back it was a bank; the vault is still there with the door on it. Point is, this place needs a full kitchen, new ceiling, new flooring, windows are questionable, and oddly enough shares heating and air with a neighboring rental space. [She said that isn't in the rent but would be prorated based on our square footage. Probably would be in my favor since I would have ovens, refrigerators and freezers, but of course the other tenant could fuss about his power bill being so high.] Would probably need ventilation for the stove top. Needs false walls brought down and others installed to suit my needs.
SO with that being said, am I expected to do all improvements, buy equipment, have all that installed, then pay her her monthly rent that she currently wants on her unimproved older building. OR do everything and see if she will lower the rent since I put so much of my $$$ into her space? OR is there another option I am not thinking of. Any general pointer would be appreciated as I am just working up numbers and ideas right now.
Is the landlord saying they don't want to pay for the changes, or they don't want changes at all? If they will allow changes (at your expense), some leases require the space to be left in the same condition as it was. Which for one location I had, meant I had to remove the walk-in, the fire suppression , exhaust, all equipment, walls, sinks etc.. Of course, I took it all to the next location, so not much problem, but nevertheless, a lot of work. (Turns out the next person in that space, rebuilt it almost to what the landlord had made me remove!)
The next location, I had to leave the fire suppression and exhaust system because they were "attached"(which is approx. $40,000.)!! So, these are important details to find out.
Crud! I didn't think of that. I just figured I was improving her property, but I guess only if she rented to another in a food based business. Thank you for that insight.
Make sure that the lease contract specifies percentage of increase every year (unless there is some sort of cap in your area for commercial spaces), because some people see how much better the space is (after you improved it), and increase the rent by a big percentage! They feel they have you by the b**ls since you spent so much money in it and you cannot move out!
Please tread carefully. My ex opened a restaurant. He negotiated the lease with the landlord and the agreement was that my ex would do all the improvements and build out.
At the time, it sounded good since he also owned a small construction company and had a good idea how much it would cost his guys to do the build out. What he didnt plan on was the fact that the city in which his new restaurant was to be located wanted only THEIR "approved" contractors to do all the build out. Well, there "approved" contractors charged about 5 times more than what he originally thought it would cost.
So pls be careful and get every detail in writing and check with the city building inspectors before you proceed.
Thank you. I think between what I am finding out here at home and here on the forum, although I may fantasize about this chance, I am more and more fearful of doing it. I have a small child and DH who works very hard to support us. I hate to spend a bunch of our saved retirement money to find out it was all in vain.