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Thread: Need help with lease agreement for property use.

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  1. Default Need help with lease agreement for property use. 
    #1
    Join Date
    Dec 2008
    Location
    Mt. Vernon, TX
    Posts
    108
    This is going to be long and I apologize, but wanted to provide as much details as possible.

    We have been a 3rd party fundraising haunt for a few years now, but this has left us with very little funds to cover improvements, off season storage or money to secure a more permanent building. Last year we weren't able to find a location so the haunt was a no go.

    This year I've found a suitable location and an owner willing to let us use the building for our haunt with no money up front. If we can raise enough money to pay the rent for the year we will have the option to stay. No money will exchange hands up front and the initial conversation was to split the profits after all expenses are paid. The building rents for $2,000 a month and we will need access to the building for approximately 4 months. I'm thinking about offering 1/2 of our profits (after expenses) if we make less than $16,000 or the usual rent of $8,000.

    We will be responsible for utilities, advertising, insurance as well as everything associated with the haunt and those items will be considered expenses.

    Do you think that's a fair offer? Does anyone have an example of a lease agreement I could use and modify?


    There have been free haunts in this town before so I don't think we'll have any issues with the city. The building is farily new construction and should have no problems meeting the city's/fire marshals approval.

    Please mention anything you think I've not thought of that could be an issue down the ride.

    Also need recommendations for event insurance.

    Thanks in advance
    Every job is a self-portrait of the person who did itů Autograph your work with excellence!
     

  2. Default  
    #2
    Join Date
    Apr 2012
    Location
    Omaha, NE
    Posts
    156
    In any industry its better to get the city and any inspectors involved before you do anything. Get them in the building and see if its feasible BEFORE you sign anything.

    Sorry im not much help, but at least that much I know
     

  3. Default Lease 
    #3
    Join Date
    Apr 2012
    Posts
    76
    I signed a lease with a building owner on the same terms as you. I think half is way to much but I guess it matters what you plan on bringing in. Also what is the population of your town and towns that are about a half an hour from you? The haunt I bought brought in over six figures so half of that would be over 50k! I offered the building owner 30% and I think that was fair and he did to. I just think there is way to much cost in running a haunt to offer half. You have to get insurance,electricity,paint,costumes,building material,advertising?,flame retardant[which is 200 to 350 dollars per. five gallon bucket], some sort of pay/incentive for your actors,new props,renovations every year to your show to offer your guests something new every season to keep them coming and so on. On the other side of the coin if it gets your foot in the door go for it! I just figure I will at least want to put 30% of my revenue back in my haunt and 30% to the owner, so that leaves me 40% to buy incentives for my actors,pay other bills and profit. Even though you have a chunk of that stuff maybe all of it you will still have to buy more of all that stuff in a year or two. I just started pro to so my calculations could be way off that is just how I feel.
     

  4. Default  
    #4
    Join Date
    Dec 2008
    Location
    Mt. Vernon, TX
    Posts
    108
    Quote Originally Posted by scottylmt View Post
    In any industry its better to get the city and any inspectors involved before you do anything. Get them in the building and see if its feasible BEFORE you sign anything.

    Sorry im not much help, but at least that much I know
    Thanks scotty that was definitely on my list of things to do, thanks for the input.

    Quote Originally Posted by son-of-sam View Post
    I signed a lease with a building owner on the same terms as you. I think half is way to much but I guess it matters what you plan on bringing in. Also what is the population of your town and towns that are about a half an hour from you? The haunt I bought brought in over six figures so half of that would be over 50k! I offered the building owner 30% and I think that was fair and he did to. I just think there is way to much cost in running a haunt to offer half. You have to get insurance,electricity,paint,costumes,building material,advertising?,flame retardant[which is 200 to 350 dollars per. five gallon bucket], some sort of pay/incentive for your actors,new props,renovations every year to your show to offer your guests something new every season to keep them coming and so on. On the other side of the coin if it gets your foot in the door go for it! I just figure I will at least want to put 30% of my revenue back in my haunt and 30% to the owner, so that leaves me 40% to buy incentives for my actors,pay other bills and profit. Even though you have a chunk of that stuff maybe all of it you will still have to buy more of all that stuff in a year or two. I just started pro to so my calculations could be way off that is just how I feel.
    son-of-sam I'm in a very rural area. Our first 2 years as a 3rd party charity haunt fund raiser we only averaged about 1800 people over 8 or 9 nights. At $10 a head for a 4500 sq. ft haunt we'd only bring in $18,000 and then we plan to cover expenses (i.e. permits, insurance, what little advertising we can do).

    We have the ability to put on an 8,000 sq. ft. haunt (did it 2 years ago) and the new location should allow us to put on a unique show with minimal additions. This is a one time deal (foot in the door) in hopes of raising enough money to pay for a years lease.

    We're hoping this new location on the service road of an interstate will give us much needed exposure and help with our numbers. We also plan to be open at 11 possibly 13 nights this year.
    Every job is a self-portrait of the person who did itů Autograph your work with excellence!
     

  5. Default  
    #5
    Join Date
    Dec 2008
    Location
    Mt. Vernon, TX
    Posts
    108
    Has anyone done this kind or considered doing this kind of revenue sharing lease agreement?
    Every job is a self-portrait of the person who did itů Autograph your work with excellence!
     

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