Selling business… should I renew my Lease?

[Integraoligist]

Here is my situation, my Yearly lease ran out a couple months ago and neither of us (me or the Landlord) paid any attention and did not get it renewed. So essentially right now I’m on a Month-to-Month lease.

So, because I’m looking to sell the business and already have it up on the market, should I go to my Landlord and renew the 1 year lease or keep it month-to-month?

Thanks all!

 

[royster13]

Kind of dammed if you do and dammed if you do not…The length of lease will matter to the buyer…Some will want long term and others will not want to be locked in…But generally a long lease help you maintain the value of your business because location is an important factor…

 

[Piper]

There’s no way that I would even consider buying a restaurant if I couldn’t obtain at least a 5 year lease. I think being month to month is going to severely reduce the value of your business. Somebody could buy the business and have the Landlord toss him out after a month, or extort massive rent from him.

You may not have to renew, but I’m willing to bet any potential buyer is going to put the ability to secure a long term lease renewal as a stipulation of the purchase.

 

[Pakula_s_Pizza]

You should speak to your landlord about any lease he would give a new tenant. Anybody with restaurant experience wouldn’t pay for a place they won’t be in for a while, unless your just sellling for
the price of your equiptment. (10,000-20,000) to protect yourself I’d say try to get a 10 year with a 5 year option, without a personal garuntee. A 1 year lease is how you rent an apartment, not a retaurant. Protect yourself first, so any buyer who comes in, is in a postion to succed.

 

[bodegahwy]

Unless you have a lease that can be assigned to a buyer or the Landlord is willing to give them a new lease upon purchase, you have nothing to sell.

It takes some time to sell a business. If I were in your shoes, I would ask the LL for a 1 year lease with a 5 year option. Another way to go would be a five year lease with an out for you with an agreed penalty. Either that, or just cowboy up and do a new 5 year lease.