ADN WINTER 2022_WEB

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DETAIL DOCTOR When it’s time to retire The ability to assign a lease or to sublet is important if there’s a possibility that the business owner may want to sell the business or pass on the business to a family member. THE MEANING OF ‘EXCLUSIVE USE’ Always ask for exclusive use, meaning there cannot be another car wash or detail business on the property, say if it is a strip mall or a commercial property lot full of various business. Also ask for a lease structure that includes monetary default rather than non-monetary. For example, if an accident happens and you don’t pay your rent one month, make sure you have the right to cure (that) … if I were a tenant, I would want it so that a non-monetary default could not lead to them taking the space back.” It could be that fellow tenants complain about excessive noise coming from your business due to buffers and/or vacuums, or you place signs in your windows that aren’t permitted, “(the landlord) can default you but it doesn’t mean they can evict you. Regarding signage, ask if your business name can be included in the center’s pylon or monument sign for greater visibility. And seek to have parking spaces nearest your business entrance/exit designated for your customers’ use only, as needed. DON’T BE PETTY, IT WILL BACKFIRE THE ORIGINAL... PNEUMATIC ROTARY SHAMPOO TOOLS & MORE DETAILPLUS.COM || 503-251-2955 Whenever there is a disagreement with your landlord, always pay your rent on time, no matter what. Some tenants think, ‘I’m going to withhold my rent and send a message! That will show ‘em!’ No, you won’t. Instead, you’re going to lose all your power. Instead, pay your rent, then fight. Communicating with the landlord beyond mailing or dropping off the rent check each month can have its benefits. All healthy relationships have boundaries, and a business contractual agreement is no different. If you have the ability to have a cup of coffee with your landlord once a year, that’s pretty helpful. First off, it humanizes your business relationship. You know you’re dealing with (this person) vs. ‘the big, bad landlord.’ You also get to know them a little bit better, and it’s also good for them to have a sense of how your business is doing. CHEAPER PROPERTY COMES AT A COST The more knowledgeable the tenant, the better the tenant, and part of developing this knowledge base is establishing realistic tenancy expectations based on the age and condition of the property you want to lease. If you go into a 30-year-old auto service mall with no anchor (tenant) and you’re paying cheap rent, you should have a low expectation of what your landlord’s going to do. There’s not a lot of money to do things, as opposed to a brand-new, high-end property. Have clarity about what you expect them to do and not do. IF YOU HAVE TO MOVE ON Relocation would likely be difficult and costly for the you and owner leasing their property. So, what can a new owner do to protect the business against the prospect of relocation? Have the lease spell out what would happen if the business were to be relocated. For instance, it could only be moved to a similar spot (if the detail shop is located on one end of a strip mall, or it could be moved to the other end but not somewhere in the middle, for example). And be sure to put in the agreement that it’s all on the landlord’s dime if you have to relocate. The landlord has to pay for the relocation costs, and the space has to be provided with all impact fees paid. You need to detail all of this out so that everyone knows who is responsible for what. WHO IS RESPONSIBLE FOR WHAT? Common area maintenance (CAM) fees are paid by tenants to landlords to help cover costs associated with common-area overhead and operating expenses, such as removing snow from the parking lot or maintaining building security and landscaping. While most leases clearly spell out these fees, many tenants re surprised by them when their first rental payment is due. You need to know exactly what the dollar amount it is you’re writing out at the end of the month. Whether it’s triple net, whatever it is, with sales tax, what is the exact dollar amount? Fully understanding what (that covers) is absolutely key. Have an itemized list on your agreement so you’re not shocked when you’re paying a large fee for snow removal in a state with little to no snow, for example. Also, look around at the landscaping efforts on the property. If you have to pay for the maintenance of a few sad looking grassy areas, is it even worth it? There’s a lot to know about leasing. You as a detail business owner have the opportunity to negotiate a unique agreement that’s beneficial to you and future of your business. Look for red flags with a potential real estate attorney and with a landlord and choose wisely before you agree to anything. And remember, if you can’t agree on a deal on your first choice for a site, there’s more than likely another suitable property right down the road that’s more than fit to lease. If I can help you answer any questions or concerns, feel free to reach 6 | AUTO DETAILING NEWS | VOL. 7, NO. 4 • WINTER 2022
Tales from ... beyond the Cringe! Poor SteadyEddy! Carwash.com forum user, who goes by SteadyEddy, recently shared the following pictures under the thread: The most disgusting thing I ever saw in a customer's car was (fill in the blank). Can any of you relate? Feel free to share your own pictures by visiting www.carwashforum.com/forums/detailing.10 “Customer used the entire car as an ash tray and mobile garbage can. Half-eaten chicken wings, and mold of every color was imbedded into the back seat floors. Had to use a 3M respirator to stop from puking.” Other responses: … the customer ... - Dirt A couple of months ago, a customer wanted us to clean maggots out of their car but they never showed up for the detail. They had left a full chicken in the trunk for a month and it obviously, went very bad - Patkelly1336 VOL. 7, NO.4 • WINTER 2022 | AUTO DETAILING NEWS | 7
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ADN WINTER 2022_WEB

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