[mlscontractcleaner]

To those of you who rent a unit to run your business from I have a question.

What, besides the actual monthly rental, is the true cost per month of running your unit?

I don't want actual figures; that'd be rude and nosy, I just want an idea of what to expect as my business is becoming too big to run from home.

The costs I've thought of are: Rent, business rates, water, electricity, telephone/internet connection and some sort of buildings/contents insurance.

I'm sure there are more charges than this and I really want to avoid any nasty surprises; I'm trying to calculate roughly what I'd need to put away each week to make a decent unit affordable.

By "decent unit" I mean a proper unit on a proper estate, roller shutter door, office space, room to drive in two or more Transit vans, not a shed on a farm lol.

Any advice would be warmly welcomed.

[Smurf]

A chap I know his firm pays out approx £84,000 per month just on rent (big boys league). Now they are looking into building their own warehouse and distribution centre as would work out cheaper in the long run.

I think taking on a small size unit you have to think through it vey carefully and best get legal advice on the lease contract too or you might end up being stitched up like a kipper.

Another chap I know moved premmises but still had to pay rent on old unit for another year as was tied into the lease contract. Mind you it did not bother him much as he is loaded anyway.

[Spruce]

In the motor trade heating a medium size show room was costly. 

[Rob@Blast off]

And what's wrong with a shed on a farm? 

[mlscontractcleaner]

I'm afraid of cows!!

[Smudger]

Try if possible to get a council unit ours is big enough to house 3 large vans 2 smaller vans ibc tanks all the other gear and toilet and office space, yes it's a 3 year lease but can be terminated with 3 months notice
Some private leases hold you for the whole term of the lease, which can be 10 years or more, or you get a bill for roof repairs etc.. ( private lease get a solicitor to check it )

Make sure it's small enough not to be liable for biz rates - heating you don't need it!  Admittedly Mrs smudger works from the home office. Then it's water, electricity and service charge ( grass cutting etc to estate ) that's about it

It's a neccasary evil, what I could do with that money rather than handing it over every month 

Darran

[Bungle]

A chap I know his firm pays out approx £84,000 per month just on rent (big boys league). Now they are looking into building their own warehouse and distribution centre as would work out cheaper in the long run.

I think taking on a small size unit you have to think through it vey carefully and best get legal advice on the lease contract too or you might end up being stitched up like a kipper.

Another chap I know moved premmises but still had to pay rent on old unit for another year as was tied into the lease contract. Mind you it did not bother him much as he is loaded anyway.

84k a month 

[Smudger]

A chap I know his firm pays out approx £84,000 per month just on rent (big boys league). Now they are looking into building their own warehouse and distribution centre as would work out cheaper in the long run.

I think taking on a small size unit you have to think through it vey carefully and best get legal advice on the lease contract too or you might end up being stitched up like a kipper.

Another chap I know moved premmises but still had to pay rent on old unit for another year as was tied into the lease contract. Mind you it did not bother him much as he is loaded anyway.

84k a month 

That's nothing to the gutter clearing he does 

Darran

[Mick Kent]

I have never seen the point in having a unit for window cleaning. Surely its cheaper and more cost effective to supply staff with there own ro and to let them take van home etc than to shed out £600 plus a month for a unit/storage yard.
We have 4 vans out and i have no more need than to use a laptop indoors in the front room to update work etc and a garage at the back to store water to fill the vans. We do window cleaning, pressure washing and carpet cleaning and manage more than fine without the need of a unit.

what advantages are there to having 1? For me its not cost effective at all.

[Smurf]

A chap I know his firm pays out approx £84,000 per month just on rent (big boys league). Now they are looking into building their own warehouse and distribution centre as would work out cheaper in the long run.

I think taking on a small size unit you have to think through it vey carefully and best get legal advice on the lease contract too or you might end up being stitched up like a kipper.

Another chap I know moved premmises but still had to pay rent on old unit for another year as was tied into the lease contract. Mind you it did not bother him much as he is loaded anyway.

84k a month 

That's nothing to the gutter clearing he does 

Darran

I wish 

[Smurf]

I have never seen the point in having a unit for window cleaning. Surely its cheaper and more cost effective to supply staff with there own ro and to let them take van home etc than to shed out £600 plus a month for a unit/storage yard.
We have 4 vans out and i have no more need than to use a laptop indoors in the front room to update work etc and a garage at the back to store water to fill the vans. We do window cleaning, pressure washing and carpet cleaning and manage more than fine without the need of a unit.

what advantages are there to having 1? For me its not cost effective at all.

+1

[Smudger]

We employ 2 part timers, so the vans are not dedicated to one employee
1 van is pressure washing only
Another gutter clearing and Windows
Then the rest window cleaning but may go out one of two men

 Also I don't have to worry about them protecting everything from frost as they are inside overnight

Darran

[mlscontractcleaner]

The frost issue is a big bonus as far as I'm concerned; no more messing about trying to protect the vans from freezing up.

Also I want to separate work from home; we've been running from home for the past twenty five years so it'll be nice to have to actually "go to work".

Each to their own I guess.

[Smurf]

All the same you have to be turning over a good amount to warrant renting a unit to operate from.
I would rather put the added cost of renting a unit  into buying property myself as is dead money otherwise and is just lining someone else’s pockets for the privilege.


I remember a few years back two young window cleaning lads on dragons den getting backing from Duncan Bannatyne  to go national and wanting to open up regional bases in different towns. One being local to me so was a big opening ceremony, recruitment drive for staff, new vans etc but within six months the unit was closed down so all the people they recruited lost their jobs. Talk about failure or what but was kept very quite for some strange reason 
 

[ascjim]

I remember seeing them two on Dragons Den.

I am looking for a very small unit next year to work from for the same reason, to separate work from home.

[Smudger]

You sound happy people lost their jobs...

Darran

[Smurf]

You sound happy people lost their jobs...

Darran

No I was not happy that people lost their jobs smudger but still found it funny they failed bigtime so Bannatyne pulled the plug but still kept it very quite they had. Now that's was funny as he must have lost a mint on those two clowns

[Walter Mitty]

I'm a sole trader and I rent a place.
It's about necessity.  It's relatively cheap as it's a storage place that has a water and electricity supply.
I live in a flat and circumstances prevent me running electricity or water out to the van - I often have to park in another road.  An on board RO would prevent me from using my vehicle in the evening - it's my only vehicle.
Sometimes renting a work place is the best option.

[Walter Mitty]

You sound happy people lost their jobs...

Darran

No I was not happy that people lost their jobs smudger but still found it funny they failed bigtime so Bannatyne pulled the plug but still kept it very quite they had. Now that's was funny as he must have lost a mint on those two clowns

The general idea was probably sound.  A lot of people screw up by trying to expand too fast.

[Roberto Smith]

I'm a sole trader and I rent a place.
It's about necessity.  It's relatively cheap as it's a storage place that has a water and electricity supply.
I live in a flat and circumstances prevent me running electricity or water out to the van - I often have to park in another road.  An on board RO would prevent me from using my vehicle in the evening - it's my only vehicle.
Sometimes renting a work place is the best option.

I'm in the same sort of situation but use a twin di in van and customers tap water. £150 for 2 sacks of resin lasts about 3 months got to be a lot cheaper than renting?