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Terri Pour-Rastegar
Pro Member
  • Rental Property Investor
  • Charlotte NC Fort Mill SC Lake Wylie SC, SC
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174
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Daycare Center: How do I market it, price it, lease it, etc?

Terri Pour-Rastegar
Pro Member
  • Rental Property Investor
  • Charlotte NC Fort Mill SC Lake Wylie SC, SC
Posted Feb 2 2015, 13:22

Hello there.  So it looks like I just bought a daycare center in Charlotte NC.  Being strictly a residential investor, this foray into the commercial side of things is a little scary to me.  I could use any help I can get.

It's a unique property, as it is in a older, established neighborhood. However, I have verified (in writing) with zoning that it is grandfathered in as a daycare/childcare center, so I'm safe.

It is a legitimate daycare, and was run as such by the previous owners/tenants.  It has been modified such that it would not qualify as a habitable dwelling (i.e., residential use)--that's how nicely it's already set up.  County records indicate that it passed its last inspections/requirements for daycare use.  So that's good.

Here are my questions:

  • How do I price it?  My research tells me that I can rent out a daycare for $12/sq.ft., conservatively.  
  • How/where do I market this?  The realtor who brought me the deal wants to list it for lease for me, but this agent has no commercial property experience.  Neither do I!
  • What important items do I need in the lease?  Does anyone already have a solid lease they use for such a tenant?
  • Insurance:  My next call is to my insurance agency, but I'd like any input y'all may have on this issue.
  • How do I screen a daycare tenant?  Again, I'm used to renting houses to people.  What should I require of a tenant who will be running a daycare business?

Any help would be greatly appreciated.  Thanks!!!

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