How to Negotiate the Lease

When you've found a good place the next step is to make it yours. That means negotiating a lease, and that means coming up with a good deal on both price and terms. Polish up your negotiating skills if you have to -- there's a great book for negotiating called .

Long leases may seem like a good idea but you have to look to the future of your consignment shop. Not all stores make it, so what do you do if you sign a five-year lease that you only use four years of? A better idea is to have a yearly lease that allows for a certain percentage increase in rent each year, usually five percent. Even if your store does not fail, you could find a long-term lease hurts business. If your store is doing great business, it may need a bigger shop, so what do you do if you are in a long-term lease in a store that has limited space?

Get Professional Help

It may sting to hand a couple hundred dollars of your startup budget over, but do it anyway. Have a real estate lawyer review the lease and discuss what the terms means in plain language to you. Even at $200 an hour, a couple hours with a lawyer on the front end of your lease contract could save you thousands later. And a good attorney may put in some clauses that will benefit you greatly, particularly "use" clauses that might or might not let you serve coffee, for example.

The other professional you may want to talk to is a building inspector. This is especially important when your store is the only occupant of the building. If you can't get a current building inspection done, at least get a copy of the most recent building inspection (and it should be within the last three years). Also, because you are opening a store, not renting an apartment, you'll need to know if your new space complies with the Americans with Disabilities Act (ADA). If it doesn't, its time to call your real estate lawyer again so you're protected... or look for another place.

Be Clear About Signs and Competing Stores

Make sure your landlord understands and agrees in writing to whatever signs and hours of operation you want to have. That great purple dress for a sign idea might get squashed unless you ask about it up front.

If you are in a mall, seriously consider whether or not you want a "noncompete clause" in your lease. That would prevent the landlord from giving another store in the mall to another resale shop. Usually, blocking another similar store is a bad idea in resale -- you'll typically end up drawing more people if there are two of you. However, you may want to have a clause put in that blocks certain kind of neighbors -- like bars, homeless shelters, and adult bookstores, for example.

Know Your Utility Costs

Those amazing high ceilings and clerestory windows may make your heart sing, but they may also make your wallet moan come winter. You need to have documentation about utilities costs, especially if you live in an area where it gets cold during the winter. Find out what the usual eletric, water and heat costs are for the building in both summer and winter. Make sure there are no unexpected monthly costs, like parking or security monitoring or "maintenance fees". In extreme cases, the sales lull of February combined with really high heating costs may be enough to make you just give in and take a month off.

Document the Store's Condition

Just before you close the deal, you'll do a walk-through of your space with the landlord. If you've ever bought a house, this will be familiar. In a rental situation though, you could be held liable for any damage that's not documented during the walk-through. If you've ever lost a rental deposit to a sketchy landlord, you will know exactly what I'm talking about. It is not unwise to take pictures and write notes about the condition of the space during the walk-through. Even a couple of loose tiles in the bathroom could become and expensive thing to overlook if you and your landlord don't acknowledge them.

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Buying an Established Consignment Store

Best Days for Consignment Sales

Specializing Your Consignment Shop

Layaway Consignment Policies

Choosing Store Management Software

Resale, Consignment, Thrift and Second-Hand Stores

Locating a Retail Space and Negotiating the Lease

How Much Money Can You Make At Consignment?

A Sample Consignment Agreement

Setting up Your Consignment Shop

Consignment Agreement Policies

Preparing For Your Consignment Store Grand Opening

Creating an Unsold Items Policy

How To Start A Consignment Store

How to Properly Advertise Your Consignment Shop

How Much Money Do You Need To Start A Consignment Store?

Determining Hours of Operation For Your Consignment Store