Business Advice for the Mathematically Challenged
September 1, 2010 10:08 AM Subscribe
A colleague has asked me to share an office space with her. We are not in the same place financially in our careers. I'm trying to figure out what would be a fair deal for both of us, but I can't seem to get my head around the business logic. Can you guys help?
posted by Paris Elk to Work & Money (21 answers total)
My colleague has saved up enough capital to make the major investment required to rent a fairly large office space in a big city. The initial outlay -- including first month's rent, security deposit, taxes, realtor fees and other fees -- could run up to $30,000 depending on the space we find. I, on the other hand, am just starting out and have no savings to contribute to any of this, although I have enough clients to guarantee a monthly rent as I go along.
Here's where the math comes in. Colleague wants two rooms to work in, I need just one, and we'd share the communal space (waiting room, bathroom, kitchenette). I was thinking along the lines of a two-thirds/one-third split of the rent, but my future partner feels that since she's taking all the risk (the lease will be in her name and I will officially be subletting) and putting up all the initial money, the rent should be split 50/50.
Is this fair? If not, what would be? If yes, how do we handle utility bills, repairs and purchases for the space? If I pay half the rent for one-third the space, do I do that forever, or until I "pay back" half of the sum she fronted for the rental?