Shed Rental

[stidsy]

Morning Ladies and Gents,

I’m looking at ways to plug the cash flow deficit that will be left by BPS over the next 7 years.
We have been approached by a few companies to store boats all year around given our proximity to the coast. Now, for the sake of argument let’s remove the issues of business rates and change of use for one minute and concentrate on the course rental figure per/sqft PA as they are separate issues to be


The shed area is 10,500 sqft with a electric and water supply. It’s fully secure, with a concrete floor, wind and waterproof. CCTV covers the yard area and access and sits within a secure compound.

Ive a rough estimate in mind given the above services and location but is anyone doing anything similar that I could bench mark against?

Thoughts?

 

[warksfarmer]

Morning Ladies and Gents,

I’m looking at ways to plug the cash flow deficit that will be left by BPS over the next 7 years.
We have been approached by a few companies to store boats all year around given our proximity to the coast. Now, for the sake of argument let’s remove the issues of business rates and change of use for one minute and concentrate on the course rental figure per/sqft PA as they are separate issues to be


The shed area is 10,500 sqft with a electric and water supply. It’s fully secure, with a concrete floor, wind and waterproof. CCTV covers the yard area and access and sits within a secure compound.

Ive a rough estimate in mind given the above services and location but is anyone doing anything similar that I could bench mark against?

Thoughts?

Extremely area dependent. Around here we can get £4.50/sqft plus bills/rates for basic storage as long as it’s secure and waterproof. Something like classic car or performance car storage in high end buildings will double those prices.

For your location and the fact it’s boats, BUT because it sounds like basic storage then I’d have a go at £6.50/sqft plus bills/rates.

 

[B R C]

Is it your aim to rent the whole shed to one company? Just storage, no one working on site?

 

[Mur Huwcun]

Last time we looked into it going on all the others doing similar locally we were going to struggle to get much more than £300 per year to store caravans inside. When we measured and marked it out not that much will fit in a shed anyhow. The problem with packing them in is that typically someone will need the one at the back out earlier than they said etc etc. It's gone on back burner but we did look into the possibilities of storing over winter the ones that have seasonal pitches and including, collection, servicing and delivery. Then the largest local site cancelled all their seasonal pitches due to to much hassles so the possible pool of 30 caravans went to nil!

 

[stidsy]

Is it your aim to rent the whole shed to one company? Just storage, no one working on site?

Yes, they would have exclusive use of the shed with the scope to put in a little workshop for maintenance and servicing etc

 

[B R C]

I guess you need to start by seeing what commercial property is available locally, got to know the local market.

 

[Still Farming]

Compare to comparable industrial site rentals and reduce ( as agri without PP and Valuation Office rates listings, as stated)

 

[7610 super q]

Oh dear god, not boats... Professional yards store them in racks ( outside ) for about £170 per M.
Folks that don't want to pay this will be the ones you will unfortunately attract. They will want access 24/7 including over Xmas, and during lockdown. Your place becomes a dumping ground for f**ked engines and other sh!te. They will always complain their boat has got dusty. They will always complain about what you charge. In short, I now have a policy NO BOATS STORED HERE UNDER ANY CIRCUMSTANCES.

 

[B R C]

I think he’s looking at renting to a presumably professional company rather than a load of individual cheapskates....

 

[Still Farming]

I think he’s looking at renting to a presumably professional company rather than a load of individual cheapskates....

Sunseeker possibly then is it???

 

[stidsy]

Sunseeker possibly then is it???

Until a contract is signed I’m reluctant to say but the company in question is as professional as they get so am confident the yard will not turn into a scene from Steptoe and Son.

 

[Doing it for the kids]

Letting to one entity is the way forward

get them to indemnify on future rates.

look at local compariables or ask an agent but £4 psf sounds reasonable.

access and noise will be your main gripes, be sure to stipulate with a plan where they can and can’t go and what hrs.

at that scale you may want to consider planning unless it’s well hidden. Be aware that the council love using google earth, but they have a more up to date version

 

[Still Farming]

Until a contract is signed I’m reluctant to say but the company in question is as professional as they get so am confident the yard will not turn into a scene from Steptoe and Son.

They most probably know all the rates and buildings within 40 miles also?

 

[7610 super q]

I think he’s looking at renting to a presumably professional company rather than a load of individual cheapskates....

Yes probably best. Failing that, charge top wack, make plenty of rules, make sure they've got insurance, and hope charging big money sorts the wheat from the chaff. Funny thing boat owners, 20% are loaded, the other 80% try to run their hobby on the cheap. Bit like horsey folk.......

 

[chaffcutter]

Let to include a working area should be a bit more that bare storage, and what they are storing is expensive, I would think you ought to get £5.00 a sq ft in those circumstances, they insure contents you just insure the building.

 

[Bertram]

If it’s tidy, between £5/6 ft. Give them a tenancy, they’re liable for the business rates anyway so that’s not your issue. Depends on whether you want to go for change of use or keep it under the radar.

 

[Grass And Grain]

get them to indemnify on future rates.

That's interesting.

I don't understand exactly what you mean. Would you mind elaborating what you can do, and how you do it.

 

[tepapa]

Are these prices per square foot, per day,week, month or year?

 

[Doing it for the kids]

That's interesting.

I don't understand exactly what you mean. Would you mind elaborating what you can do, and how you do it.

if going forwards rates ever become applicable they are responsible for them. Keep them sharp on Not advertising / leaving stuff about that google earth can see

and at that size the council will love to find them,smaller units aren’t an issue

Are these prices per square foot, per day,week, month or year?

commercial is normally worked on a per sq ft basis, psf. That an annual rent so a 10,000 ft2 gives a nice 40k per annum passive income

 

[How much]

if you intend to do a commercial lease it has to be a commercial building with and EPC electrical inspection and so on .

you could let it on a license that would probably circumnavigate some of that but if there is workshop involved there should still be a fire risk assessment by the tennant so an emergency exits and so on may need to be required

have a word with your insurance company , the cover is likely to increase maybe not by a huge amount in terms of cost but you best know that before getting committed. insurance would usually be chargeable to the tenant on a lease but included on a license

in value terms you will probably be looking at £3.50 to £4.50 area