Rent and Utilites

[Chase13]

Hi everyone

Figured I start another poll.

How long does it take you to pay your rent and utilities?

Chase13

[MichaelCa]

I second Howard's suggestion.

Perhaps: 10 or under
10 - 15
15 - 20
20 - 25
25 - 30
over 30

And i'd add, that a separate poll for Rent %(or amount), would be far more useful, as combining the 2 in one amount is not very useful.
Also, if its rent amount, then it should be related to a gross figure, so it has some meaning.

[pete f]

we know rent averages about 20% to 25% or gross, and utilities tend to run in the same range. I would say most should be able to pay those bills within the first 2 weeks worth of income.


If you want to change the poll, the suggestions given are good. Just one more item, you may want to ask those who own thier building to use some percentage anyway, and that being a fair market rent for thier building, not thier mortgage payment.

[Anonymous]

Pete makes a very good point here about fair rents. If you own your own building you MUST impute a fair market value rent that the laundromat must physically pay you each month. If you don't do this then you are making a major mistake. All to often I hear on this board, and in other places, that you save so much money by owning the building. That is total nonsense. You as the laundromat should be paying to your other pocket that which you would expect any other tenant to pay. If you don't do that then you fool yourself into thinking the laundromat is making more money than it is, and you tend to underprice your services. The only thing you get as a laundromat owner that also owns the building is a better landlord. As the landlord the only thing you get is a better tennant that always pays its rent on time.

[kbc747]

For myself it is less than one week but then it depends on what days of the week we talk about. Less than a week for sure but it takes only Thursday to Sunday to pay the rent. I rent the entire facility so I can control the rents from business to business(I own them all) but I charge more for the mat because it consumes more parking. If I used 2 weeks income it would pay the rent for the whole complex. This would include all the common area expenses.

[DuboisLaundry]

OK, I'm convinced
its time to start charging my laundromat rent

I have no idea where to start setting a price on the Mat's rent!

My building has 2 other "tenants":
my apartment and the upstairs apartment
The family in the upstairs unit pays rent and I suppose I should charge myself rent too and probably pay myself a salary

a percentage of total building square footage divided with mortgage?

This is a tiny town so there is no "board of realtors" publishing monthly commercial rent statistics. Any other "own the land too" mat owners have suggestions?

[pete f]

OK, I'm convinced
its time to start charging my laundromat rent

I have no idea where to start setting a price on the Mat's rent!

My building has 2 other "tenants":
my apartment and the upstairs apartment
The family in the upstairs unit pays rent and I suppose I should charge myself rent too and probably pay myself a salary

a percentage of total building square footage divided with mortgage?

This is a tiny town so there is no "board of realtors" publishing monthly commercial rent statistics. Any other "own the land too" mat owners have suggestions?

Try 20% of the laundry's gross sales for a rent, see where that leads you..