Workshop advice

[mailee]

I am now looking for a new workshop having gone on my own and have seen one which I am interested in. It is a large shop of 83sq mtrs with an office, toilet, spray room and workshop. It is fitted with three phase already and used to be a cabinet makers workshop. The landlord is asking for £320 per month and says the rates are about £65 per month. It is in a secure position and I think it includes a burglar alarm although it does have iron gates which lock on the car park into the compound. Do you guys think this is worth it for me and are there any other hidden costs that I should think about apart from the electricity which is metered anyway. This will be my first venture into a real workshop so any advice you can give will be appreciated. Thanks.

 

[Dibs-h]

900 square feet from what the calc says - unless I'm having an off day?

Office space goes for around £10\foot (and upwards) - in regional cities (assuming it's not a spanking glass building building) and a sh!thole industrial unit from £1 upwards.

So at £4.26 per foot - seems reasonable. Especially if it's secure. There may be a service charge and\or ground rent - I'd ask?

Obviously your leccy\gas will be + full vat & not 5% as it is at home. Worth checking the lease - is it Insure & Repair (or whatever they call it these days) - i.e. you insure and repair it?

The rent may be +vat as well - which from Jan next year will be 20%. Worth clarifying.

Don't forget you'll obviously need insurance to cover your kit, public liability (if you've folk come to visit you - even non-customers I think).

HIH

Dibs

p.s. I suspect some of our pros (Jon\Brad) will be able to shed more light on th3 matter.

 

[jimi43]

I once rented a shop which was a bargain until I found out later about business rates. These were ridiculous. Of course these vary from place to place and type of business concerned but worth double checking those figures. They can be the make or break of a business.

Jim

 

[Dibs-h]

I once rented a shop which was a bargain until I found out later about business rates. These were ridiculous. Of course these vary from place to place and type of business concerned but worth double checking those figures. They can be the make or break of a business.

Jim

This should help\confirm,

http://www.2010.voa.gov.uk/rli/

Dibs

p.s. This should tell you the rateable value for that place, but I do know different types of business can\do have different rateable values. So the value shown on VOA's website should a very good indicator.

 

[big soft moose]

check for weather tightness - we just had the first big rain since moving 'shops and wound up with nearly an inch of water on the workshop floor. (the downpipe from the roof goes through the shop but leaks at floor level so its essential draining half the roof straight in to the 'shop..... buggeration )

 

[JonnyD]

Hi allan You need to allow for electricity mine is about £150 a quarter in summer about £250 in winter as i heat the spray shop with electricity. My insurance comes in at around £100 a month for workshop machines, stock, public liability, business interuption and work in progress. I also allow £100 a month for consumables such as sandpaper dominioes glue saw sharpening etc or you could put it on each job you do. I would add your vehicle running costs to the monthly ammount as it needs accounting for as well.

You also need top be in control of cashflow I am usually owed anywhere between 3 and 15k at any one time so you need to allocate some money as a float till the money comes in. You should qualify for small business rate relief which is about 50% off but that may already been deducted to your £65 quoted. Labour had introduced a year off business rates for small businesses due to start soon but i havent checked whether this has been scrapped by the new government but it may help you out for the first year.

I would imagine by the time youve allocated everything you will be at almost double the rent per month in overheads.

cheers

jon

 

[joiner_sim]

Hi,
Just had another look at your website, last time was when you had only just started out....

It looks like you have come a long way since then and I'd like to wish you all the best in your planned expansion :wink:

 

[Carlow52]

Couple of things to watch for, based on Irish business law.

make sure there are no arrears of rates, here a new tenant can be had for 2 years arrears.

If the unit is in a large estate, there may be an estate management fee.

The small print in a full repairing and insuring lease can leave you with a hugh bill for reinstatement at end of lease.

You need to photograph the entire inside and out with time and date on front of each pic and attach to lease.

You then need to make sure that if there are any repairs due to be made, say to roof/gutters/boundary wall etc that they are done by the landlord and not for your account at the end of lease.

Consider CCTV with remote monitoring, such as from your own hope.
Good luck

 

[9fingers]

check for weather tightness - we just had the first big rain since moving 'shops and wound up with nearly an inch of water on the workshop floor. (the downpipe from the roof goes through the shop but leaks at floor level so its essential draining half the roof straight in to the 'shop..... buggeration )

I never ceases to amaze the things that the building business gets up to.

Having pioneered the flat roof and all the ensuing disasters 10 years down the line, they they have the master stroke of making a waterproof roof with decent pitches and then are too idle to have gullies for the water and instead bring it INSIDE the building to reintroduce the risk of flooding once more.
Pineappling idiots!!

I hope there was no serious damage to your kit Pete

Bob

 

[big soft moose]

check for weather tightness - we just had the first big rain since moving 'shops and wound up with nearly an inch of water on the workshop floor. (the downpipe from the roof goes through the shop but leaks at floor level so its essential draining half the roof straight in to the 'shop..... buggeration )

I never ceases to amaze the things that the building business gets up to.

Having pioneered the flat roof and all the ensuing disasters 10 years down the line, they they have the master stroke of making a waterproof roof with decent pitches and then are too idle to have gullies for the water and instead bring it INSIDE the building to reintroduce the risk of flooding once more.
Pineappling idiots!!

I hope there was no serious damage to your kit Pete

Bob

fortunately all the kit is off the floor, and i wisely specified sockets at bench top height when this was fitted out, so the only damage thus far is a bit of water damage to the bottom of units - nothing that wont dry out - they are alledgedly coming to fix the leak tommorow, so heres hoping for a dry night in the oxford area

 

[ProShop]

Price sounds about right for Grimsby. As JonnyD says you can double that price easily on your monthly costs.

 

[mailee]

I returned to have another look around and quizz the other tennants on costs. They both told me that this is the price they pay for a similar sized workshop inc VAT and that I would be able to apply for the 50% discount on the rates being a fledgling business. I also have the advantage for six months of still being unemployed and recieving jobseekers allowance so do not have to worry too much about another income yet. This is known as Test Trading. I was told that the landlord is an easy going guy and only asks for a deposit of £500 with one months rent in advance. There are no legal fees to pay and the only other overheads will be electricity and water which is pretty low anyway. They have had no trouble with theives or kids and there is razor wire on top of an eight foot wall around the compound. I will have to insure it of course but already have indemnity insurance for working on site so will see if I can add to this with the workshop. Another bonus is that I may be able to pick up some of the Cabinet Makers customers as he has only just ceased trading. I am quite tempted and realise it is a gamble but nothing ventured nothing gained I suppose. :wink:

 

[Lons]

I returned to have another look around and quizz the other tennants on costs. They both told me that this is the price they pay for a similar sized workshop inc VAT and that I would be able to apply for the 50% discount on the rates being a fledgling business. I also have the advantage for six months of still being unemployed and recieving jobseekers allowance so do not have to worry too much about another income yet. This is known as Test Trading. I was told that the landlord is an easy going guy and only asks for a deposit of £500 with one months rent in advance. There are no legal fees to pay and the only other overheads will be electricity and water which is pretty low anyway. They have had no trouble with theives or kids and there is razor wire on top of an eight foot wall around the compound. I will have to insure it of course but already have indemnity insurance for working on site so will see if I can add to this with the workshop. Another bonus is that I may be able to pick up some of the Cabinet Makers customers as he has only just ceased trading. I am quite tempted and realise it is a gamble but nothing ventured nothing gained I suppose. :wink:

Something else to check is the length of the lease, rent review dates if any and penalties if you jack it in early.

As already stated, condition needs documenting. My mate got stung for£2k of repairs a the end of his lease.

cheers

Bob

 

[Oryxdesign]

On the face of it it appears cheap as chips to me and if the landlord is easy going about the length of lease, whats to lose?

Good luck Simon

 

[Dibs-h]

On the face of it it appears cheap as chips to me and if the landlord is easy going about the length of lease, whats to lose?

Doing well or so the landlord thinks and getting stung for a rise. Sorry that's only me being pessimistic. :lol:

Go for it as you say - nothing ventured nothing gained! :mrgreen: