[3 / 1 / ?]
Quoted By: >>16405413
I own a building with my business on the first floor and three apartments on the top floor.
Last Winter (when most apartment buildings have people locked into leases since no one wants to move in the cold and snow), 2 of my 3 apartments were empty due to one tenant breaking lease and the other getting remodeled. I needed to think of something fast so I did what most folks do in that situation - I offered the apartments at a discount. I actually increased the discount 3 times over the course of posting ads. So, I came up with another idea. In addition to discounted rent, I'd offer to give an additional discount based on the success of my business, essentially sharing my profit with my renters for helping me out by renting from me in the winter months. At the end of it all, they're paying 65% of what rent would normally be plus getting credit applied to their rent based on my P&L every month.
So, new apartment buildings have been cropping up all over my neighborhood resulting in unprecedented new business. On the one hand I'm celebrating but on the other, I have a problem. I'm writing a check every two months to the two tenants that I have locked into leases. When we offered the apartments, I was making significantly less and so the percentage of my profits made sense. However, the increased sales hasn't raised my overhead or labor by much and my cost of goods by only a small amount. The end result being that I'm writing checks to those tenants.
I've asked my lawyer who told me that I took a risk and lost. I know it's random but does anyone on here have any additional advice?
Last Winter (when most apartment buildings have people locked into leases since no one wants to move in the cold and snow), 2 of my 3 apartments were empty due to one tenant breaking lease and the other getting remodeled. I needed to think of something fast so I did what most folks do in that situation - I offered the apartments at a discount. I actually increased the discount 3 times over the course of posting ads. So, I came up with another idea. In addition to discounted rent, I'd offer to give an additional discount based on the success of my business, essentially sharing my profit with my renters for helping me out by renting from me in the winter months. At the end of it all, they're paying 65% of what rent would normally be plus getting credit applied to their rent based on my P&L every month.
So, new apartment buildings have been cropping up all over my neighborhood resulting in unprecedented new business. On the one hand I'm celebrating but on the other, I have a problem. I'm writing a check every two months to the two tenants that I have locked into leases. When we offered the apartments, I was making significantly less and so the percentage of my profits made sense. However, the increased sales hasn't raised my overhead or labor by much and my cost of goods by only a small amount. The end result being that I'm writing checks to those tenants.
I've asked my lawyer who told me that I took a risk and lost. I know it's random but does anyone on here have any additional advice?
