If I am already paying rent on a commercial property to run a business in, is it appropriate for the landlord to expect a percentage of my profits

Asked by Donnajoy, Richmond, VA Thu Mar 1, 2012

Landlord has provided some funds and/or work on property preparing it for my business, but it is his property. I have paid for many upgrades I will not be able to recuperate if my business fails. They have improved his property. He wants 10% of my gross profits to maintain his building, which he lives in and which I pay him rent for. Is this standard practice?

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6
Kelly DeLucia, Agent, Newport News, VA
Thu Mar 1, 2012
I have gone through a process myself with my business 3D Sports so I am talking to you more as a business owner than a Realtor. NO it is not standard. however, you may have made a big mistake by moving forward and investing money in upgrades without having a clear understanding/agreement with landlord 1st. If you do have a contract/lease signed by both parties and it does not include the 10%, then you are under no obligation to agree to amend the contract. If you don't have something in writing, I say this to you. STOP everything and do not spend another dime or second in planning to move forward until you have hashed out the details with your building owner and put it all down in writing... and SIGNED IT.
1 vote
Raffi Bandaz…, Agent, Richmond, VA
Thu Mar 1, 2012
It all depends on what your lease says. If you are not clear on the terms, you should have your attorney look at the lease.
0 votes
FSBOsuccess, Home Seller, 28590
Thu Mar 1, 2012
What does your renter's agreement say? That will govern everything.
0 votes
, ,
Thu Mar 1, 2012
I could understand gross revenue, but not gross profit. And I have never seen either clause in a mom & pop, guess it is possible.
0 votes
Roland Vinya…, Agent, Sprakers, NY
Thu Mar 1, 2012
It's whatever the two of you have agreed to do - which will be spelled out in your lease. do you have to make monthly payments as well? Usually it's one or the other, though there is no reason it cannot be a little of both.
0 votes
Vicky Chrisn…, Agent, Purcellvile, VA
Thu Mar 1, 2012
What does your lease say? That's what governs this agreement.
Web Reference:  http://www.vickychrisner.com
0 votes
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