need help determining rent

[jcawley3]

Renting a bay to someone to preform side work. He gets full use of one bay, lift, air tools, hand tools, welder. Pretty much. Anything you would need. I'm trying to figure out a daily rate. He will use it after 5 somedays and on weekends. This shop is just sitting here storing my junk. So I may as well make something off it. Have no idea what to charge him. Thanks for any input. -john

 

[TURBOTWIN2]

How much would it cost this individual to rent/lease a similar building? To me, a one bay enclosed, secured garage with a lift (very valuable) would be a bargain at $750 a month. Value of the availability of tools, priceless.
Percentage method: 25% of his labor (25% of $50/hour X 4 billable hours a day = $50/day). Add in for possible contingencies and problems.
Another consideration: what type of qualified technician/mechanic doesn't have his own set of hand tools? I would NOT want to be lending out my tools. They WILL grow legs. What about wear and tear on your air tools?
What about liability insurance (for you and yours)?
What about code compliance in case some busybody or irritated customer?
What about some kind of contract in writing, protecting you?
"The best laid plans of Mice and Men...
I can see $75 to $100 day rate if he's full time doing it. Be careful.

 

[joemama]

Buddy of mine rents a 30 x 60 with only a lift and compressor. He pays five bills a month for it. This is also for side work on nights and weekends. Keep track of your tools.

 

[salvageV6]

Lower the rent but make him pay for liability insurance and put the rules down when and where customers can go, and what EVERYONE involved can and can't do and WHEN.

Don't end up with your place a hangout.

A daily rate for cash sounds good too.

If everything is in writing make sure you're gonna declare it so that isn't held over your head in case it goes south and lawyers get involved.

If it ain't profitable and easy don't bother with it, because then it will either be UNprofitable or time consuming and maddening.

 

[klrv6]

Have a lawyer write a contract or agreement first. The one for our consulting company ran $250 and really protects the company from problems out of clients. Mine went into detail about zero liability for loss of data or damage to computer systems. I had to have it this way as I get the calls after the systems have broken.

You could have anything you want put in the agreement and you at least have something to stand on if things go bad. No idea what the rate should be that you charge this guy.

 

[jcawley3]

That's what I was thinking 50 or so a day. We have everything worked out as far as no hanging out. He is a good mechanic does not want full time employer know he is doing side work. shop has 24 hour cctv coverage inside and out. Thanks for advice.

 

[Junior Samples]

Renting a bay to someone to preform side work. He gets full use of one bay, lift, air tools, hand tools, welder. Pretty much. Anything you would need. I'm trying to figure out a daily rate. He will use it after 5 somedays and on weekends. This shop is just sitting here storing my junk. So I may as well make something off it. Have no idea what to charge him. Thanks for any input. -john

If you know him, do trial run, if it gets to the point that your whiping down your own tools he borrowed or picking them up while your walking by a 74 amc pacer that just got dropped off in your lot next to the 81 ford fairmont that arrived the day before.....well..... enough from my fingers

 

[wile87]

i think some guys are not reading into what the guy and you are working out . he sounds that he only needs to use the shop as side work comes up, correct?. he will not be a 6 day 8 hr shop. think of whats fair and try and base it off how much work he performs. overcharging him will not be worth the time to do the work. gotta figure his prices are going to be no where near what the going rates are now

 

[salvageV6]

" He will use it after 5 somedays and on weekends. "

Sounds like 10-20 hours a week tops.

Make it an hourly rate determined 5 minutes after his car rolls into the CCTV system tape or digital image.

And when he rolls out on video he's off the clock. :smile:

And if he doesn't charge for all his time, at least you will be.

Rent is rent as long as YOU get paid.

Otherwise it's somebody borrowing your garage.

If he doesn't have $$ for upfront expenses in his new venture it probably won't be working out well for either of ya.

And if he doesn't have renters insurance and gets hurt, or someone gets hurt off his work done at your place, guess who's gonna be sued as soon as they get all his money.

You need to check all your options carefully as to what your liability is.

 

[GNTIM]

Sounds risky to me, but I don't really trust too many people. Liability would be the biggest issue. Access to tools and equiptment leads to damaged, worn and missing tools/equiptment. Every time I open my tool box I see stuff missing and I have been the only one with access to it for 4 years. Some good points made above. CYA

 

[jcawley3]

i think some guys are not reading into what the guy and you are working out . he sounds that he only needs to use the shop as side work comes up, correct?. he will not be a 6 day 8 hr shop. think of whats fair and try and base it off how much work he performs. overcharging him will not be worth the time to do the work. gotta figure his prices are going to be no where near what the going rates are now

you are correct....works on older euro stuff..