What to charge for the use of a workshop?

muddlemand · 14 January 2020 at 5:35PM

AdrianC wrote: »

You're two grown adults.

Sit down, and come to an agreement between you.

I don't think there's anything childish about asking a "friendly" group of people more experienced than me, what might be reasonable.

muddlemand · 14 January 2020 at 5:37PM

caprikid1 wrote: »

Ask him what he thinks is fair, he may suggest a price that's more than you want.

Thanks, but I wouldn't know whether it's ridiculously low or ridiculously generous!

getmore4less wrote: »

Ask if it is temp to get going or more permanent because it is big enough.

What is access like?

Access is easy with parking next to it. He said initially that it's probably six months to a year while he gets going, but that may be because he knew I'm planning to move (and he may not have realised how far I am from making that real).

muddlemand · 14 January 2020 at 5:39PM

I was just looking at ads for workshop space to rent around here, but can't see anything as small as this.

muddlemand · 14 January 2020 at 5:42PM

Exodi wrote: »

If you've always considered it a 'cluttered, cobwebby space', I think it would be, putting it politely - cheeky, to suggest a commercial rate to someone - let alone a friend.

The price will be somewhere in the middle of 'how much would you need to for it to be worth your time' and 'how much would he be willing to pay for it'.

I have no idea what I'd pay. As I just posted (sorry, hadn't seen your reply then), I have searched for similar to get an idea, but it hasn't given me an idea. As i said before, i may just ask him to cover costs but he seems to expect to pay something. And it isn't me suggesting!

need_an_answer · 14 January 2020 at 5:42PM

Why don't you suggest that he pays you a percentage of the sales he makes?

muddlemand · 14 January 2020 at 5:43PM

muddlemand wrote: »

I have no idea what I'd pay. As I just posted (sorry, hadn't seen your reply then), I have searched for similar to get an idea, but it hasn't given me an idea. As i said before, i may just ask him to cover costs but he seems to expect to pay something. And it isn't me suggesting!

And it's only cobwebby because i don't go in there, and cluttered with chairs etc that can be moved out - or left there if he doesn't mind them.

muddlemand · 14 January 2020 at 5:46PM

deannatrois wrote: »

Its a large shed he will make into a studio at his own cost. I doubt it will be very warm so if he plans to work in it this time of year, it will need either heating or insulating in some way. Not cheap. Personally I'd charge a minimal amount for six months, then increase it presuming he is making a go of his business. You can have friendly discussions with him about this.

Surely you can't really be considering charging him a commercial rate? You do realise there is a huge difference between a cobwebby shed and a unit on an estate? One way to lose a friend I suppose lol.

However, if he is running a business from your shed I wonder if this will have tax implications. I know nothing about this.

Heating we have talked about and will work out.

I absolutely am not considering charging as much as a commercial rate, but he wants to pay for the use of it. That's why i am asking - I expected i could find out what a commercial rate would be but I need to decide what feels right in our situation. And (I keep saying this to everyone) it was his idea and he wants to rent it from me! ("He started it!" lol)

Never said it was a unit on an estate! I thought he was going to work from home, he has bought the kiln and so on, didn't know he wanted more room until just now.

I think HMRC won't mind but the home insurance might. But i will find out, thanks for the thought.

muddlemand · 14 January 2020 at 5:48PM

Ozzuk wrote: »

A few other things to consider (you don't need to answer)...will your mortgage (if you have one) allow a commercial enterprise on the property, will the council allow a commercial enterprise, will your insurance have issues (liability insurance?), will you need to consider the safety risks - fire safety, evacuation etc, will you need to certify electrics, what about your tax position, will your neighbours complain (and have grounds to), do you want someone in your garden at all hours (especially in the summer), what about all the potential deliveries. Lots to think about!

I will look into all of these, mostly things I hadn't thought of, thank you. (Fire and evacuation will be fine - it's outside at the back and the only thing next to it is a field!)

muddlemand · 14 January 2020 at 5:50PM

Bossypants wrote: »

I assume the electricity supply and any other utilities would be in your name? If so I would ask him to cover his use, and maybe give a token fiver to charity in your name or something. If this becomes a serious, longterm arrangement, maybe you can revisit in a couple of years, but right now it sounds like you have a space which isn't worth much in its current form, and your friend is offering to revamp it at zero cost to you, in exchange for getting to use it for a while afterwards.

That's how i see it except that he's "Facebook buyer" first and friend second - and as for what the space is worth, see my longer replies above - but I see myself as the charity for the token amount to come to - see again my longer replies.

Anyway, doing a place up when I wasn't going to anyway is like giving me a free horse when I wasn't asking for one. Worth nothing to me.