can a landlord for a child care lease ask for $30,000 upfront before they lease out to u? does it make sense?

The guy is asking for $30,000 up front. His intentions with the new build was to design a daycare fore lease (which they are still building right now). Plus, he wants $4630.00 a month for the lease amount. They are not thinking about the person who lease the place furnishing the place and payroll. LOL. help! what can i say to them
In Leasing Property - Asked by Brenda S. - Feb 23, 2012
Report Abuse
Answer this Question

Answer(s)

Gordon D.
Owner/Investor
Peculiar, MO

Day care is a very competive, regulated, labor intencive industry. You have to compete with people running low-cost day care from there home, YMCA running subsidised, to Kindercare's to corporations that have in-house centers. The people who use day care are working mothers' (single dads) whose wages are good but not upper mangament. Survey your area and find the cost of other day cares, run the numbers and find the break even point. Also find if most have plenty of openings, or if they are full up. If "the guy" just wants 6 months ($30k) of upfront lease payments, it sounds resonable. If you don't think so, rent a generic building and put in $30k of remodleing costs.

Feb 24, 2012
Report Abuse
Kyle M.
Broker/Agent
Culver City, CA

The short answer is yes. However you're involved in a negotiation and all things are on the table so to speak. The problem is that it sounds like you are not using a broker to represent you. In my opinion you should take advantage of representation. You get the benefit of a person that knows the marketplace and what is typical and reasonable in a lease negotiation. In addition there is no cost to you. You of course have the final word on what deal terms you are comfortable with. Experienced help and advice is invaluable.

Feb 25, 2012
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question