Need advice please

[MrandMrs Smith]

Hi, I am looking to open a coffee shop in a local village. The building that I wish to lease is run by a committee of Trustees. I have to sit in front of a panel along with a few other prospective companies who also wish to lease the building. There are a series of questions that all three companies are being asked. One of the questions is expected turnover years 1-3.
I haven't actually been agreed a lease on the building and I'm questioning the reason that they would ask for my turnover. Is this normal for landlords to ask for this kind of information prior to setting out a pro-forma contract with their tenants?

Thanks in advance.

 

[Clearaccy]

To make sure you can afford the repayments.

Do you already have a business plan?

 

[Mr D]

As a business about to open up they would expect you to plan for what your sales are going to be going forward.
In other words will you plan to be affording the rent in 12 months time, a couple of years etc.

You don't have to give information out. They also don't have to rent to you.

Its not as if they are asking for secret information or that you will be unable to provide it.

 

[MrandMrs Smith]

I've given them a business plan and they have seen that the rent can more than easily be afforded for at least the next 5 years even if I made no profit, which is not my intention, of course. I inherited some money and this is being put to good use. I've not hidden anything from them. I thought that I had covered all angles. It just seems strange to me that I now have to sit in front of a panel and give them this information again. I previously looked to renting another unit (which fell through from landlord end not mine) and was never asked to provide these turnover figures (again I had a business plan already). I feel like I am being subjected to the kind of questions a bank manager would ask if I were asking for a loan. Which I'm not.

I didn't try to put across that my information was secret - I am new to business, I just want to make sure I am being treated right. Thanks for your input though.

And you're right. They don't have to rent to me. I had figured that one out already.

 

[Mr D]

Last place I rented didn't ask for that information. Helped an organisation rent out a couple of rooms in their building and they asked for that information from the client who it later turned out had made the figures up. But still there so not much said at the time.

 

[Clearaccy]

I would have a contingency plan in place just in case they decide to rent to someone else.

Best of luck!

 

[MrandMrs Smith]

Thanks @Mr D, I appreciate your replies. I guess that it will be a case of going along to the panel and seeing what happens. I've already dotted all the i's and crossed the t's as far as I can tell. Now it's just a case of fingers crossed.

 

[billmccallum1957]

If the property is managed by trustees, they will have a legal obligation to act in the best interest of the trust, which is why they may ask more than a traditional landlord.

As they are asking all prospective tenants the same questions, why would you be concerned?

 

[Mark T Jones]

I’m confused. If you’ve given them a business plan covering the nex5 5 years, surely they have this information already?