Do you rent part of your building to another company?

[amygeorge]

I have a building that will house my cleaning business. I don't need the whole space for me and would like to lease part of it to another business. Does anyone have a similiar situation? I have too many questions to list here. I have an appointment with a real estate agent - but would like to visit with someone here if possible.

Thanks, Amy

 

[Spurlington]

Real estate agent might require a monthly commission.

 

[Cleanworks]

You need to sit down with a real estate lawyer. There are a lot of complications that can arise. You need a good contract specifying all the conditions. It changes whether you own the building or rent. Some of the important things are, exactly space is being rented and what parking areas. What kind of business, does it meet zoning requirements, do you have permission from your landlord in writing to sublet and to who, signage, damage/modifications to building, noise, environmental considerations, term of lease, cancellation clauses, it goes on and on. Don't forget insurance, contents and structure.

 

[Mikey P]

A rug shop rents part of their building to us.

 

[amygeorge]

You need to sit down with a real estate lawyer. There are a lot of complications that can arise. You need a good contract specifying all the conditions. It changes whether you own the building or rent. Some of the important things are, exactly space is being rented and what parking areas. What kind of business, does it meet zoning requirements, do you have permission from your landlord in writing to sublet and to who, signage, damage/modifications to building, noise, environmental considerations, term of lease, cancellation clauses, it goes on and on. Don't forget insurance, contents and structure.

Thanks for your response. I do own the building (actually, the bank does...) and it is totally gutted and ready to build to suit. I have contacted a commercial real estate agent to begin the process, but not a real estate attorney. I will add that to my list of things to do.

 

[amygeorge]

A rug shop rents part of their building to us.

did you go thru major hoops to get in - ie. contracts, etc. Do you part your van and equipment there>

 

[Ron K]

I would talk to the city hypothetically and find out their requirements first to see if you can. Then proceed. We lease out part of our building . Less then 50% ,which might mean something to you too.

 

[TomKing]

Amy
Are you going to use the address of the building for SEO listings?
Does it have 2 addresses?
If you intend to use the address for your marketing online I would put in writing that a renter can not use the address for any reason.
Make it so they must use a local post office box.
2 companies on the same address will mess up your search.

 

[The Great Oz]

Part of the process would be to add an address for the space you rent out. Our building has four addresses, but we occupy three and rent out one.

If the post office isn't interested in giving you a second address, call the rental area something like "Suite B."