How Much Rent Is Too Much?

by Debby
(Isle of Wight)

Good Evening

I think I've found a nice spot from where to trade. It's in the car park of our local forest.

I've spoken to the Forestry Commission who look after the forest and they are keen to see my proposal in writing.

But, in the proposal they want to see what percentage of my takings I am willing to offer them for the pitch rental.

And that's the problem, I have absolutely no idea whatsoever what would be a fair offer.

I don't want to insult them with something daft but nor do I want to hand over more than I need to. Can you give me some guidance please?

Debby
ps - thanks for the response to my gas/electric certificate question - I have now got those sorted out and working on my hygiene certificate. Who'd have thought there'd be so much to sort out before you even get to flip your first burger.

By the way, we are calling ourselves Flippin' Tasty - I hope it brings a smile to peoples faces when they come to buy from us.

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Jan 16, 2009
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starstarstarstarstar 		Paying Weekly Rent is Better
by: Anonymous

Hi Debby,

I am very, very pleased that you have managed to find yourself a nice little catering spot.

Well done again and love the name that you have chosen - very appropriate.

With regards to writing your proposal

Weekly Rent

I would suggest that you pay them rent per week if you can, instead of them taking a percentage of your earnings.

Depending on how much footfall (customers) and how busy the location will become is also a factor in knowing how much rent to charge.

But saying that if they are prepared to charge you around £40-£50 a week then this is a fair amount.

If they want to charge you more rent then I would suggest the first 3 months you pay £0 rent if possible or as least as possible.

This could be seen as a settling in period where it will take some time to establish your business and also get people familiar with you and your business.

At the start you won't be earning that much,so
try and negotiate as much time as possible before you have to start paying the full rent.

More money in your pocket right!


Rent According to your Earnings or Profits

If they insist on a percentage of your earnings then 10-12% of your earnings is a good start.

So for 10% if you earned say:

£1000 per calendar month they would receive £100
£2000 per calendar month they would receive £200
£3000 per calendar month they would receive £300

You will also need to negotiate if this is a percentage of your earnings or your profits.

This is when it gets a little complicated and they will need to see records of your daily takings and so on.


The best option is to keep it simple and pay a weekly or monthly rent.

Hope this helps you out.

P.S flippin burgers is the easy part - it?s the business behind the burgers which requires the effort.

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