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Next door wants me to leave my gym - what deal should I ask for?

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paulthebuilder
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2007/06/14 16:50:02 (permalink)
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Next door wants me to leave my gym - what deal should I ask for?

There's a snooker club next door.
They currently rent it from my landlord.

Their buildings acquisition manager has been in touch to ask if I'd consider buggering off since they want the entire unit - both gym and snooker club thanks to "expansion plans".

If it's rental, the landlord stands to get a lot more from them than he's getting from me.
If it's to buy the whole thing freehold, the landlord stands to get £620,000-plus - the combined unit's current value.

Now, I am quite happy to bugger off since I don't get on that well with the landlord anyway and have my eye on a unit the other side of town where there's a better catchment area and less competition.

The question is this: What should I be asking the snooker people for?

It goes without saying that any deal would be subject to the landlord nullifying any obligations I have toward the building in respect of dilapidations, etc. It also goes without saying that they'd have to pay my relocation fees, new advertising fees and legal fees.

However, since the move wouldn't be without risk - I would lose some existing memebers who walk to me, there ought to be more.

I've just spoken with three respected businessmen in my city who are heavily into property and they all suggested somewhere around 2 years net profit plus relocation and legal expenses as a starting point.

The snooker people are mad keen to get the building so the question is more what will they pay to get me out rather than what would I be happy with to go?

Releasing me from here would allow me, subject to obtaining planning consent for another gym, to open a smaller unit all on one floor (I'm spread over 2 floors here, making it more difficult to man).

What else would YOU be taking into account if you were being asked to move because I've probably overlooked 100 obvious things?
post edited by rightyho - 2007/06/14 16:52:04
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16 Replies Related Threads

    bertie
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 16:54:27 (permalink)
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    Write down everything you can think of by way of costs (including loss of income). Add 40-60% to make it worth your while. If that number looks attractive, I'd take it.
    #2
    Dr Z
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 16:58:37 (permalink)
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    Before you mention ANY figures ask them for an offer !

    They aren't stupid , and will have an accountant behind them - Get their offer first , then take it from there IMO
    #3
    SatansJester
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 17:00:53 (permalink)
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    Righty
    How much will you pay me not to forward the link to this thread to the snooker club?

    Just joking, before you hit me

    "Not all men are B@stards"

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    #4
    paulthebuilder
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 17:43:15 (permalink)
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    ORIGINAL: Dr Zoidberg

    Before you mention ANY figures ask them for an offer !

    They aren't stupid , and will have an accountant behind them - Get their offer first , then take it from there IMO


    Great advice. I'll do exactly that.

    Cheers Dr Z.
    #5
    cu3ed
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 17:47:57 (permalink)
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    Get the figure then add a %, unless they really make it a good offer to get you to piss off.

    This is the one time its profitable to not be wanted righty lol.
    #6
    Imy79
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 17:58:34 (permalink)
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    ORIGINAL: Dr Zoidberg

    Before you mention ANY figures ask them for an offer !

    They aren't stupid , and will have an accountant behind them - Get their offer first , then take it from there IMO


    Totally agree, they may be reluntant to do so and try to get a figure from you, but push them on the line of you need something to think about before making any decision to leave.

    Imy79
    #7
    ginasmg
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 18:02:54 (permalink)
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    you could make out that you dont realy want to move but for a price you would concider HELPING them out
    #8
    colin.d
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 18:06:09 (permalink)
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    Any offer should be in writing and also allowing for relocation, council taxes and the posible rise in inflation and rent, insurance over the next two years. They should be willing to pay for any possible repairs to the premises, video the entire gym top to bottom so your charming landlord cant come back with the not notified of this damage routine.

    "A man can be anything he wants as long as he,s willing to pay the price"
    #9
    Dr Z
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 18:29:32 (permalink)
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    Of course , they will probably come in with an offer that will offend you - I'd guess they will offer you the very bottom end of what they'd consider a reasonable offer - which you can simply turn down and give them a realistic request - but remember , they are the ones trying to "woo" you ....As far as they are concerned you need to appear reluctant to move & 100% happy with your current situation - Don't fall into the trap of appearing as keen as they are and dropping your price to get an agreement.
    The only problem is ... Can your landlord kick you out even semi-legitmately ? (i.e. lease , T&C etc) ... I seem to remember he is a bit of a monkey - so you don't want to push your luck too much and find yourself simply evicted with no money in your bin for the trouble

    post edited by Dr Zoidberg - 2007/06/14 18:30:05
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    paulthebuilder
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 19:04:58 (permalink)
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    ORIGINAL: Dr Zoidberg
    The only problem is ... Can your landlord kick you out even semi-legitmately ? (i.e. lease , T&C etc) ... I seem to remember he is a bit of a monkey - so you don't want to push your luck too much and find yourself simply evicted with no money in your bin for the trouble


    He's had a go a couple of times this year in a roundabout way - now I know why.

    He did a building inspection today and found the property to be in significantly better condition than when it was let to us.
    We pay the rent on time, abide by the by-rules of the lease - ie floor loading etc, and are up-to-date with our insurances, boiler servicing, NICEIC electrical wiring certificate, business rates, PAT testing, etc, so I think his T&C chances are quite limited.

    I'll meet with the snooker guy next week, hear what he has to say, see if he has an offer in mind, then take a look on paper at the most profitable route for us.

    As it stands, the business is doing well, the membership base is growing and profitability looks like being up year-on-year.

    Unless the offer is attractive, there is no incentive for us to move.
    #11
    Dr Z
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 19:16:28 (permalink)
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    ORIGINAL: rightyho




    As it stands, the business is doing well, the membership base is growing and profitability looks like being up year-on-year.




    ...One of the many benefits of a having has a couple of CFM promos ... You should be able to pull some remarkable growth figures out of the hat

    (I'd guess we only have about 20 members left still coming in from our last one in January / february .... but we show 400 + on paper / on the bank statements
    #12
    Golden Oldie
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 20:12:59 (permalink)
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    ORIGINAL: Dr Zoidberg

    Of course , they will probably come in with an offer that will offend you - I'd guess they will offer you the very bottom end of what they'd consider a reasonable offer - which you can simply turn down and give them a realistic request - but remember , they are the ones trying to "woo" you ....As far as they are concerned you need to appear reluctant to move & 100% happy with your current situation - Don't fall into the trap of appearing as keen as they are and dropping your price to get an agreement.
    The only problem is ... Can your landlord kick you out even semi-legitmately ? (i.e. lease , T&C etc) ... I seem to remember he is a bit of a monkey - so you don't want to push your luck too much and find yourself simply evicted with no money in your bin for the trouble




    Agree with this entirely. As the saying goes, "Only a fool accepts a first offer; and only a fool makes a real offer as his first offer". Have in mind a figure you're prepared to accept, make out you're doing really well, like the area, etc., etc., say everything's got a price but it's got to be worth my while... Let them make the first move. What if they offer more than you would have asked for? And that's the first offer! They want you to move. Make them do the work.

    Winners are just dreamers who didn't quit
    #13
    sillynarbie
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 20:46:38 (permalink)
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    Speak to your accountant mate, the only thing any of us here can do is guess, when subjects like this come up its best to talk to the experts.
    #14
    Skrewdriver
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 20:52:50 (permalink)
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    Slightly off topic, - i seem to remember reading that you were fed up with the whole gym game full stop. I'm surprised you want to set up else where




    #15
    Spirit Guide
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 22:01:57 (permalink)
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    righty dont forget to factor in the fact that you have just gone through a whole new advertising campaign in the local area to recruit new members
    #16
    ColonelH
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    RE: Next door wants me to leave my gym - what deal should I ask for? 2007/06/14 23:06:19 (permalink)
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    Take professional legal advice at an early stage

    Don't know much about your situation - I'm assuming from your post you're renting space for use as a gym. This would likely make it a business lease, and as such you may have "security of tenure" under the Landlord and Tenant Act 1954. For this security of tenure not to apply, you or the person who originally took the lease would have had to have signed a statutory declaration at the time (if it is a relatively recent lease - before about 2003 there was a court procedure to contract out). This ring any bells?

    tbh, most leases these days seem to be contracted out, but it's worth checking, as if you have security of tenure, I'd say your bargaining position may be stronger, as it's much harder to get you out at the end of your term if you want to stay on.

    As I say, worth getting professional advice IMO
    #17
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