I’m about to be signing the lease to open up a barbershop! Need help understanding build out.
So I’m about to sign the lease to have a barbershop in a town. The place needs a lot of work and the owner said he’s willing to fix it up. Until I got the lease info now he wants 10k down for a 30k job to fix the place how I want it. Just wondering if it’s normal to put down money even tho it’s outdated and at the end of my lease it’s not my building?
[{"id": "ib12onq", "text": "Ultimately build out can be negotiated as fully LL, fully tenant, or anything in between. You mentioned that you haven\u2019t signed a lease yet. Make sure that the lease very clearly states how much each party will contribute to the build out in the lease. Make sure it mentions whose responsibility it is to do overages on costs (if not fully the responsibility of one party to build it out). Make sure you negotiate your rent in conjunction with how much you build out the space yourself. Good luck with your new business!", "replies": [], "depth": 1}, {"id": "ib45e7p", "text": "I always found it odd that someone would pay to upgrade a building they don\u2019t own. In most cases how do the costs get split?", "replies": [], "depth": 1}, {"id": "icfcrng", "text": "1) Are you taking the space as-is? If that is the case then you will be responsible for all the repairs done inside the space after you move in. \n\n2) Build out - if you are building up the space then why are you giving away money to the landlord? it should be the other way around - the LL to provide an incentive to the tenant to build the space (keep in mind that everything is negotiable)\n\n3) If the space/ base building is in a rough shape I would push back and ask the LL to perform all the repairs , or include appropriate language in the lease that the LL will do the repairs at its own cost\n\n4) If you build out the space , keep in mind that at the end of the lease the landlord might have the right to request you to return the space to its original condition. This will create a liability for you.\n\n5) You may need some professional advise , either from a broker or real estate lawyer in your area.\n\n&amp;#x200B;\n\nhopefully this helps.", "replies": [], "depth": 1}]