ADN WINTER 2022_WEB

DETAIL
DOCTOR
This land
is my land,
and their land
Everything you need to know
when it comes to leasing
Bud Abraham is Founder and President Emeritus of DETAIL PLUS Car Appearance Systems, with more than 40 years
of experience in the car care industry as a manufacturer, operator, distributor and consultant. He writes articles and gives
seminars on the subject of auto detailing throughout the automotive industry. He can be reached at buda@detailplus.com.
By Bud Abraham
buda@detailplus.com
With the detail business improving
and more revenues being generated by
liquid glass coatings many detail business
owners are either looking for a
larger business property space or mobile
detailers are looking for a place to call
‘home.’ That being the case, it’s important
that you understand your rights as
a lessee, as well as the responsibilities of
the landlord. Gaining this understanding
begins from the moment you find a particular
property and begin negotiations.
To not get ‘burned’ with a lease in which
you will have to live with for 4 to 5 years
it is important you know the fine points
of leasing.
Most of all commercial leases are
similar in nature whether it’s for a detail
operation or for a convenience store.
And, regardless of how much you think
you know, it’s crucial to hire an experienced
real-estate attorney to advise you
before negotiating and closing any deal.
Note any red flags you see with a socalled
experienced real estate attorney. If
an attorney is inexperienced, they’ll ‘hyper-focus’
on one issue and miss something
more important. They might get
wrapped up in some little thing and won’t
address, for example, a relocation clause.
Also, make sure he or she is specifically a
real estate attorney. You can contact your
state’s Bar Association to make sure they
are a qualified candidate hire.
IS DETAILING
ALLOWED?
Most commercial leases will have
property use restrictions, and often a
detail business might include an activity
that is listed as restricted. So, you’ve got
to make sure a proposed lease allows detail
businesses at the site. You must also
disclose you will be washing vehicles and
cleaning greasy engines, or this could
come back and be a big problem later
on and eventually forcing you to relocate.
You will want to make sure the site
has a wash bay or area with a grease trap
and a connection to the sanitary sewer.
If it does not, this is something you
can negotiate with the landlord to install
for both his and your protection.
WEIGHING THE
TERMS
The monthly rent amount has to near
the top when it comes to weighing the
various commercial lease terms. Another
is the impact fee, which is a one-time
charge that can be exorbitant for detail
businesses, depending on which state or
city you’re looking to locate in. Also, a
lease length and the options to renew are
right up there, too, in terms of priorities.
If I were you, I would want is a fiveyear
lease with a five-year option (to renew).
When a tenant has an option in
their lease, it’s completely one-sided. It
only benefits the tenant. It never benefits
the landlord. When you have an option,
all you have to do is say, ‘I’m exercising
my option’ and you stay. But, if the (rental)
market goes south, you can choose
not to exercise your option and then
renegotiate a lower rent. If and when
you’re a tenant, you have to fight for as
many options as you can.
Also, negotiate for a period of time
to complete any buildout needed before
you open your detail business.
If you get 30 to 60 days for buildout
and 30 days free rent, why not ask for a
total of 90 days? If you get the buildout
done sooner, you don’t have to start paying
any rent. I would say, ‘Mr. Landlord,
the reason to do that is it gets me motivated
to push the contractor to get done
by working nights and weekends.’ Landlords
want tenants’ businesses opened as
fast as possible.
VOL. 7, NO.4 • WINTER 2022 | AUTO DETAILING NEWS | 5