Ok I have a chance to rent a ss car wash...it has not been running for about 1 year.. it is really a nice place but needs a little TLC with vacs foam brushes etc. the inside is really nice BUT I seen that the PVC pipe that holds the water was broke due to freeze? The owner of the place rented it out to a guy for 3 years and he said it all worked when he left....with that said What opinions are out there on something like this? He is offering me to rent it for 500 a month and it is 5 bays in a good location. he also said he would give me a couple months free...but that makes me nervous thinking something may be wrong with it......Is there a way to check the pumps out somehow to test them to see if they work before I waste money having the city hook up the water? I think if I can test the equipment before I make the decision would be the best thing
Car Wash Rental
- Thread starter MegaBlast
- Start date
pitzerwm
Active member
IMO, put in the contract that all money spent on repairs/updating be deducted from the rent. Otherwise, I'd walk.
MEP001
Well-known member
$500 a month to rent a wash sounds too good to be true, especially if he's willing to give you a couple months free to get it going again. I'd bet there's unpaid utility bills that need to get paid to restore service, and if the pipes are broken there's almost definitely other freeze damage too.
Either you have found a really generous person who's willing to let you make money off his property while he collects just enough to pay his property tax or he's going to let you get it running for him and kick you to the curb.
Bill's suggestion is a good one, but at $500 a month there's not really any rent from which to deduct repairs. One high-pressure pump replacement is more than $500.
If you can get a good lease written up that protects you, do it. If you can't make a wash work with that rent, forget the car wash industry.
Either you have found a really generous person who's willing to let you make money off his property while he collects just enough to pay his property tax or he's going to let you get it running for him and kick you to the curb.
Bill's suggestion is a good one, but at $500 a month there's not really any rent from which to deduct repairs. One high-pressure pump replacement is more than $500.
If you can get a good lease written up that protects you, do it. If you can't make a wash work with that rent, forget the car wash industry.
robert roman
Bob Roman
Based on the offer of several months free rent and amount of rent, I don’t sense much urgency in this seller.
If he doesn’t have a mortgage and has better things to do, this may work out for both of you. His property taxes get paid and you get to launch a new business.
However, this doesn’t solve your issue; does it make sense to do so.
As someone new-to-the-industry, you should consider having audit performed by an equipment distributor and estimate the cost to bring the facility to a commercially viable state.
Then you would need to do the financial engineering to see if the place could be a good investment of your time and money.
If he doesn’t have a mortgage and has better things to do, this may work out for both of you. His property taxes get paid and you get to launch a new business.
However, this doesn’t solve your issue; does it make sense to do so.
As someone new-to-the-industry, you should consider having audit performed by an equipment distributor and estimate the cost to bring the facility to a commercially viable state.
Then you would need to do the financial engineering to see if the place could be a good investment of your time and money.
Robert is right. If it has been closed that long and there is obvious damage to lines you can assume there is other problems here that could cost quite a bit of money. Get an agreement in writing on terms and length of lease before doing anything. MEP is right pointing out that you could get it running and have it taken away without some protection in writing.
You also have to get the water and power turned on to allow a reputable distributor assess the condition of the wash. In our area you can get this done on a short term basis for a small fee. Make sure you get a firm quote in writing on rehabbing the site.
I have seen some scenarios like this turn out well for both parties but I have also seen some real disasters where either the wash is taken back after getting it going again or hidden costs of rehabbing the site going out of sight.
The old saying that "if something is too good to be true it probably isn't" may apply here.
You also have to get the water and power turned on to allow a reputable distributor assess the condition of the wash. In our area you can get this done on a short term basis for a small fee. Make sure you get a firm quote in writing on rehabbing the site.
I have seen some scenarios like this turn out well for both parties but I have also seen some real disasters where either the wash is taken back after getting it going again or hidden costs of rehabbing the site going out of sight.
The old saying that "if something is too good to be true it probably isn't" may apply here.
Earl Weiss
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IMNSHO if you aren't going to check it out without hooking up water.... PASS. Too many possible snakes in the grass.
Also, another snake. When were the pits last pumped? How much to pump all pits and clear lines if needed?
