What is "Key Money" and how much should it be?
By Qatarsquash •
Hi
I am looking to open a business and have found a suitable space. The current tenant has a business in the space but he is closing it down. He has sold all the equipment but still holds the lease.
I want the space but he has demanded key money. I am unfamiliar with this and don't really want to pay it as all i really want is the space.
He hasn't metioned an amount only said that "Key money in Qatar is between QAR50,000 and QAR5 Million, make me an offer"
Can anyone advise a guideline to calculating key money?
Thanks
key money is you have to pay so that the place that you want to lease will be given to you. its like a commission in order for them to give the place to you.
not only for you, every entrepreneur has facing the same problem.key money is depends upon the place where you choose the place for your business.
you can not avoid it, bcs if u r not ready to pay some one else will ready to pay and took the place, this is happening now.
bit in you case, just evaluate the area and location then go for bargain.
otherwise, find the real owner of this place, move and talk to him directly, sure he will also ask for the same, but less u can pay to him and finish the deal,
you wont believe, many reputed big shopping malls also taking key money to give space for your business.
it is FATE, you can not avoid it.....