Rent, Leases & Landlords

Lots going on, mind swirling, emotions in full rage and stomach flip-flopping.

My lease is up the end of August. For the last few months, I have been including a note with my rent, asking to talk about renewing my lease. So, it really wasn't a mystery that I wanted to stay. I thought that would be appreciated by my landlord, especially in this economy. I can't imagine that there are that many people looking to open new businesses right now.

So, when I get home Wednesday, there is a package in my mailbox from an attorney. "What did I do?", I wondered. Well, I opened it up to find a cover letter about signing and returning my new lease. As I look it over I see my base rent is going up $1 a sq ft. Not unexpected. But wait. Base rent? I was just paying rent. So I keep reading. They are now adding a "Common Area Maintenance and Taxes Fee" to my rent. And adding this to the increase in my base rent increases my total rent by 50% over what I have been paying. That is quite a hike, in my (and every one of my customers that I have told about this's) opinion.

I understand the concept of Common Area Maintenance fee. But this is not a shopping center. It is three stores in one building. About 4000 sq feet total. There are about 10 parking spaces and a little strip of grass. I don't understand what maintaining this area could be. For the first 2 years, she had someone weedwack the weeds every couple of months. There is usually a large hole in the middle of the parking lot that people have to drive around. The hole has been filled for a bit and they have actually been cutting the grass every other week or so since the spring. But I am not paying thousands of dollars for that. Property taxes are there problem. That is what I am paying rent for. For them to pay the mortgage and taxes on the building. Why make me pay for their property taxes AND also pay more in rent. That's like getting the best of both worlds. "We don't have to pay taxes or maintenance anymore. Lets raise their base rent to so we can make even more profit."

So, after not sleeping all night, I give them a call when I get to the store. Lo and behold, they are on vacation until today. Seriously, you drop a bomb like this on your tenants and then are unavailable? Not cool. If anything could have made me more angry, that was it.

Wednesday night I had emailed some of the big commercial places that had spaces available. I know that most are out of my price range, but you never know. Many have been open for a long time. On the way into the store Thursday, I drove around the area writing down numbers of available properties. I planned on using my typically slow Thursday morning to call around and maybe go see some when my help arrived. There was a specific place I new about. A boring 1500 sq ft rectangle, but not a bad location. In the building next door there was a 3000 sq ft space available. Way more than I could ever afford, but I wrote the number down anyway. "What the heck, it couldn't hurt to call, right?" I called both the numbers and arranged to see both places around 4:00. Luckily, the day was much busier than a normal Thursday. I talked with my customers about the potential move somewhere. Everyone was shocked by the 50% rent increase.

So, I finally sneak out of the store to go see the 2 places. Both are on a main road here. My current place is 1 block off the main road, but on a still busy road and right across from an entrance to a big shopping center. I am peering through the windows at the 3000 sq ft place. Hmmm, lots of windows and doorways. Not good for me. I need lots of walls for comic racks and bookshelves. There is also a big wall with what were changing areas for the dress store that used to be here. It looked like a lot of work to get it ready. And the fact that it is 3 times the space that I have now. I can't afford to triple my rent, and being on the main road, the rent per sq ft would probably be even more than I am paying now, so it is probabaly way out of my price range. The landlord, gary, gets there and we go in. Well, its may not be too many windows because there are a bunch of mirrors I thought were windows. The dressing area could easily come down. Not structural. There are a couple of extra rooms that I don't need, but may be able to do something with. OK, this could work. But how much? While it is more than doubling what I am paying now, it is only $900 more than what I will be paying under my new lease. $900 for better location and 3 times the space. That could work.

I leave and go look at the other place. A 1500 sq ft rectangle. I really don't like the space and the price is way too high for what it is. Only $250 less than the 3000 ft place. So my wife is out and about with the kids. She wants to see the big place. So we go look. I brainstorm some ideas about what I would put where. We both like it, but we are worried about the increased rent. I am comfortable with what I am paying now. More than doubling that is scary. Will I do enough extra business in the new place to cover that increase? I don't know, but at least I was able to sleep.

After talking it over that night and morning, we agree to go for it. The space is too good to pass up. I am completely out of room where I am and I need the extra room. This is far more than I would have looked for, but it is too good to pass up. So, I call Gary and tell him I'll take it. He had mentioned before that he was waiting for a guy to sign a lease on it, but he was still getting his numbers together. He is planning on gutting it and putting $25,000 into it to remodel it. I will take it as is. He said he was giving the guy this weekend to get back to him. He called him Friday and his business was closed for the holiday.

So, I should find out today what is going on. He is telling this guy he needs to sign now because he has another another guy (me) who wants the place. What will this unknown guy do? I don't know. My fate is kind of in his hands. Gary wants to rent the place. Its been open for a while and he could use the income. So I don't think he'll let this guy play him for long. I hope not.

My tummy is all flip-floppy. I am excited about the prospect of taking care of my sudden rent problem quickly. I love the idea of more space. I am doing my best not to think about what I would do in the new space so I won't be too disappointed if the other guy signs. But I am also scared of the new rent amount. Its not like I have that extra amount just laying around at the end of each month. I am also concerned about what all will be required to actually move the store. A bit of a logistical nightmare. It has to be done all at once. Close Saturday at the old place, reopen Tuesday at the new place. Coordinating the phone and all that stuff. So I am excited and scared at the same time. Kind of like when I signed my first lease.

I am 90% sure I am not going to get it, that the other guy will sign and I will have to continue my search. I am a firm believer in fate and what was meant to be will be. If I don't get it, I wasn't meant to. I have been needing more space for the last year, but I was willing to resign at my current place for convenience. I am looking at this whole thing as fate's way of saying I need more space and its time to move. So it may or may not work for this space. Hopefully I will know something in the next few hours. Then I'll be able to eat.