Dojang Owners - Sublenting

[Tony49]

Hi Guys,

I have a dojang and have been approached by a few people in regards to subletting time out. Does anyone have advice on a fair way to determine what to charge base on the hours they use?

 

[harlan]

I just approached a TKD friend yesterday and we are discussing time/space for my needs in exchange for some kobudo training of her students. Barter, basically.

 

[miguksaram]

Your best bet is to charge them an hourly rate for the use of your facility. If you want to get anal about it break down the cost of your utilities to an hourly basis and then charge him accordingly. (Example: Electric/Heat/Water = $20.00...charge him $30.00).

One thing you will need to do is to make sure the other instructor has a waiver the students sign which also names you and your school. The instructor should have their own insurance as well. Lastly, make sure they understand that they and their students must respect the way things are done at your school and the school itself.

 

[Tony49]

Your best bet is to charge them an hourly rate for the use of your facility. If you want to get anal about it break down the cost of your utilities to an hourly basis and then charge him accordingly. (Example: Electric/Heat/Water = $20.00...charge him $30.00).

One thing you will need to do is to make sure the other instructor has a waiver the students sign which also names you and your school. The instructor should have their own insurance as well. Lastly, make sure they understand that they and their students must respect the way things are done at your school and the school itself.

I definitely got the insurance part covered as well as a lease agreement. I am just trying to find a better way to charge the hourly rate. I know my total rent/utilities but I am not sure how many hours to divide that by to get my hourly rate. Do I use the hours I am open or do I include his hours as well?

 

[miguksaram]

I definitely got the insurance part covered as well as a lease agreement. I just try to find a better way to charge the hourly rate. I know my total rent/utilities but I am not sure how many hours to divide that by to get my hourly rate. Do I use the hours I am open or do I include his hours as well?

I would base it off of the hours you are opened and then charge him accordingly. So if you opened 8 hours a day and your hourly rate came to $20.00 an hour for utilities then charge him that rate. Regardless if he is only opened 2 hours or 10 hours. That would be the easiest way to set the rate. Trying to figure out the rate by adding his hours to your hours then dividing utilities based on percentage used..blah..blah..blah.. is just a pain in the butt.

 

[jks9199]

I definitely got the insurance part covered as well as a lease agreement. I am just trying to find a better way to charge the hourly rate. I know my total rent/utilities but I am not sure how many hours to divide that by to get my hourly rate. Do I use the hours I am open or do I include his hours as well?

He'll be adding time to usage -- so I'd use your current hours. Say you're open between open mat and scheduled classes for a total of 30 hours out of the week, or 120 a month. Your average hourly operating costs (rent, utilities, other related costs) work out to $600 a month utilities, plus another $600 in rent. (I'm making up easy numbers!) Divide that total of $1200 by 120, and your hourly operating costs are $100. Charge him 10% over as service fee or whatever you want to call it, and you get $110.

You also want to check with your own insurance; they may need an additional rider or documented proof of his separate insurance, because you still have a liability exposure while he's using the facility.

 

[Tony49]

He'll be adding time to usage -- so I'd use your current hours. Say you're open between open mat and scheduled classes for a total of 30 hours out of the week, or 120 a month. Your average hourly operating costs (rent, utilities, other related costs) work out to $600 a month utilities, plus another $600 in rent. (I'm making up easy numbers!) Divide that total of $1200 by 120, and your hourly operating costs are $100. Charge him 10% over as service fee or whatever you want to call it, and you get $110.

You also want to check with your own insurance; they may need an additional rider or documented proof of his separate insurance, because you still have a liability exposure while he's using the facility.

Yeah, I think this is the way to go. By the way 1200/120 is 10 not 100.

 

[jks9199]

Yeah, I think this is the way to go. By the way 1200/120 is 10 not 100.

And now you know why I'm not a math teacher! LOL The principle was clearer than the math, I hope!

(Though you might want to use my math...)

 

[Brian R. VanCise]

Insurance, proper understanding of how you wish them to utilize your space and of course a fair and equitable hourly or monthly rate is what you need to work out. Make sure you have everything in writing, etc.

 

[jks9199]

Insurance, proper understanding of how you wish them to utilize your space and of course a fair and equitable hourly or monthly rate is what you need to work out. Make sure you have everything in writing, etc.

On the note of "how they utilize the space"...

Who'll be responsible for clean up? Bathrooms & locker rooms (if you have them)? Will they be permitted to wear shoes or must they train barefoot? and I'm sure there's more along those lines -- like posters/diagrams, marking on the floor...

 

[Tony49]

Thanks everyone, I pretty much got the insurance and usage part figured out. I found a lease online and modified it to fit my needs. My main problem was the Hourly rate. I didn't want to over/under charge. Right now the space is 1300sqft training area (2000sqft total). I have Carpet floor - Punching bags - Punch/Kick Shields and one bathroom. Right now it is coming out to about $37 round up to $40 an hour which to me seems a little high. I am currently only open 20hrs a week.