Renting a warehouse - how hard can it be?
Discussion
I like my toys, but I don't have sufficient room for them.
There's a warehouse for rent just down the road from me, nothing special, it's not huge but it's far bigger than what I need.
What sort of extra expenses would I be faced with, council rates? Hidden small print tax?
Other than having indoor storage units/bays, I'm pretty much out of idea's what I could use the rest of the warehouse for, what would you suggest?
There's a warehouse for rent just down the road from me, nothing special, it's not huge but it's far bigger than what I need.
What sort of extra expenses would I be faced with, council rates? Hidden small print tax?
Other than having indoor storage units/bays, I'm pretty much out of idea's what I could use the rest of the warehouse for, what would you suggest?
As above, really. General maintenance and repair to warehouse fabric together with, where applicable, a proportional contribution to site-wide service charge (e.g. resurfacing roads, winter gritting), business rates. Will obviously need insured and presumably services costs although would imagine electric, gas, water would be minimal. You'd be liable for delapidations on ending the agreement.
If it's been sitting you may get a rent free period for pushing out the rental period. E.g. we're currently looking at 6 months rent free for 10 year with five year break clause, 3 months rent free for 5 years with a 3 year break.
If it's been sitting you may get a rent free period for pushing out the rental period. E.g. we're currently looking at 6 months rent free for 10 year with five year break clause, 3 months rent free for 5 years with a 3 year break.
Byff said:
It's rateable value is £33,750 - is that how much I'd get charged a year if I rent it? That's extortionate surely - although the floor space is 14,000sqft so squeezing a go-kart track in might be possible.
I think it'll be around £15k in rates.14,000 sq ft. is quite a size. 2,500 sq ft. would be more than ample for at least 6 cars and may be eligible for rates relief too.
Have you checked whether the owner and your insurer allows the use you're wanting it for? A lot won't cover anything vehicle related.
Also make sure you get good high resultion photos of every inch of the inside and outside before signing the forms. The letting agents make their money from the 324 pages of repairs they present you with when you hand the keys back.
Also make sure you get good high resultion photos of every inch of the inside and outside before signing the forms. The letting agents make their money from the 324 pages of repairs they present you with when you hand the keys back.
ModernAndy said:
I think it'll be around £15k in rates.
14,000 sq ft. is quite a size. 2,500 sq ft. would be more than ample for at least 6 cars and may be eligible for rates relief too.
I quite agree, it's far too big for me but there must be opportunities to use a big a space, I just haven't thought of it yet....14,000 sq ft. is quite a size. 2,500 sq ft. would be more than ample for at least 6 cars and may be eligible for rates relief too.
I rented a warehouse for a year as a big garage. It was flipping awesome - but expensive.
Things to consider - assuming it's from a pro landlord and not your farmer mate's outbuilding:
- multiple year minimum tenancies are standard. I negotiated mine DOWN to 3 years
- BUSINESS RATES! Work this out first, each council can vary wildly, two similarly priced and sized units in neighbouring counties, one worked out almost double the price of the other after business rates because it was slightly too big to be eligible for relief
- service charges etc
- they may be picky about what you're allowed to do in there even though it's no harm to anyone
- unlike a residential tenancy you are responsible for all maintenance and repairs
- it's your responsibility to return it in the standard it was when you arrived at your expense
However you do have a lot more freedom such as normally not needing permission to fit it out i.e. throw up stud walls and repaint and so on.
Just beware the costs, if your plan to use it for something else to cover some of its costs doesn't pan out it can become a real anchor very quickly and the landlord will likely have little sympathy.
Things to consider - assuming it's from a pro landlord and not your farmer mate's outbuilding:
- multiple year minimum tenancies are standard. I negotiated mine DOWN to 3 years
- BUSINESS RATES! Work this out first, each council can vary wildly, two similarly priced and sized units in neighbouring counties, one worked out almost double the price of the other after business rates because it was slightly too big to be eligible for relief
- service charges etc
- they may be picky about what you're allowed to do in there even though it's no harm to anyone
- unlike a residential tenancy you are responsible for all maintenance and repairs
- it's your responsibility to return it in the standard it was when you arrived at your expense
However you do have a lot more freedom such as normally not needing permission to fit it out i.e. throw up stud walls and repaint and so on.
Just beware the costs, if your plan to use it for something else to cover some of its costs doesn't pan out it can become a real anchor very quickly and the landlord will likely have little sympathy.
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