Renting out a restaurant — How?! What about the business license, insurance, and equipment??
I’ve been the owner of a casual sit down restaurant (owner of business and building) for sometime now. In this time, I’ve realized that the food industry is truly hectic and I need a change of pace. With real estate under turmoil, selling the business with the building has been quite a challenge. Thus, I am looking into renting the business out. However, I don’t exactly know what to do…
1.) What do I do about the business license? Can I rent it out too?
2.) What about business insurance? How is this passed on?
3.) How can I rent my equipment and cover myself if damage is done to it?
4.) Is renting it out a good idea, in your opinion? I am concerned that a renter may not care about the restaurant and taint its reputation. Then I’ll be left with a failing restaurant.
5.) Lastly, what is the best resource to go to for this? Is there a good book I should read?!
THANKS SO MUCH!!
When you rent out a business the lessee is responsible for all business licenses, insurance and all expenses. As far as covering yourself write a clause in the lease that you will be named as additional insured so that you get paid if the place burns down and also put in a clause that if business falls below a certain level you will repossess the business as is and that will certainly keep them on their toes. There are a hundred other ideas that I could give you but this is not the place for that, so consult a lawyer. Good luck.