renting a mat

[Anonymous]

would anyone out there consider renting a mat? if so, under what terms? i am new to the business and looking for an opportunity to get in. there is a mat for rent 5 blocks from where i live and no other in the immediate area. i'm not sure there is any point without the possibilty of equity build up. on the other hand, i don't have so much to invest. any help is appreciated.

[pete f]

It is nice to have a mat that close to where you live. I am not sure I understand the question, rent the mat.. Do you mean rent the building the mat is in of actually rent a mat?

[Neil]

I agree with Pete. Are you renting all the equipment as well?

I own a mat but I rent the space. I bought the mat from the owner of the building as he didn't want to spend any time there and he didn't want to build the business. I own all of the equipment and the business name so I do have equity.

[Jim]

I have never heard of someone renting a mat...?

I think you need to ask or find out why it is for rent...The only reason I can think of, to rent a mat, is because it is not doing well and I could not sell it...This way there is a little income to pay the bills.

It also means that whomever rents it, is going to lose money or has to come up with a way to increase business.
With this said, if the renter does come up with a plan to increase business I could then stop renting it and take over...again the renter loses in the end.
OR --- The owner truely has no interest in the mat anymore, but again why not sell it..? this does not seem to make sense?

I think you need to investigate the mat more and find out if it makes any money....plant yourself there and watch the number of customers...

[Anonymous]

If I would be a landlord and just bought the mat inside my building from previous owner and if I don't have time to manage it and if I know too litle about this business but I still want to keep it as an asset than I would rent it together with all the equipment.
Supose I used to charge 1500 rent from mat owner for the location now I can charge 3000 or 4000 for location and equipment ant brand and market.
If I would be short on cash and have dificulties finding financing but I would want to get in this business I would consider the possibility to rent one mat if it is for rent.
Here you have the seller and buyer in diferent forms.
I think it is possible for a mat to be rented.
Here is another reason for I rent the mat:
- I am a mat owner and I want to retire just for a wile to go to a trip (for 1 or 2 years) around the world. I want to keep my business running. The best way is to rent it (money up front) this way I would be sure the guy who rent it will do everything to keep it runing.
- I am a mat owner and I work for a big company as a manager. I am assignet to work for 5 years 2000 miles away from home. I want to keep my business so I rent it.
- I want to build a network of mats but I don't have time to work in all stores. If I rent 1 or 2 mats of my network it would be higher probability the business will work than to hire managers.
I think there are thousands of reasons for renting a mat. But before rent it, like before buy it you should do your homework.

Teodor

[Anonymous]

thanks for the replies. i am concerned that after i build the business up, the landlord can simply take it back. but who knows, maybe this is a simple way to gain experience. i obviously have homework to do...

[mike]

kieka,

It is cheaper to try renting a mat that buying or building one.

If you can get in for a couple of thousand dollars, and try it out for a couple of months, that may be interesting for you.

[Jim]

ok ok...there are many reasons to rent a mat....I just never heard of it before...

[Anonymous]

Originally posted by kieka
i am concerned that after i build the business up, the landlord can simply take it back. but who knows,

How about a...... lease???

I can see renting a complete mat, I've thought about it with mine.

But if you do rent it make sure it can cash flow and make sure you have a good long lease.

[pete f]

I do not think it is really possible to rent a mat. To much equipment, who is responsible for what? And a renter would not have much capital invested, so if things don't go his way, he is gone and you have a pile of broken stuff plus a wasted business left. As someone said, you would have to be real desperate, and have one piece of crap location.

As for renting a building, or a spot in a building, no problem. Get a long term lease, put your money to work quickly. Yes, the landlord can steal the mat from you in the end, you have to make it so he does not want to, ie, keep it nice, not bother other tenants, and updated so it makes you, and him, money. I like owning the building, but I have a couple rented locations, not to bad.

[BWJR]

When you rent the location and lease the equipment, in a way you are renting the mat. The only difference is that when the equipment lease is over you own the equipment. Is that what you mean?

BWJR

[Anonymous]

Originally posted by pete f
I do not think it is really possible to rent a mat. To much equipment, who is responsible for what? And a renter would not have much capital invested, so if things don't go his way, he is gone and you have a pile of broken stuff plus a wasted business left. As someone said, you would have to be real desperate, and have one piece of crap location.



I think it can be done IF you take some mesures. As owner I would rent only with advance payment lets say for 6 month. Everything else should be specified in the contract.
I am a newbie so I would love the opportunity to run a rented mat only before build one of my own just to learn de business and why not to make some money.