So you've decided to purchase a laundromat or to open your very own coin operated laundry. Congratulations! Laundromat ownership is one of the best ways to run a low risk, profitable business. Now that you've found the perfect location for your shiny new business, let's talk about the number one thing that causes problems for an owner of a laundromat - the lease of your business space.
A laundromat is different than most storefront businesses in that most landlords do not understand the business model of a laundromat. It is crucial that you ensure that your new landlord understands your long term business objectives and that the lease you end up with supports those. At T & L Laundry Equipment we understand that your coin-op business is unique and our experienced staff is here to help you through the process. From selecting the right equipment for your facility to helping you lay out the interior of your space - let our 40 years of industry experience help you be successful in the launch of your new business. Give us a call today!
It is important to understand the different types of commercial leases before you go ahead and sign on the dotted line. While it is tempting to sign a short term lease, when it comes to a laundromat relocation, costs can be prohibitive if you choose a space that is smaller than you originally intended. Moving equipment, advertising your relocation, the risk of losing customers are all things to consider when you choose the type of lease for your business. The terms of your lease can also have a negative impact on your business and leave you open to footing the bill when things go wrong with the building or the property. Understanding the basic structures of what you, as a tenant, are responsible for paying each month is critical.
- Full Service Gross or Modified Gross Lease - most commonly called a modified net lease, this means that you, the tenant, will be splitting operating expenses - property taxes and insurance, utilities and common area maintenance - with the landlord. Many of these leases also include a clause for you to split structural repairs of the building with the landlord. These expenses are referred to as the 'base rent'.
- Triple Net Leases - This means that you, the business owner, are responsible for all expenses - property tax, insurance premium, utilities, maintenance and the landlord is usually responsible for structural repairs only.
- Double Net Lease or Net-Net Lease - The tenant is only responsible for utilities, property tax and insurance. Maintenance and repairs fall to the landlord for upkeep and payment of costs.
- Single Net Lease or Net Lease - Tenant pays only utilities and property tax, while the landlord pays for maintenance, repairs and insurance premiums.
The most common type of commercial leases are the Full Service or Modified Gross leases. These are especially common with multi-tenant buildings. The good news about this type of lease is that the operating expenses do not cause the rent to increase. The bad news? If the operating expenses drop - the rent stays the same. It's important to know what the 'base rent' term in your lease includes. This determines the amount and type of operating expenses that are paid by the tenant - these can increase over the terms of the lease.
It is important to understand exactly what is included in your lease agreement. Many entrepreneurs sign Full Service or Modified Gross leases without fully understanding the terms and conditions of their lease.
Let T & L make the equipment purchase for your new business simple and hassle free. Our experienced staff and in-house financing can make your new laundromat run efficiently and affordably.
Affordable Coin Operated Laundry Equipment in North Carolina
The experts at T & L Laundry Equipment have over 40 years of experience in the vended and commercial laundry business. We specialize in products for your entire property - not just coin operated laundry equipment in in North Carolina! With convenient in-house financing and a wide range of used equipment available - T & L has exactly what your business needs to meet your goals in 2017. Give us a call today and let us show you how you can save money with new energy star rated equipment and make money in 2017!
