free rent for service. good or bad?

[Diogenes]

I am finally moving my home based computer repair service from home appointments to my very own office. There is a building that rents office space at great prices. I went to look at what they had to offer. Well I got an offer in return. They want to give me a $200 a month office space in trade for doing computer repair for their other leasers. That is 35+ offices.

My problem is 35+ offices is a lot of possible problems everyday. Should I just tell them no way or offer to do it at a reasonable discount based on how complex the situation is and the amount of free time i have available. a $200 a month office isn't going to that big.

[paul2145r]

I would rent out the $200 office, and offer them another deal instead. If they advertise your services to all of their tennants, then you'll provide a big discount. They can even sell it as a 'perk' of renting in the building.

[BusinessAdviser]

The offer should be viewed with a simple cost-benefit analysis. If the benefit that you are to receive will equal or exceed the cost, then you should pursue it. However, if it does not, then you should not pursue it, as you will be better off by leasing the office for $200 per month and spending your time with paying clients.

A possible option might be something like taking it for $100 per month in return for offering all other tenants 20% off your service. There are quite a few advantages to something like this.

[Gr-Andy]

Yes give them a commission for reffering you to clients.

[paul2145r]

Commission would work out pretty well. You can mix and match- 10% off coupons for your services to all of the tenants of the building, as well as 10% commission to the owners of the locations. Raise your prices by 20%, and you're all set!

[BM_ag02]

I would like to offer a different point of view on your question; I have worked as a Landlord Rep for office and retail buildings. My gut tells me that a straight trade of your services for rent is not an equitable arrangement for you, but a great deal for the landlord. I think your hunch about the amount of service is correct, not to mention this puts you in a bad position if anyone is unhappy with your service and complains to the landlord. You have to remember that to the Landlord, giving away $200/m in rent is nothing compared to the benefit of advertising free onsite computer repair for new tenants. I think the previous suggestion to discount your services for the other tenants and use this as a tool to negotiate a lower lease rate. Whatever you decide to do; GET IT IN WRITING! Make sure you also read the lease thoroughly and understand exactly what it contains. This is key, because if something goes wrong and you can no longer afford the space, they are going to hold you to every letter of that lease.

[tori]

$200 is what you would charge for 3 hr. of service that is not even a full day!!!!!!!
you will make this with your first client. most computer shop charge $35-$75 an hr. and if you are not willing to charge at least $35 an hr. you will not be in bussiness for very long! The cost of having your store frount (after advertizing, fees, utilitis, rent, memberships and anything else you need to compete with other compitition will be aleast $1,300 and up.) Your first 3 months you may not spent much, if your buget is less. But after a while, you what to CHARGE enough to pay your bills and most importantly YOUR SeLF.
AS FOR BIG DISCOUNT don't do that 10%-25% is aceptible for bussinesses in your building. THIS is all from my 5 years of experince of owning 2 bussiness, That are still running.