# Unit rental prices?



## magpieV6 (Jul 29, 2008)

Sorry if this has already been done, im just after a rough idea so i know what im aiming for. Im working up to it, so it wont be for a couple years yet. 

I know what i want! A unit with a wet and dry area. I have a good location in mind, plus working where i do means people with mega big cars. (Some of which i know) I plan on advertising, insurance etc. I want it all 100% proper! 

So how much am i looking at, all in. Renting or possibly buying a unit? 

It will be more of a detailing company than a valeting business as thats where my heart is!

Thanks


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## The Cueball (Feb 8, 2007)

BIG question there Dawn....:doublesho

I can't say about prices where you stay, as they will be dearer than mine, but for a 500 sqft unit, I am looking about £600 per month plus VAT..

Then add in rates (at about 40% of rent - give or take), £240...

The elec, water and rubbish...

Then insurance, and repairs/maint (you will be responsible for the inside of the unit)

and the costs start to add up VERY quickly...

Hope this hasn't put you off though!

:thumb:


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## JamesR (Nov 13, 2006)

well my mate pays 150 a month for a unit little bigger than a double garage with electric but only a out door tap for water. it has a pit and is in a secure yard. personally i think he pays over the odds.


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## magpieV6 (Jul 29, 2008)

Jeeze! It will certainly be a challenge! How much does an average size unit/builing go for? I wont give up!

thanks mate


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## chrisc (Jun 15, 2008)

they was doing units for 65 grand down our end not long back.but thats yorkshire,and they was pretty new


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## DE 1981 (Aug 17, 2007)

I constantly keep an eye on Industrial property up here in Aberdeen, i looked at a unit last week which was 2500sq/ft brand new etc etc and the rental alone was £20000/year.

It all depends on location really i can get a 5500sq/ft unit around 40 miles away from the city for £10000/year however not much point as my customer base is mainly in and around Aberdeen.

Gav


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## The Cueball (Feb 8, 2007)

Here is one that I looked at:

link doesn't work, sorry, but here is the information.

It is from pre 1960's

762 sqft

They want £7000 per year ex VAT to rent (£583 per month)

But to buy it's 60k

:thumb:


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## magpieV6 (Jul 29, 2008)

Thanks for your help and thoughts guys. 60k isnt that bad tbh, but where i live is an expensive area. I got my new build 1 b'room flat in 06 for 180k!


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## chunkytfg (Feb 1, 2009)

magpieV6 said:


> Thanks for your help and thoughts guys. 60k isnt that bad tbh, but where i live is an expensive area. I got my new build 1 b'room flat in 06 for 180k!


Jeez just where are you in High wycombe!!! I sold my 1 bed flat in loudwater in 2007 for 135k!:wall:


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## coxy (Aug 3, 2006)

Depends where you are and then typically where within that region. Its like buying houses. You can make offers as times are hard and theres lots to choose from. For detailing 1000sq ft is more than enough, can get 3-4 cars in comftably. 

Re your rates if its your only buisiness premises then you can get small buisness relief. Ie 5k rates you pay 48p in the pound so just under 2500 then small buisness rates can reduce that by upto 50% so 100 a month. 

so 400-500 rent
100 rates
100 water electric
and your insurance.

Its a big step so ensure your making a decent coin at it mobile before taking the plunge. 

As a guideline id rekon bout 1k per month for your overheads.


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## The Cueball (Feb 8, 2007)

^^ But be careful, as this small business relief only applies to a rateable value under 15k (21k in London) IIRC....

Just mentioning this incase the prices are very high for rental....

:thumb:


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## Shiny (Apr 23, 2007)

As far as the insurance is concerned, there a few more things to take into consideration for a unit over and above mobile.

Obviously you will need your public liability insurance, but this must also take into account your legal liability as the occupant of the building. You will also most like need by law Employers Liability if you have anyone helping out.

You will need also Motor Trade Road Risks cover so you can collect/deliver vehicles and move them around. The cost of this is very much dependent on the value of vehicles you will drive, so it can be pricey if you need to cover high end vehicles and supercars.

Road Risks policies exclude vehicles on or parked at your own trade premises, so you will also need to consider cover for vehicles at your trade premises. Again, this can be very expensive if dealing in high end vehicles as you should be looking to cover your maximum exposure, which will be the total of all the vehicles you could have at your premises at any one time. When high values are concerned, insurers also tend to insist on NSI Redcare monitored security systems, so you could be looking to add the cost of an alarm install and the annual monitoring to your ongoing costs.

Finally, you can extend to include other covers such as tools/stock/equipment, Business Interruption, Money, Inspection (for lifting or pressure plant) etc, but this are usually cheap in comparison to other sections of the policy.

Hope this helps a bit.


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## PETER @ ECLIPSE (Apr 19, 2006)

few other things to think about 
some business parks wont touch a detailing / valeting business , so always ask the agent when you phone for a viewing .
plus waste water , the local councils are really keen on what goes down the drains , and it can cost a fortune to install a tank , plus then it has to be emptied by them at a cost .
went to look at one last month and the fella was shaking his head as i got out of my van , for the above reasons


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## coxy (Aug 3, 2006)

Yeh make sure they know what your doing in there! Iv had that at a couple of spots, just wastes your time and theirs! 

Insurance can vary so much but if you aint over 25 you will find it very difficult. If you are wanting road risk cover to deliver the vehicles i doubt they will even touch you. Im 23 and found it very hard to get cover! For theft cover from your premises this isnt so bad, was 400 on my premium for upto 50k. Dont even ask bout my road risk cover! Although you can set your indemnity levels at whatever you wish. If you know you will only have cars upto 20k you can set your limit at that and maybe get short cover if you get a 50k 911 in for instance.

Like i say it all adds up so id make sure youve a decent mobile base to be working from so youve money coming in before you get a unit


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## The Cueball (Feb 8, 2007)

PETER @ ECLIPSE said:


> few other things to think about
> some business parks wont touch a detailing / valeting business , so always ask the agent when you phone for a viewing.


That is the only reason I gave up looking...fed up of people saying no, as soon as they think it's a car wash...



:thumb:


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## CleanYourCar (Jan 23, 2006)

The Cueball said:


> That is the only reason I gave up looking...fed up of people saying no, as soon as they think it's a car wash...
> 
> 
> 
> :thumb:


Yeah we get that. They actually wrote an extra bit on our tenancy to forbid any form of car washing etc. as thats all they thought we did.

We pay about £1000 + VAT a month rent for a 2100 sq/ft unit. Rates are about another £4000 a year on top and for that you get absolutely nothing, not even your bins emptying.  + gas, electricity, water and insurance it soon tops up .... and I think I've just depressed myself again. :wall:


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## David (Apr 6, 2006)

if you are talking about a wet/dry area both inside - you can forget it now, no sane person would allow water inside the units.

If you mean outside then you will need to contact the council as you will be putting waste water down their drains, chances are you'll need to pay a collection fee.

I share a unit with a customer of mines, i rarely use it because i don't need to, but i know he pays around £1200 a month which includes the rent, the water and power

Thats £300 a a week before you take into consideration your insurances, your products, your time and whatever you need.

I'd say you need to be turning in £1,000 a week to make the fully kitted out unit a proper business


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## PaulN (Jan 17, 2008)

Just looked at the unit for rent on the site where our gym is. 4500 sq/f for £1800 per year.

Thats £1500 per month for 4500 sq/f!!!!!! Bargain compared to some prices mentioned.

Cheers

PaulN


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## Cullers (Sep 29, 2009)

After spending most my working life involved in getting businesses up off the ground (working for government, local government, venture companies and universities) and having run two successful business myself, the only way you can contemplate this and negate the odds of it being a disaster is to project it using cash flows and profit and loss spreadsheets. Its only once you see what you need to earn at different points of the year that you will have an idea of exactly how much you need to be bringing in each and every week. I am just about to set up my own company in this field and has spent two weeks putting all the figures in and its scary reading believe me. Well it is if you do proper research and put in proper figures! From previous experience I know most people wanting to set up businesses HATE and DETEST doing this type of thing but twenty years of experience completely support the old military saying of 'Fail to prepare, prepare to fail'.

The spreadsheet I've set up covers p&l, cashflow, stock inventory and sales projection on different worksheets which are linked so if you update or change things like number of sales or prices, it has an effect on the cashflow and P&L. Two flaming weeks!!!! Its not perfect yet but it does work and has made me reconsider WHEN I need to look into investing in a unit.


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## Mirror Image (Apr 19, 2009)

our unit is 870 square feet which includes a small office/waiting area. We pay circa 500 a month partly due to the fact not many people want to be next to our neighbours, we have room to work freely on 2 cars bt can store up to 4 at the end of the day


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## DE 1981 (Aug 17, 2007)

whose your neighbour?

How many cars can you fit into 870 sq/ft?


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## EliteCarCare (Aug 25, 2006)

The Cueball said:


> That is the only reason I gave up looking...fed up of people saying no, as soon as they think it's a car wash...
> 
> 
> 
> :thumb:


Fortunately we don't have that problem at our site as the landlord is very laid back, but many site owners can refuse this kind of business. If you try and go for a site a little more rural you'll probably get a better deal and the rules won't be as strict. There are plenty of farm owners offering units from their land nowadays. If you're not relying on passing trade then it's the way to go. :thumb:

Alex


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## EliteCarCare (Aug 25, 2006)

CleanYourCar said:


> We pay about £1000 + VAT a month rent for a 2100 sq/ft unit. Rates are about another £4000 a year on top and for that you get absolutely nothing, not even your bins emptying.  + gas, electricity, water and insurance it soon tops up .... and I think I've just depressed myself again. :wall:


Tim,

You'd be paying double that down here for the same setup so you're not in a bad position really! :thumb:

Alex


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## coxy (Aug 3, 2006)

I pay even less than tim well alot less! mines 1300sqft, i can get 7-8 cars in to store, i take 2 out for a decent detailing space. I sell cars aswell hence the other cars


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