would you rent out part of your shop?

[mynewride]

i have a 28 x 30 shop in my back yard that one of my co workers would like to rent. would you do it. they are wanting to start building some sort of bomb shelters. anyhow it is going to be a startup business. if you were to rent it out what would it be worth? he will be paying for excess electricity. he says he would just be using it on the odd weekend to fix trucks or the random job. he will provide his own welders and pay for any electrical wiring i have to do to the shop to prep it for him. he will be renting one bay and will have access to the whole shop, however i will always have access to the other bay.

any ideas would be helpful. i was thinking like 175 a month to start and up to 400 if he uses it every weekend. this is a new venture for me. I do know that the wife and i could definately use the extra cash. the loan payment on the property is 570 a month.

 

[BusaBret]

Unless you just need money don't do it. Never deal in money with family or friends

From my dunce stool :cookoo:

 

[05 Busa LE]

Make sure to speak with your insurance company, because you need to make sure you're covered, and, more importantly, you need to make sure that he has adequate insurance (liability, workers comp, etc.). Also, zoning restrictions may preclude a business operation there. Finally, you need to have some type of a written lease agreement that sets rent, days and hours of operation, insurance requirements, business operation permits, etc.

 

[mynewride]

so what if i price it high enough to sway him into another option...then if he takes it, money in the bank? but how high would be high enough

 

[mynewride]

its not really going to be a fully fledged business. this is just to test waters to find if there is some money in it. i would maybe like to be part of it if they can make some money at it. I guess the cost to build is around 5k and the selling price is about 20-25k not installed for the steel bunker. i really dont know much about the business end. ill check with him about the insurance. im not worried about zoning till they sell one of these things

 

[zukracer]

I guess value to me would be how much I would want to be happy if he was out there working all night long for weeks on end to try and make the business work. Unless you have some very clear guidelines and stick to them, he's going to think, just like anyone that "if I'm paying for it, I'm going to use it".

As mentioned, money and friends/family is never a good idea. If he's someone you value having in your life, make sure you weight it all out carefully.

 

[zukracer]

and don't be afraid to just say no. I'd rather my close friends tell me something like "I would love to help you out but lets find some place neutral for you to do this. I dont want something to come between our friendship"

 

[thapp]

definetly check with your insurance..because i work on bikes in my free time. they had to change my insurance and add about an extra 40 bucks a month to it to make sure i was able to cover anyhing in my garage in case of fire,theft .that kinda stuff

 

[880jedi]

If you need more money, will you be looking at him to help?

Establish your business separate first, and if you make a few bucks on the side, wonderful, Don't let him in unless he becomes a partner, (and legal papers needed).

 

[Sous]

No, unless you will be counting on that cash to eat/pay mortgage.

 

[card16969]

unless your hurting for money dont do it, tools always come up missing the noise will drive you nuts because you have no control over it and the people coming and going and you tend to lose friends over it

 

[card16969]

also since hes running it as a business you can get in trouble because of zoning in your community and your insurance can choose to drop you if something happens because a business was being run out of it and you can be at a total loss

 

[mynewride]

he's a co-worker. he works second shift. so he will only be working in the mid morning to afternoons. we discussed timeframes and that 9:00 pm would be a cut off. i will call my ins agent on monday. im basically trying to help them get started. if the thing works out we may all be partners and have a new job. plus if it works out they will have to move to a larger place. this is just for them to test the waters. one other thing that we discussed was that nobody was allowed through the privacy fence. nobody but him and the partner (engineer and sales.) man this thing could be a money making machine if it works...the business that is.

i really appreciate your views. now im really on the fence. my shop is already insanely insured for my tools. i have 20k just to cover my tools if they were to come up stolen or if the shop burned to the ground. yes i pay extra for it, but man ive been robbed before in my life and will not go down that road uninsured again.

 

[Busa1166]

i have a 28 x 30 shop in my back yard that one of my co workers would like to rent. would you do it. they are wanting to start building some sort of bomb shelters. anyhow it is going to be a startup business. if you were to rent it out what would it be worth? he will be paying for excess electricity. he says he would just be using it on the odd weekend to fix trucks or the random job. he will provide his own welders and pay for any electrical wiring i have to do to the shop to prep it for him. he will be renting one bay and will have access to the whole shop, however i will always have access to the other bay.

any ideas would be helpful. i was thinking like 175 a month to start and up to 400 if he uses it every weekend. this is a new venture for me. I do know that the wife and i could definately use the extra cash. the loan payment on the property is 570 a month.

What ever you do you put it all in writing, including a way to terminate the agreement. Make sure renting it out is even legal as far as zoning and for business purpose on your property there is a lot more to think about than just how much you can make. What materials or chemicals will he be bringing there, this is not a question with a simple answer.

 

[red1100cc]

i have a 20x60, and it is too small. ???

how could there be enough room for you to rent 1/2 of it out?

i will let a friend or family member work on things in my shop on a project by project basis. i would never rent it out.

if you were to rent it out, i would say $570 would be a good starting price per month. make it worth your while, if your gonna.

 

[card16969]

i have a 20x60, and it is too small. ???

how could there be enough room for you to rent 1/2 of it out?

i will let a friend or family member work on things in my shop on a project by project basis. i would never rent it out.

if you were to rent it out, i would say $570 would be a good starting price per month. make it worth your while, if your gonna.

i agree we have a shop at home thats 20x30 a rented part of a commercial building which is 25x50 and looking to build a new building which is 36x60 and still trying to figure out if that is big enough.. i dont know how that shop is big enough to rent out

 

[Blanca BusaLess]

How does he plan on building bomb shelters in the small of an area?
I see him having these things partially finished all over your yard? Me, I'd take a percent of profits?
Say 15% of sale price for each one sold? Why let him rent for $175 a month and sell a few of those at $25k a pop?