A gym is a commercial establishment equipped with facilities for doing physical exercise. A gym in order to be truly reachable to its customers needs to provide them with a comfortable environment to undertake the exercise and achieve their fitness goals.
The gym owner has to make sure that clean premises, with well-equipped machinery, trained staff and other conducive environment is created and made available. If you are searching for gym rentals, then you should make use of the contact us section. Contact the owner and gets the deal done!
Ordinarily, a gym owner would enter into a commercial lease with the owner of a commercial building or establishment and take some space on hire for setting up the gym.
A commercial lease is which is entered into by the tenant with the landlord of a commercial building with the interest of setting up a business. This commercial building can be a showroom, retail space in a mall, in a market place, industrial buildings, offices etc.
Such leases unlike the traditional leases house leases which are of 11 months are usually are of a longer time period, sometimes 5 years or more.
The prospective tenant will have to negotiate with the landlord about rent amount, structural modifications needed particularly for a business, the overhead costs, security deposits, maintenance charges etc.
The rent of the building can be negotiated to keep in mind the location, the precise square foot of area, the floor on which we are leasing out space, the ventilation, natural lighting, the rent in the area of similar properties and the amount which the property owner is asking. The rent can also be decided according to the consumer price index-CPI, this being a neutral percentage rate not decided by either of the parties. The rent shall be decided accordingly.
On what date shall the rent become payable. One can negotiate according to when it is convenient to oneself i.e when gym membership payments are received, say the end of the month, beginning of the month. In case of default what is the penalty and how will it be charged.
- Date of Commencement and Term of Lease
The term of the lease shall be decided, in case of commercial ventures the lease period shall be of a few years as opposed to a home rental agreement in which the lease is ordinarily of 11 months. The term could be of 5 years or even less though generally, it is more because the costs involved in setting up a commercial venture is high and the place of the business cannot be changed frequently.
- Structural Modifications
Once the premises to be taken on lease has been identified, the first step would involve to work out if the space which is available will fulfil all the needs of the gym. Will all the exercise equipment fit inside, will there be enough carpeted area for exercises such as yoga and general moving around of the staff, is there some separate space for the office and for the trainers to sit, will there be enough space for facilities such as changing rooms, toilets etc.
All in all, it has to be negotiated if any small scale or large scale modifications can be made to the structure to make the space commercially viable and correct in conformity with the standard of business.
Once the building owner gives you permission regarding the modifications the changes can be chalked out clearly keeping in mind the building laws of the area.
- Security deposit and percentage of increase in rent
The security deposit asked by the owner, how much you can and want to pay, how much amount shall be returned to you once the lease is over. In case of breakage shall it be deducted from the security deposit, on which all default shall a deduction in the security deposit be made.
- Maintenance Charges
The owner will inform you about the maintenance charges of the buildings. It has to be seen what are the charges in the area/building, are the charges asked from you unusually high. Are you paying maintenance charges for only your portion of the building, what is included in the maintenance charges that you need to pay them.
For eg, do the maintenance charges include upkeep of the building from outside, cleanliness of the flight of steps to the gym, using a common lift, the garbage collection charges, the water bill, the chowkidar bill etc. here you may negotiate on things which you do not need. Say you are hiring a security guard for the gym and you do not need the chowkidar, in that case paying his charges in the maintenance is not what you want.