Chapter Thirty-Nine: Signing the Contract

After leaving, Li Mu called the landlord. The person who answered was a woman.

“Hello, who is this?”

“Hi, has your shop at the West Gate been rented out yet?”

“Oh, not yet.” The woman’s tone instantly warmed. “Are you interested? Let me tell you, this storefront is just days away from its lease expiring, and I’ve had a lot of inquiries lately!”

Li Mu smiled faintly. “What’s the price?”

“That depends on how you want to rent it,” she replied with a laugh. “Business has been good this year. You see that Baleno store not far from us? Rumor has it they make tens of thousands a month. My shop is much bigger and wider than theirs—perfect for putting up a big sign, very impressive.”

Li Mu pressed, “Just tell me directly—what are the terms and the price?”

After a moment of hesitation, the woman said, “If you pay yearly, it’s eighty-eight thousand for one year. I originally wanted ninety thousand for luck, which comes out to about seventy-three hundred a month.”

“How long is the lease?”

“I think it’s best to sign for one year at a time, or two at most. As you know, the market is constantly changing, so I can’t sign for too long at once.”

“Ma’am,” Li Mu said calmly, “I think you overestimate the spending power of people here in Haizhou. You say Baleno makes tens of thousands a month, but who knows if that’s true? You can’t show anyone their sales records, so how could someone rent at your price based on hearsay?”

His words hit the mark.

The landlord herself felt that since Baleno next door was so profitable, this shop’s rent should go up too. But all of Haizhou hadn’t yet come to see the clothing market as booming, so even if a landlord is forward-thinking, it’s useless unless an investor shares that vision; otherwise, no one will rent at a high price.

She’d spread the word through her network, and the feedback mentioned some were considering opening a franchise store, but were still hesitating. After all, the investment is hefty: the franchise fee, renovations according to the head office, stocking up, hiring staff—compared to those, rent is minor. So people were reluctant to commit.

Most of the feedback she got was that the rent was too high, which left her troubled. In three days, the lease would expire, and she could reclaim the shop. But if it sat empty, she’d lose two to three hundred a day.

“Are you planning to open a franchise store?” she probed.

“Haven’t decided yet,” Li Mu sighed. “I’d like to, but the other costs are just too much. Even hiring a salesperson these days costs five or six hundred. You say Baleno makes tens of thousands a month, but their expenses are high, too. Can you open a franchise without investing four or five hundred thousand?”

The woman drew a sharp breath. “So how do you want to rent it?”

Li Mu considered. “A two-year lease is out of the question. If I do open a franchise, just the renovations will cost a hundred thousand or more. What if you decide not to renew after two years?”

“Then you tell me—how do you want to rent it?”

“Here’s my offer,” Li Mu said. “I won’t haggle—eighty-eight thousand it is. But the lease is for five years, no rent increases during that time. After five years, I have first right to renew at market price. Rent is paid annually, first year up front, and I get the right to sublet.”

In fact, this shop’s rent had only been about sixty thousand a year before. The landlord wanted to raise it to eighty-eight thousand, but knew she probably couldn’t get that. Still, she figured rents would rise in the coming years, though she wasn’t sure by how much. Maybe in five years it could reach a hundred thousand a year?

Hard to say. Eighty-eight thousand locked in for five years—actually, not bad. At least it was stable. If the economy soured, she’d be stuck with it otherwise.

After a minute’s thought, she said, “Alright, let’s do it your way. But you’ll have to pay a deposit—let’s say twelve thousand, make it an even hundred thousand.”

“Deal.”

“When do you want to sign the contract?”

“Anytime,” Li Mu replied with a smile. “I’m in Haizhou. Once we sign, I can transfer the money to you as long as the bank is open.”

“Then you name the place, I’ll come find you. We can get the contract printed at a copy shop, then go to the bank.”

Li Mu thought of the copy shop at the entrance to No. 1 Middle School, which also had a branch of the Construction Bank nearby. “Meet me at the copy shop by No. 1 Middle School. Bring your ID, the property deed, and your Construction Bank card. You have all those, right?”

“Yes, I have a Construction Bank Dragon Card.”

“Perfect. I’ve got my ID and card on me, so I’ll see you there.”

Li Mu knew he might have been able to push the price down further, but he sensed the landlord’s hesitance about signing a long-term lease, afraid rents might soar in the future. From their conversation, though, it seemed she herself was unsure what the market would do.

So regardless of whether this was the lowest price, Li Mu understood it was definitely a good deal—an excellent one, in fact.

Five years was more than enough time. By then, his parents ought to enjoy a well-deserved retirement. They’d still be under fifty, but would have earned the right to begin a peaceful life.

Li Mu headed straight to the copy shop at the school gate. The landlord hadn’t arrived, so he asked the staff to print out a contract template. He dictated, and the clerk typed.

Fortunately, they had a popular, simple lease template on hand. Li Mu made a few modifications, specifying the price, deposit, payment method, contract term, and added a clause prohibiting rent increases during the lease. He also included a right of first refusal to renew at market price, and the right to sublet.

As for defining market price, it would be calculated as the average annual rent of the neighboring shops on either side.

Once the contract was ready, a middle-aged woman arrived on a motorcycle. She looked about thirty-five or thirty-six, slightly plump.

Upon entering, she glanced around and saw only two people by the computer—one typing, the other, a young man, seemingly learning to type. She took out her phone, preparing to call Li Mu.

Li Mu didn’t immediately reveal himself. He waited for his phone to ring and for her to glance over again before waving his phone. “Hello, are you the landlord?”

The woman looked at Li Mu in surprise. “You can’t be more than twenty years old!”

Li Mu thought that since they’d have to check IDs to sign the contract anyway, there was no point in hiding. “Just turned eighteen.”

“You’re not just messing with me out of boredom, are you?” She seemed a bit irritated but didn’t lose her temper, turning as if to leave.

Li Mu called after her. “Wait one more minute, the contract is almost printed. Take a look first. The Construction Bank is just two hundred meters away, diagonally across the street. Once we sign, we can go transfer the money. I may be young, but I don’t have time for games. If I wanted to mess with you, I just wouldn’t have shown up.”

The woman paused and looked Li Mu over again. He was fair-skinned and handsome, his manner calm and unassuming, with an air of confidence that made her reconsider her earlier dismissiveness.

She thought, too, that if this young man really wanted to play a trick, wouldn’t it have been easier not to show up at all?

Just then, the printer whirred and spat out six pages.

Two copies of the contract.

Li Mu handed one to her. “This is a standard template. I’ve added a few details we discussed by phone—those parts are in bold. Please have a look.”

She nodded and began reading carefully.

A few minutes later, after finishing, she nodded to Li Mu. “Everything we discussed is here. No problem.”

“Then let’s sign now, and head to the bank for the transfer,” Li Mu proposed.

“Alright,” she replied, taking out her ID and property deed. She was still puzzled, though—what was an eighteen-year-old doing renting a shop for eighty-eight thousand a year?

Li Mu filled in his personal information, signed, and pressed his fingerprint. The landlord did the same. They exchanged copies and signed and stamped them again.

Seeing the name “Lu Xueping” on the contract, Li Mu politely said, “Ms. Lu, could I trouble you for copies of your ID and property deed?”