Are you getting ready to rent a house? If so, have you thought about what you should look for? Do you know what questions you should ask your potentially new landlord? And, finally, how exactly should you rent that house? These are all good questions that we are going to answer in this article.

What is the most important thing that you should look for when renting a house? It’s a simple answer and you have heard it before – location, location, location. Not only is this important when you are buying a home, but also when you are renting.

If you live in one location and you have to travel a long distance to get to work, you probably won’t be happy. Or, if you have children and they go to public schools, then you want to be sure that you rent a house that is in a good school district. Or, perhaps on your leisure time you like to spend your time fishing. Then, being close to a good watering-hole is important. Location, location, location,…it’s so important!

Another important factor to consider is cost. Rent and utilities should not exceed 36% of your total income. Renting a nice home is important, but don’t let it financially ruin you.

After you have found a house that is for rent in a suitable location and at a cost that you can afford, there are some important questions that you need to ask your potential landlord. Questions such as:

1. How long does the landlord intend to rent the house?

2. How long will the current rate of rent be guaranteed for?

3. Can they estimate how much the next increase in rent will be?

4. Are pets permitted? If so, what type of pets and are there any size or weight limitations?

5. Who is responsible for maintaining the landscape?

6. If painting is required, will the landlord provide the labor and materials?

7. Can the landlord provide an estimate on electrical, gas, sewage, and garbage costs?

8. Can the landlord provide you any details about neighbors that live in the area?

9. Is a security deposit required and, if so, how much?

10. Does your initial payment include first and last month’s rent or just the first month’s rent?

These are important questions to ask your future landlord. Their answers will help you to determine your initial investment and your future costs. These answers will also help you decide how cooperative your future landlord may be. Don’t hesitate to ask these questions.

Renting a house is quite a process. Once you have found a house that meets all of your expectations, then you need to sign a contract with your new landlord. But, before doing that, the landlord may ask you to fill out an application. Don’t be surprised if the landlord asks you to do this… the information you provide the landlord will help ensure him that you are a suitable renter.

The landlord must provide you a contract to sign. If he does not have one, he can buy one from Office Depot or he can secure one from his real estate agent. It’s the landlords responsibility to provide you that written contract and don’t rent a house without that contract.

Once the landlord has provided you a contract to sign, it’s in your best interest to have someone to thoroughly review that contract before you sign it. This person might be a real estate attorney or a close family member that has experience in contracts. Make sure that every word of the contract is reviewed.

Renting a house does not sound complicated, and it’s really not. Just be sure that you cover the above fundamentals and you should be safe. Good luck on finding that house that you are looking to rent!

When you have several people to take part in the same event, it is a great idea to keep them all together! With a double decker bus hire, you are able to do that. It is going to enhance the fun and you won’t have the use of several different vehicles. Your guests will appreciate this thoughtful idea. It is a fun way to spend time with others and to see the sites.

The double decker bus hire means you only have to pay for one bus rather than two in order to account for all of your expected passengers. The cost of this upgraded model is going to be less expensive than two separate buses. The higher level view also gets great reviews so you can’t go wrong with it. At least check it out and see what it is all about!

Fresh Idea

Your guests are going to love this fresh idea! All they have to do is show up at the assigned time at the assigned location. Then they can be part of the fun. You can decide to make it a one pick up and one stop travel event. You can also set up more than one pick up and drop off location. This will influence cost but it can be more convenient for your guests.

You can also talk to the provider about hop on and off options. There may be events along the selected route that allow people to get off and look at something specific. The hard part with this is people have to pay close attention or they won’t be back to the bus when it is time for it to continue on. That can result in them being left behind or putting the schedule behind for all.

Often, you will find more people participate in a given event when transportation such as a double decker bus hire is provided for them. It allows them to relax and to enjoy what is going on around them. They don’t have to worry about their own transportation set up or trying to figure out where to go.

When there is sightseeing involved, it is hard to enjoy your surroundings when you also have to focus on driving. Being able to take it all in and even take photos as you move along is something they will appreciate.

Gather Information

The best way to get started with a double decker bus hire is to gather information. Decide when you will need the services and the route you need them to cover. Keep in mind there are certain routes that don’t allow buses. The provider can go over all of that will you and find a route that is approved for the bus that also fulfils your specific needs.

The number of people you will have on the bus also needs to be discussed. While a double decker bus hire can hold quite a few people, there are going to be limits. They can’t be too crowed for it to be safe. Ideally, there will be a seat for each person on the bus. The cost is going to depend on where you hire from and how long you plan to use it.

This all depends on your agenda and the amount of money you would like to spend on a double decker bus hire. It is a good idea to get your options and then to closely evaluate them. Doing so will allow you to get the best overall deal. Then you can just focus on the fun event that is ahead for all of you to enjoy!

I recently read an article about a female Brigham Young University student who was earning college money by renting out puppies. Yes, I did say "renting out puppies." She originally directed her business to fellow college students who could not bring their own pets on campus. She has expanded her business and is now targeting very busy parents who want to give their children the opportunity to play with an adorable puppy without having to deal with the full responsibility of raising a dog.

On the surface, this seems like a wonderful idea. She charges $ 15 to rent a puppy for one hour or $ 25 for two hours, with the possibility of longer arrangements. She delivers the puppy to your door. The children can play with the dog for a short time. The puppy is then returned before it ever wees on the couch. What could be better? No Fuss, No Muss!

Renting puppies, however is WRONG on so many levels.

Four Reasons That Rent-a-Puppy Is An Awful Idea:

(1) We don't know where she is getting the puppies.

She claims that she gets the puppies from local people who are unable to care for them. This might seem reasonable once, but not month after month or "on call." I have now read three different articles about this student and in each article she gives a different explanation of how she gets her puppies. Why the secrecy and lies?

There is one and only one way to guarantee a continual source of puppies; and that is working with puppy mills either directly or indirectly through a broker.

Any place or person who has puppies all year and can even make arrangements for a certain type of dog, as this college student claims, is using puppy mill dogs.

To support puppy mills is just WRONG!

(2) These puppies are too young:

This coed claims her puppies are between 8 and 12 weeks of age, and that she adopts them out at age 12 weeks. A responsible breeder will not let their puppies go until they are 12 weeks. An 8 to 10 week old puppy has not learned the socialization or basic training the mother dog provides. This time period is critical for the emotional development / temperament of the dog. Puppies need a stable environment so they can learn the rules of life. How is a puppy supposed to learn where to "do his business" when the location changes constantly?

Some people will argue that the puppies are getting great socialization from being with many people. What the puppy is really learning is that humans cannot be trusted to provide consistency in their life. Each time they are rented, the family acts as if they love the puppy; but then they disappear. The puppy quickly learns that humans will abandon them.

(3) The health of these puppies is jeopardized:

This student admits she does not give her puppies the appropriate shots until they are adopted. She also states that she generally has several puppies at one time. One sick puppy will infect the others. Renting one of these exposed puppies will spread the illness.

If her puppies are from puppy mills, then the likelihood of illness is very high. Imagine renting an adorable puppy to see if your older dog would accept a puppy, and then discovering the puppy is ill. The puppy might die in your home, and / or spread the illness to your older dog. How do you explain THAT to your children?

The # 1 complaint from people who buy puppies from pet stores is illness in the puppy. The puppy seems healthy at the store, but within a few days, the puppy gets sick and dies.

(4) These puppies are not spayed / neutered:

This may not seem like a concern, but if she doesn't have them neutered as soon as possible, she may be contributing to the homeless dog problem. This coed is also putting the expense of surgery on the adopter. Her adoption fee is approximately the same as charged by rescues, but rescues and shelters always spay / neuter before you can take the dog home. It is unethical to be adopting out dogs that are still intact. Reputable breeders will do this ONLY if the puppy is show quality.

So, would YOU rent a puppy? I hope your answer is a definite NO. The fun your child might have is not worth the harm to the puppy; and NO ONE should support puppy mills! NEVER! NEVER! NEVER!

There are 3 major drugstore chains in the US: Walgreens, CVS, and Rite Aid. Below are some key statistics about the 3 major drugstore chains as of 2012:

1. Walgreens ranks first with market cap of $28.51 Billion, $72.2 Billion in 2011 total revenue ($45.1B from prescription revenues), and an S&P rating of A. According to Walgreens, 75% of the US population lives within 3 miles from its stores. In April 2010, it acquired 258 Duane Reade drug stores in New York Metropolitan area which brings a total of 7841 drug stores Walgreens operates as of February 2012, including 137 hospital on-site pharmacies.

2. CVS ranks second with market cap of $56.56 Billion, $107.1 Billion in revenue ($40.5 Billion from CVS prescription revenues and $16.1B from its Caremark prescription mail order revenue), and an S&P rating of BBB+. As of December 31, 2011, CVS operates 7404 drug stores.

3. Rite Aid ranks third (fourth, behind Walmart in terms of prescription revenues) with market cap of $1.49 Billion, $26.1 Billion in revenue ($17.1B from prescription revenues), operates 4714 drug stores as of February 2011 and has an S&P rating of B-.

Investors purchase properties occupied by these drugstore chains for the following reasons:

1. The drugstore business is very recession-insensitive. People need medicine when they are sick, regardless of the state of the economy. Both rich and poor people in the US have access to medicine. Some even argue that low-income people use more medicine due to free or low-cost drugs offered by government-assisted programs. So the tenants should do well during tough time and have money to pay rent to landlords.

2. The drugstore business has a good prospect in the US:

· People are living longer and need more medicine to sustain longevity, e.g. Actonel for osteoporosis, Aricept for Alzheimer’s symptoms. Older people tend to use more medicine than younger ones as they often have more medical problems. As the 78 million baby boomers are getting closer to retiring age starting from 2008, the drugstore chains anticipate the demand for medicine to increase in next 20 years.

· The drug market continues to expand as the US population continues to grow. More and more Americans suffer from various diseases. The number of Americans suffers from seasonal allergies doubled in the last 15 years to 37 million people per Fortune magazine. They spent $5.4 Billion in 2009 for allergy drugs. As their waist lines balloon (75% of Americans are forecasted to be either overweight or obese by 2020), more Americans are diagnosed with diabetes, along with high cholesterol at younger and younger ages. In addition, doctors also recommend treating various diseases sooner than later due to better understanding about the diseases. For example, doctors now prescribe antiretroviral drugs for patients soon after infected with HIV virus instead of waiting for the infection to become AIDS. More doctors combine insulin with oral medicines to treat type-2 Diabetes instead of just oral medicines alone. All these factors increase the size of the drug market.

· Advance in genetic engineering has introduced various new genetic DNA testing kits which allow the genetic diagnosis of vulnerabilities to inherited diseases and disorders. Genetic testing is currently the highest growth segment in the diagnostics industry. Some of these genetic tests will probably transform into direct-to-consumer testing kits available in drug stores in the near future.Upon FDA approval, these new products will potentially bring in additional revenue for drug stores.

· Using a new method of tailoring molecules called structure-based design; drug companies come up with new medicines that they might not have discovered otherwise, e.g. Xalkori by Pfizer to treat lung cancer.

· The passage of Health Care Reform Bill on March 23, 2010 provides insurance coverage to an estimated 33 million more American. This is a great present to the drugstore industry.

· There are new drugs to treat previously untreatable illnesses, and new diseases, e.g. Viagra for men’s unhappiness, Avastin for colon cancer, Herceptin for breast cancer,. The new medicines are very expensive, e.g. a year’s supply of Avastin costs about $55,000. Eli Lilly has sold about $4.8 billion of Zyprexa in 2007 for schizophrenia and yet most people have never heard of this medicine.

· There are existing drugs now approved to treat new illnesses and thus increase their sales revenue. For example, Lyrica was originally intended to treat pain caused by nerve damagein people with diabetes. It is now approved by FDA to treat Fibromyalgia which affects 5.8 million Americans per WebMD.

· Big advances in genetics, biology and stem cells research are expected to produce a new class of drugs to treat diabetes, Parkinson’s and various rare genetic disorders. For example the new drug Ilaris from Novartis targets genetic causes of an inherited disorder that there are only 7000 known cases worldwide. However, Novartis hopes to gradually broaden its drugs to a blockbuster drug to more common disorders caused by similar genetics.

· Technology and modern life introduce and require new products, e.g. pregnancy test kits, Lamisil for stronger clearer toe nails, Latisse for longer & thicker eyelashes, Propecia for male hair loss, Premarin for menopausal symptoms, diabetic monitors, electronic toothbrushes, contact lenses, lenses cleaners, diet pills, vitamins, birth-control pills, IUDs, nutrition supplements and Cholesterol-lowering pills (Americans spent nearly $26B in 2006 on Cholesterol medications alone per IMS Health, a Connecticut-based consulting company that monitors pharmaceutical sales.)

· Before the customers can get to the medicine aisles or pharmacy counters, they have to pass by chocolates, sodas, digital cameras, watches, toys, dolls, beers and wines, cosmetics, video games, flowers, fragrances, and greeting cards. Drug stores hope you use the one-hour photos services there. The stores also carry seasonal items, e.g. Halloween costumes, and “As Seen on TV” merchandise, e.g. Shamwow. As a result, customers buy more than their prescriptions and medicine in these drugstores. CVS reported that non-pharmacy sales represented 30% of the company’s total sales in January of 2007. The figure for Walgreens is 34% and 37% for Rite Aid. Many pharmacy locations are in effect convenience stores especially ones that are in residential or rural areas. And so Walgreens hopes that customers also pick up WD-40, and screwdrivers at its stores instead of at Home Depot; Thai Jasmine rice, and fish sauce to avoid a trip to Safeway or Kroger Supermarkets. During the recession, sales of these non-drug items are down as customers buy what they need and not what they want. Walgreens tries to reduce the number of items by 4000. It also introduces its own private label which has higher profit margins.

· There are more and more generic medications on the market as a number of enormously popular brand-name blockbusters lose their 20-year long patents, e.g. Lipitor (best selling drug in the world to lower cholesterol) in 2010, Viagra (you know what it’s for) in 2012. Drugstores prefer to sell generic drugs to customers due to higher profit margins than the brand-name medications.

· Many people are addicted to pain killers, e.g. Hydrocodone/Oxycodone. Per the DEA in 2012, there are 1.5 million American addicted to cocaine but 7 million addicted to prescription drugs.

· This author estimates that at least 10% of the dispensed prescription drugs are not used at all and sit idle in the medicine cabinets. They are eventually expired and thrown away.

3. These companies sign very long-term NNN leases, guaranteed by their corporate assets. This makes the investment in the underlying property fairly low risk, especially for Walgreens with a S&P “A” rating. In fact, these properties are sometimes referred to as investment-grade properties. Once the drugstore chains sign the lease, they pay the rent promptly and timely. This author is not aware of any properties leased by one of these drugstore chains in which the tenants failed to pay rents. Even when the stores are closed due to weak sales (Walgreens closed 119 stores in 2007), these companies may sublease the properties to other companies, e.g. Advance Auto Parts and continue to pay rents on the master leases.

· A typical Walgreens lease consists of 20-25 year primary term plus 8-10 five-year options. During primary term and options, there will be no rent increases in most of the leases. This is the main disadvantage of investing in Walgreens drugstores.

· A typical CVS lease consists of 20-25 year primary term plus 4-5 five-year options. The rent is normally flat during the primary term and then there is a 2.5%-10% rent increase in each 5-year option.

· A typical Rite Aid lease consists of 20-25 year primary term plus 4-8 five-year options. The lease often has a rent increase every 5-10 years.

Investment Risks

Although the pharmacy business in general is recession-insensitive, there are risks involved in your investment:

1) The main downside about investing in pharmacies is there is little or no rent bump for a long time, e.g. 20-50 years, especially for Walgreens. So the rent is effectively reduced after inflation is factored in. This is one of the main reasons these properties do not appeal to younger investors, especially when the cap rate is low.

2) The 3 drugstore chains now have a new formidable competitor, Walmart. Walmart sells prescription drugs in more than 4000 Walmart, Sam’s Club and Neighborhood Market stores in 49 states. As of 2012, Walmart is the third largest drug retailer with $17.4B in prescription sales, just ahead of Rite Aid with $17.1B in prescription sales. The retail giant is known for launching in 2006 a highly-publicized $4 generic prescription drug program which now sells 350 generic medications for a 30-day supply. The actual number of medications is less as the medications with different strengths are counted as different medications. For example, Metformin 500 mg, 850 mg, and 1000 mg are counted as 3 medications. Walmart probably makes very little profits on these medications if any. However, the marketing campaign–created by Bill Simon, the President and CEO of Walmart US, generates a lot of publicity for Walmart. Walmart hopes to draw customers to its stores with other prescriptions where it has higher profit margins. In an unscientific survey with just one brand-name prescription of Lyrica, this author finds the lowest price at Costco, the highest price at Walgreens and Walmart at the middle. Other drug chains try to counter Walmart in different ways. Target now offers the same 350 generic medications for $4 for a 30-day supply. Walgreens has a Prescription drugs club with membership fee which offers 1400 generic medications for as little as $1/week. CVS says it will match any offers from its competitors.

3) Chief Business Correspondent Rick Newman from US World & News Report predicted that Rite Aid might not survive in 2009. Rite Aid is still around in 2012. The prediction seems to go away in 2012 as Rite Aid as it was able to refinance the long terms debts and sales revenue has increased.

4) Drugs are also sold in thousands of supermarkets, Target stores, and Costco warehouses. However, there are no drive-through windows at these stores or Walmart to conveniently drop off the prescriptions and pick up medicines. Customers will not be able to pick up their prescriptions during lunch hour or after 7PM at Target stores or supermarkets. They need to have membership to buy medicines at Costco. Others may not fill their prescriptions at Walmart because they don’t want to mingle with typical Walmart customers who are in lower income brackets. And some baby boomers don’t want their prescriptions filled at Target or Walmart because there are no comfortable chairs for them to sit down and wait for their medicines.

5) Drugs retail business to some degree is controlled by the Pharmacy Benefits Managers (PBMs). Customers normally get prescription coverage from their health insurance companies, e.g. Blue Cross. These PBM manage prescription benefits on behalf of the insurance companies. In 2012 Walgreens lost a contract valued at over $5 Billion with Express Scripts, a major PBM. Walgreen revenue was immediately fallen in the first quarter of 2012 as Express Scripts customers cannot fill their prescriptions at Walgreens. The PBMs are also in the drugs retail business via mail orders which do not require leasing expensive retail spaces. The prescription mail orders currently capture over 20% market share of the total prescription revenue. Should customers change their prescription purchase habits to mail orders (there is no such evidence in 2012), it could have negative impact to the business of drugstore chains.

6) Many leases in areas with hurricanes and tornadoes are NNN leases with the exception of roof and structure. So if the roof is damaged, you will have to pay for the expenses.

7) The tenant may move to a new location down the road or across the street when the lease expires. This risk is high when the property is located in small town where there is low barrier for entry, i.e. lots of vacant & developable land.

8) The tenant may ask for rent concession to improve its bottom line during tough times. The possibility is higher if the tenant is Rite Aid and if the store has low sales revenue and/or higher than market rent.

9) More Americans are walking away from their prescriptions, especially the most expensive brand-name medicines. This may have negative impact on the sales revenue and profits of drug stores and consequently may cause drug store closures. According to Wolters Kluwer Pharma Solution, a health-care data company, nearly 1 in 10 new prescriptions for brand-name drugs were abandoned by people with commercial health plans in 2010. This is up 88% compared to 4 years ago just before the recession began. This trend is driven in part by higher and higher co-pays for brand name drugs as employers are shifting more insurance costs to their employees.

Among 3 drugstore chains, Walgreens and CVS pharmacies in general have the best locations-at major intersections while Rite Aid has less than premium locations. Walgreens tends to hire only the top graduates from pharmacy schools while Rite Aid settles with bottom graduates to save costs. When possible, all drugstore chains try to fill the prescriptions with generic medications which have higher profit margins.

1) Walgreens: the company was founded in 1901 by Charles Walgreen, Sr. in Chicago. While the company has existed for more than 100 years, most stores are only 5-10 years old. This is the best managed company among the three drugstore chains and also among the most admired public companies in the US. The company has been run by executives with proven track records and hires the top graduates from universities. Due to its superior financial strength–S&P A rating– and premium irreplaceable locations, properties with leases from Walgreens get the highest price per square foot and/or the lowest cap rate among the 3 drugstore chains. In addition, Walgreens gets flat rent or very low rent increases for 20 to 60 years. The cap rate is often in the low 5% to 6.5% range in 2012. Investors who buy Walgreens tend to be more mature, i.e. closer to retirement age. They are looking for a safe investment where it’s more important to get the rent check than to get appreciation. They often compare the returns on their Walgreens investment with the lower returns from US treasury bonds or Certificate of Deposits from banks. Walgreens opened many new stores in 2008 and 2009 and thus you see many new Walgreens stores for sale. It will slow down this expansion in 2010 and beyond and focus on renovation of existing stores instead.

2) CVS Pharmacy: CVS Corporation was founded in 1963 in Lowell, MA by Stanley Goldstein, Sidney Goldstein, and Ralph Hoagland. The name CVS stands for “Consumer Value Stores”. As of 2009, CVS has about 6300 stores in the US, mostly through acquisitions. In 2004, CVS bought 1,200 Eckerd Drugstores mostly in Texas and Florida. In 2006, CVS bought 700 Savon and Osco drugstores mostly in Southern California. And in 2008 CVS acquired 521 Longs Drugs stores in California, Hawaii, Nevada and Arizona for $2.9B dollars. The acquisition of Long Drugs appears to be a good one as it CVS did not have any stores in Northern CA and Arizona. Besides, the price also included real estate. It is also bought Caremark, one of the largest PBMs and changed the corporation name to CVS Caremark. When CVS bought 1,200 Eckerd stores, it formed a single-entity LLC (Limited Liability Company) to own each Eckerd store. Each LLC signs the lease with the property owner. In the event of a default, the owner can only legally go after the assets of the LLC and not from any other CVS-owned assets. Although the owner loses the guaranty security from CVS corporate assets, this author is not aware of any incident where CVS closes a store and does not pay rent.

3) Rite-Aid: Rite Aid was founded by Alex Grass (he just passed away on Aug 27, 2009 at the age of 82) and opened its first store in 1962 as “Thrif D Discount Center” in Scranton, Pennsylvania. It officially incorporated as Rite Aid Corporation and went public in 1968. By the time Alex Grassstepped down as the company’s chairman and chief executive officer in 1995, Rite Aid was the nation’s largest drugstore chain in terms of total stores and No. 2 in terms of revenue. His son, Martin Grass, took over but was ousted in 1999 for overstatement of Rite Aid’s earnings in the late 1990s. Rite Aid is now the weakest financially among the 3 drugstore chains. In 2007, Rite-Aid acquired about 1,850 Brooks and Eckerd drugstores, mostly along the East coast to catch up with Walgreens and CVS. In the process, it added a huge long term debt and is the most leveraged drugstore chain based on its market value. The integration of Brooks and Eckerd did not seem to go well. Revenue from some of these stores went down as much as 20% after they change the sign to Rite Aid. In 2009, Rite-Aid had over 4900 stores and over $26 Billion in revenues. The figures went down in 2010 to 4780 stores and $25.53 billion in revenue. On January 21, 2009 Moody’s Investor Services downgraded Rite Aid from “Caa1” to “Caa2”, eight notches below investment grade. Both ratings are “junk” which indicate very high credit risk. Rite Aid contacted a number of its landlords in 2009 trying to get rent concession to improve the bottom line. In June 2009, Rite Aid successfully completed refinancing $1.9 Billion of its debts. In 2012, Rite Aid benefits from Walgreens contract problem with Express Scripts. Same store sales increased 2.2%, 3.2%, and 3.6% for January, February and March of 2012, respectively. Rite Aid is still losing money in fiscal year 2012 which ended in March 3, 2012. However, it is losing less, $0.43 per share in 2012 versus $0.64 per share in fiscal year 2011. The company expects better outlook in fiscal year 2013.

Things to consider when invested in a pharmacy

If you are interested in investing in a property leased by drugstore chains, here are a few things to consider:

1. If you want a low risk investment, go with Walgreens. In stable or growing areas, the degree of safety is the same whether the property is in California where you get a 5.5% cap or Texas where you may get a 6.5% cap. So, there is no significant advantage to invest in properties in California as the property value is based primarily on the cap rate. In 2012, the offered cap rate for Walgreens seems to come down from 7.5%-8.4% in 2009 to 5.5%-6.5% for new stores.

2. If you are willing to take more risk, then go with Rite-Aid. Some properties outside of California may offer up to 9% cap rate in 2012. However, among the 3 drug chains, Rite Aid has 10.5% chance of going under in 2010. Should it declare bankruptcy, Rite Aid has the option to pick and choose which locations to keep open and which locations to terminate the lease. To minimize the risk that the store is shuttered, choose a location with strong sales and low rent to revenue ratio.

3. Financing should be an important consideration. While the cap rate is lower for Walgreens than Rite Aid, you will be able to get the best rates and terms for Walgreens.

4. If you are not a conservative investor or risk taker, you may want to consider a CVS pharmacy. It has BBB+ S&P credit rating. Its cap rate is higher than Walgreens but lower than Rite Aid. Some leases may offer better rent bumps. On the other hand, some CVS leases, especially for properties in hurricane areas, e.g. Florida are not truly NNN leases where landlords are responsible for the roof and structure. So make sure you adjust the cap rate down accordingly. Some of the CVS locations have onsite Minuteclinic staffed by registered nurses. Since this clinic idea was introduced recently, it’s not clear having a clinic inside CVS is a plus or minus to the bottom line of the store.

5. All 3 drugstore chains have similar requirements. They all want highly visible, standalone, rectangular property around 10,000 – 14,500 SF on a 1.5 – 2 acre lot, preferably at a corner with about 75 – 80 parking spaces in a growing and high traffic location. They all require the property to have a drive-through. Hence, you should avoid purchasing an inline property, i.e. not standalone and property with no drive-through windows. There is a chance that these drugstores may not want to renew the lease unless the property is located in a densely-populated area with no vacant land nearby. In addition, if you acquire a property that does not meet the new requirements, for example a drive-through, you may have a problem getting financing as lenders are aware of these requirements.

6. If the pharmacy is opened 24 hours a day, it is in a better location. Drugstore chains do not open the store 24 hours day unless the location draws customers.

7. Many properties may have a percentage lease, i.e. the landlord can get additional rent when the store’s annual revenue exceeds a certain figure, e.g. $5M. However, the revenue used to compute percentage rent often excludes a page-long list of items, e.g. wine and sodas, tobacco products, items sold after 10 PM, drugs paid by governmental programs. The excluded sales revenue could account for as much as 70% of store’s gross revenue. As a result, this author has seen only 2 stores in which the landlord is able to collect additional percentage rent. The store with a percentage rent is required to report its annual sales to the landlord. As an investors, you want to invest in a store with strong gross sales, e.g. over $500 per square foot a year. In addition, you also want to check the rent to revenue ratio. If the figure is in the 2-4% range, the store is likely to be very profitable so the chance the store is shut down is low.

8. It does not matter how good the tenants are, avoid investing in declining, e.g. Detroit and/or low-income areas or small towns with less than 30,000 residents within 5 miles ring. In a small town, it may be the only drug store in town and captures most of the market share. However, if a competitor opens a new location in the area, revenue may be severely affected. In addition, the tenant can always moves to a new location down the road when the lease expires since there is low barrier to entry in a small town. These properties are easy to buy now and hard to sell later. When the credit market is tight, you may have problems finding a lender to finance these properties.

9. Many properties have an existing loan that the buyer must assume. If you have a 1031 exchange, think twice about buying this property. You should clearly understand loan assumption requirements of the lenders before moving forward. Should you fail to assume the existing loan (assuming an existing loan is a lot more difficult than getting a new loan), you may run out of time for a 1031 exchange and may be liable to pay capital gain.

10. With few exceptions, drugstore chains do not own the stores they occupy for several reasons. Here are just a couple of them:

– They know the pharmacy business but don’t know real estate. Stock investors also don’t want Walgreens to become a real estate investment company.

– Owning the real estate will require them to carry lots of long term debts which is not a brilliant idea for a publicly-traded company.

11. About 10% of the drugstore properties for sale and typically CVS pharmacies require very small amount of equity to acquire, e.g. 10% of the purchase price. However, you are required to assume an existing fully-amortized loan with zero cash flow. That is, all of the rent paid by the tenant must be used to pay down the loan. The cap rate may be in the 7-9% range, and the interest rate on the loan could be attractive in the 5.5% to 6% range. Hence, the investor pays off the loan in 10 to 20 years. However, you have no positive cash flow. This requires you to come up with outside cash to pay income tax on the rental profits (the difference between the rent and mortgage interest). The longer you own the property, the more outside cash you will need to pay income taxes as the mortgage interest will get less and less toward the end. So who would buy this kind of property?

– The investors who have substantial losses from other investment properties. By acquiring this zero cash flow property, they may offset the income from the drugstore tenant against the losses from other investment properties. For example, a property has $105,000 of rental profits a year, and the investor also has losses of $100,000 from other properties. As a result, the combined taxable profits are only $5,000.

– The uninformed investors who fail to consider that they have to raise additional cash to pay income taxes.

Out of the Box Thinking

If you put too much weight on the S&P rating of the tenants, you may end up either taking a lot of risks or passing up good opportunities.

1. A Good location should be the key in your decision on which drug store to invest in. It’s often said a lousy business should do well at a great location while the best tenant will fail at a lousy location. A Walgreens store that is closed down later on (yes, Walgreens closed 119 stores in 2007) is still a bad investment even though Walgreens continues paying rent on time. So you don’t want to blindly invest in a drug store simply because it has a Walgreens sign on the building.
2. No company is crazy enough to close a profitable location. It does not take rocket science to understand that a financially-weak company like Rite Aid will make every effort to keep a profitable location open. On the other hand, a financially-strong Walgreens will need justifications to keep an unprofitable location open. So how do you determine if a drug store location is profitable or not if the tenant is not required to disclose its profit & loss statement? The answer is you cannot. However, you can make an educated guess based on the store’s annual gross revenue which is often reported to the landlord as required by the percentage clause in the lease. With the gross revenue, you can determine the rent to income ratio. The lower the ratio, the more likely the store is profitable. For example, if the annual base rent is $250,000 while the store’s gross revenue is $5M then the rent to income ratio is 5%. As a rule of thumb, it’s hard to make a profit if this ratio is more than 8%. So if you see a Rite Aid with 3% rent to income ratio then you know it’s likely a very profitable location. In the event Rite Aid declares bankruptcy, it will keep this location open and continue paying rent. If you see a Rite Aid drug store with 3% rent to income ratio offering 10% cap, chances are it’s a low risk investment with good returns and the tenant will most likely to renew the lease. The weakness of corporate guaranty from Rite Aid is probably not as critical and the risk of having Rite Aid as a tenant is not really that significant.
3. Drug stores with new 25 years leases tend to sell at lower cap, e.g. 6-7% cap on new stores versus 8.0-8.5% cap on established locations with 5-10 years remaining on the lease. This is because investors are afraid that the tenants may not renew the leases. Unfortunately, lenders also have the same fear! As a result, many lenders will not finance drug stores with 2-3 years left on the leases. The fact that drugstores with new leases have a premium on the price means they have potential of 20% depreciation (buying new at 6% cap and selling at 7.5% cap when the leases have 8 year left). Some investors will not consider investing in drug stores with 5-10 years left on the lease. They might simply ignore the fact that the established stores may be at irreplaceable locations with very strong sales. Tenants simply have no other choices other than renewing the lease.

For a more cozy and warm ambiance while on a vacation, try to rent vacation homes instead of lodging in hotels. Whether you will be traveling with the whole family or traveling alone, whether you will be traveling for pleasure or for business, vacation homes can make you feel more comfortable and at home. If you are a newbie in renting vacation homes, here are some tips that you might want to follow.

Plan as early as possible.

Once you have decided where to go and what to do, jumpstart your search for a vacation home to rent. Avoid last minute reservations since they will cost you more and may strain your budget. If possible, plan and make a reservation as early as six months from your vacation date.

Look around and ask for referrals.

In these days, you can rely on the internet to look for vacation homes to rent. There will be a lot of online postings of homes that you can rent from different places. Aside from this, you will also be able to read feedbacks from previous clients. This will give you an idea about how good (or bad) the accommodation is.

If possible, try to look for a house to rent with a good locale. Although this may cost much, at least you are getting the best from what you paid for. You can also try to ask from your friends or neighbors if they can refer a good vacation house to rent.

Read and understand the contract before signing.

The contract is an agreement between the home owner and you, which would include details like who pays for the bills for the utility, phone and cable. Also, this would include who will be responsible for housekeeping. There are those home owners that have regular cleaners come by to take care of the house, while some would leave this responsibility to the renters.

Take note of the important details as well such as the furniture and basic facilities inside the house such as the heating system or air conditioning system. Get the contact number of the owner so you can contact him immediately for urgent concerns.

Document the area upon arrival.

This may take some effort from you, but it may save you from problems in the future. Upon arrival, take a photograph or video the area, especially in areas where there is damage so you can avoid argument upon checking out. It is always better to be safe than sorry.

Check and recheck before checking out.

Before giving back the place to the home owner, walk around the area with him to ensure that everything is where it is supposed to be. Run through the bills that you have paid to avoid confusion or paying for them twice. Through this, you can assure the home owner that you have taken good care of his property.

Renting vacation homes for starters may be handful, but through careful planning and early booking, problems can be avoided. Nobody wants to be stressed out while on a vacation.

Mumbai is denying the luxury of buying a new property by having exorbitantly priced real estate. Most of the population living in Mumbai either live of houses that have been bought well before the prices went sky high or are living under rent or the Pagadi system. The Pagadi system is an ancient system of rent followed in Mumbai from the time of the 2nd World War. It is very much similar to the rent system prevailing globally but the only difference is that the tenant also becomes a part owner of the land!

The system protects the tenant more than the traditional renting system does. The landlord will not be able to evict the residents easily and the tenant is entitled to sell the house! The tenant is entitled to the house but not the land. The house can be sold to a new tenant for a percent of the capital value and a percentage of the money made goes to the tenant while the majority is given back to the owner. The tenant pays a nominal amount as rent to the land owner! Banks do not support this system of renting or buying a house, understandably!

This system causes a lot of legal issues especially for the landlord who has to go through a long, painfully cumbersome process should he choose to evict a tenant. Also, the Rent Control Act had protected the tenants who pay a fixed rent and also their right to the property rented by the Pagadi system is passed on through inheritance!

However, the Maharashtra state government has now decided that it will no longer include residential properties smaller than 500 sq ft and commercial properties smaller than 800 sq ft under the Rent Control Act. This will directly affect the Pagadi residents of Mumbai who have been residing for years now in the rented houses! Nariman Point and Marine Drive, two of the most costly real estate spots in Mumbai are dotted with Pagadi properties. It is estimated that a total of 52,000 people still live under Pagadi!

This comes in as a good news for landlords who will now have the power to enforce rent based on the capital value and taxes. It will also empower the landlords to move people out if they are not able to pay the property taxes that the government is looking to levy.

Though in a sense it seems that the unfair balance against the landlords have come to an end, it has to be noted that many of these Pagadi residents have also paid huge sums of money to their landlords already and asking them for more would put them in a tight spot. The solution would be for landlords to take the remaining money and register the property in the name of the tenants.

The residents of South Mumbai will be the most affected by the change in the legalities since many properties are under the Pagadi system.

Sri Lanka is one of the many countries that have signed up with the Vienna convention on Road traffic. This convention has been ratified by 73 countries as of today. This is actually a treaty that was designed in order to encourage road safety and to initiate international traffic rules among certain parties that are contracted with the treaty. This contract was finalized in Vienna on 8th Nov 1986 at the United Nations Economic and Social Council’s Conference on Road Traffic. The significance of this treaty is less known worldwide but it should be pointed out that it makes traveling on your holiday so much easier for all tourists visiting the country. Sri Lanka basically follows the standardized road traffic signs similar to the United Kingdom that have been slightly tweaked to go along with the island’s localized culture. They are fairly easy to follow even for a foreign driver. Traffic is manageable if you avoid rush hours and driving can sometimes be a pleasure.

The Vienna convention on road traffic treaty allows tourists of certain countries to drive around the country using their local driving licenses for a period of three months from the date that their VISA was issued. Although Sri Lanka has a good public transport network, the hassle and stress of traveling in a Sri Lankan bus or train would be far too much for a foreigner and self driving or renting a car for the period of stay is advisable. There are many reliable rent a car services available in the city that assists foreign tourists to seek guidance on the particular vehicle they should hire depending on their length of stay. This process could even be done beforehand during the planning stage of a trip where one could book and secure a particular vehicle via a booking system online. If the tourist is extending his stay on the island, the process is basic and simple; they would simply have to convert their local driver’s license to a Sri Lankan driving license by providing the necessary documents to the Department of Motor Traffic. This process could be done within a day.

The first thing to do before you leave for your trip to Sri Lanka is to research for rent a car services online. The internet will be your guide for this. There are many companies that are available to assist you. It will be better if you book a car online as this will save you some time and you could enjoy the country more.

Not all Realtors are capable of helping you with the keys to your new home in Florida with rent-to-own, lease-option, or lease-purchase terms.

Smooth talking won’t do it.

Expensive designer clothes won’t do it.

The most-expensive PDA-cell phone attached to the side of their head won’t do it.

And that shiny BMW won’t do it either.

Realtors who do not specialize in rent to own Florida home opportunities may actually hurt you more than they help you.

They don’t understand your financial condition — they’re trained and accustomed to working with buyers with “A” credit and big down payments.

They don’t know how to protect your interests with the specialized paperwork involved in rent-to-own home transactions. This lack of understanding could put you in serious legal jeopardy if the realtor attempting to offer rent to own services had simply driven to Office Depot or Kinkos looking for a Lease-Purchase Contract.

Ideally, you want to partner with a Realtor who specializes in and works full-time with rent-to-own home opportunities, not a Realtor who reluctantly attempts a rent-to-own only when his/her pipeline of “A” buyers runs dry.

A realtor specializing in rent to own opportunities in Florida will understand the importance of home inspections and disclosures such as property, homeowner’s, and mold.

That licensed rent to own home specialist will also inform you of any Community Development District (CDD) implications.

He/She will also research comparable sales and negotiate aggressively on your behalf for the best deal on your new home.

The intent of both parties should be to achieve a successful transfer of ownership at the end of the lease term.

The bottom line is that the Realtor must specialize in rent-to-own opportunities or it won’t matter how many nice homes that Realtor can locate on MLS.

If you can’t qualify to buy the home on which the Realtor is representing you, then you cannot buy the home.

Your situation requires owner financing with rent to own terms, and you need referrals to mortgage specialists who focus on working with people with damaged credit.

A quality company providing credit repair services will also benefit you as you work during the lease term to improve your damaged credit.

The indoor restroom is a nominal choice for limited usage, perhaps the perfect fit for less frequent use though. Then comes portable toilet, a square-shaped movable unit with all the necessary features incorporated within the compartment. It plays a vital role as restroom where the indoor facility stays back. Just like a construction site, birthday party, wedding ceremony, live concert, sports event and public events and for many other special occasions; portable toilet is a standout choice for sanitation facility outdoors.

Since the unit has many up lines in its benefits column, many individuals have expressed some down lines too, such as

• Stinky smell
• Lack of cleanness
• Unmatchable units (old fashioned products)
• Lack of on-time delivery of the unit
• Pricey rental tags

On the other hand, the most of the long-term customers are satisfied with portable toilet performance so far, also they have expressed a positive opinion about the facility. Whereas the service provider’s opinion remains same in this context too, they believe, only a wrong selection of the unit or lack of proper information about the vendor service would result in uncertainty but it’s not the same if you are careful making a rental choice.

Let’s keep the opinion aside and take a dive into the context to know whether to rent or not to rent a portable toilet.

Stinky smell: The ambiance of the unit is essential to comfort the user. The poor maintenance of the unit would result in stinky smell and the chances of individual accessing the unit will reduce. Thus the regular cleaning is important to keep the unit clean and smell good. Although, sometime you may also receive a partially cleaned unit from the service provider; it could be unintentional attempt though.

If you follow the basics to ensure the status of the unit during the delivery; it would save you from the awkward situation. Therefore, portable toilet doesn’t come with the stinky smell, but poor maintenance does.

Lack of cleanness: In contrast to the indoor restroom, cleaning the portable toilet is easier and less time taking process, also once it gets cleaned; it can be sustainable for multiple uses. The lack of cleanness may cause adverse effects such as poor hygiene and stinky smell and like that. When not cleaned, it may leave a negative impact on user mindset, where they assume renting a portable toilet is a serious mess and they refrain from utilizing the facility.

Most of the service providers offer the cleaning facility for both long and short term rentals; also you need to check the unit condition while they deliver it to your location.

Unmatchable units: The well-maintained unit will never look old nor out of fashion, it’s all about the customer perspective from unit to unit. For parties and special occasions, people tend to choose well furnished and good looking unit, which could cost little more than the usual. If you are certain about the specific model or color then you may need to spend few extra bucks.

Keeping the trend on forth, service providers will revamp the units according to customer need, thus its rare chance where you find the old fashioned unit.

Lack of on-time delivery of the unit: When you place an order at the last moment, and you receive the unit late or sometime service provider cancels the order due to some reason, then it is a horrible situation for any individual. These scenarios take place due to two reasons either, customer call or service provider call.

When you choose a service provider, got through the customer reviews about their service; it helps you make a sensible decision. And sometimes, due to bad weather or transportation issues; a service provider may not keep up the timing, but these situations rare these days, they always have their backup plan to ensure the punctuality.

Pricey rental tags: Before contacting a service provider, you might have searched for how much does it cost to rent a portable toilet? It is sensible to move though, but how good is the obtained result, are you satisfied with it? Well, the rental price tends to change based on the location, season, and the amenities, thus, you need to have a clear picture on the prerequisites of renting a portable toilet such as a number of participants, duration, and the budget range. If you are sure about what you need, then it’s not difficult task to search for a cheaper rental deal.

Renting a portable toilet is based on the type of requirement, approximate budget limit, duration of rental period and of course the trustworthy service provider. Thus, it’s not about whether to rent or not to rent a portable toilet, but it’s all about how good you understand your requirement and make smart a rental decision.

The commercial real estate market for small businesses is tight. There's a shortage of office space for rent because the growth of startup companies has increased competition for commercial properties. The ideal space allows employees and clients to feel comfortable. As an entrepreneur, you need to find an affordable office space for rent that not only meets your current needs but also is flexible and allows for future growth. There are several factors that will impact this decision.

Commute

Key employees' commute times should be considered. Ask them how far the space is from their homes. If many are going to have a longer commute, then you may need to look elsewhere. Extended commutes not only cause frustration but also are more expensive for your employees. A central, easy-to-access building will help you maintain your top talent as well as give you a competitive advantage when recruiting new staff. If you're interested in moving to a city center, a location near public transportation routes could make your company more appealing, especially to Millenials.

Room to Grow

If you're planning for short-term growth, be sure to get a short-term lease. Office space for rent typically involves hefty fees for early contract termination. A lessee also needs to know if the company can undertake any amendments to the space, like painting or decorating. As your company grows, you may want to alter the space around you.

Location

Determine how the neighborhood might look or feel to clients and consider the proximity to the largest portion of your client base. During this technological age, face-to-face interactions need to be convenient. Buildings in urban cores are pricier, but moving your business to a decentralized location could cause you to lose clients. Every office space for rent has a return on investment, and you want to make sure the ROI on your new space is as high as possible.

Surrounding Environment

What is the environment like around this space? If you're in an urban setting, think about the parking situation for both your clients and your employees. Take a look around to be sure there are restaurants or cafes within walking distance for meetings or lunches. Is there a place nearby where workers can walk or exercise on their lunch break? Regular breaks are scientifically proven to increase overall productivity, improving your bottom line. Visit the building or location at different times of day to get a feel of traffic patterns and parking. All of these characteristics of the surrounding environment will impact morale and happiness, which is crucial for continued growth.

Your business is successful because of strategic planning. Finding an office space for rent is no exception. Know what you want, what you can afford, and all your options before you sign a lease. In the right space, your company will continue to grow.