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Updated about 6 years ago on . Most recent reply
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Additional Rent Revenue
I currently have a 65,800 sq. ft. warehouse with four tenants. One of my tenants has asked if they could put a storage unit outside behind their space since they are out of space. Would it be unreasonable to charge them a fee although they would be getting the storage unit? My thought is there will be wear and tear on the concrete. Trying to understand if this is a good idea and if I could possibly create a little extra revenue. I'd appreciate feedback/advice. Thanks.
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@Drew Forte
I'm guessing that @Ronald Rohde and I share the same perspective
My thoughts:
- By allowing a storage area on your lot -you'll ultimately be responsible for any theft, etc.
- By allowing your tenant to install whatever, you have less bargaining room when any next tenant installs whatever too
- If the tenant doesn't do it to code, it'll be your fault first
- The tenant is going to do a 1/2 *** job - you'll pay more and end up with a proper structure
- Why would you want to lose the revenue stream?
I highly suggest you get in touch with your network and find out building code, what sort of structures you can put on your lot, and what the safest, best options are
**NOTE** A container is NOT a secure choice UNLESS you take pains to make it secure. AND you can NOT put an additional roll up door in its side and call it secure. I had one when I ran the roofing company - and someone (one of my guys? maybe) backed a pickup truck with a 2/10 in its bed into the roll-up garage door ripping it off its roller track...