Silly question !!
#61
The rent of a premises cannot be "put up because a business is doing well" , even when the rental contract period is due for renewal, there are scales which by the rent can be increased which is linked to inflation.
This is not a whim of a landlord as to rent that can be charged as tenants are protected to prevent a landlord from taking over business in this manner, ie by putting up an unworkable rent for the tenant.
The rental period when ended can then be renegociated and the new lease period set, ie 20 years, then the rent can be raised but there is no lump sum of money handed over to buy the lease,just aonther contract for a defined period and a rent rise.
A "lease or traspaso" is a totally different matter and applies to that actual business conducted in the rented premises and not to the bricks and mortar of the building its self, it is a contract involving a 3rd party, which comes into play when the "renter" of the premises where the business is located wants to sell on "the business side of the enterprise" ie the customer base and good name of the restaurant, nothing to do with the landlord.
Of course the lease will be set at a price that reflects the profit, because you are buying a ready made income from the "renter" of the property,
unlike the rental which will be pretty standard.
of course non freehold owners advertise, what a stupid thing to say, there are many successful business running from rented premises.
It is explained in English here:
http://www.spainbusinessguide.com/wh...-contract.html
This is not a whim of a landlord as to rent that can be charged as tenants are protected to prevent a landlord from taking over business in this manner, ie by putting up an unworkable rent for the tenant.
The rental period when ended can then be renegociated and the new lease period set, ie 20 years, then the rent can be raised but there is no lump sum of money handed over to buy the lease,just aonther contract for a defined period and a rent rise.
A "lease or traspaso" is a totally different matter and applies to that actual business conducted in the rented premises and not to the bricks and mortar of the building its self, it is a contract involving a 3rd party, which comes into play when the "renter" of the premises where the business is located wants to sell on "the business side of the enterprise" ie the customer base and good name of the restaurant, nothing to do with the landlord.
Of course the lease will be set at a price that reflects the profit, because you are buying a ready made income from the "renter" of the property,
unlike the rental which will be pretty standard.
of course non freehold owners advertise, what a stupid thing to say, there are many successful business running from rented premises.
It is explained in English here:
http://www.spainbusinessguide.com/wh...-contract.html
other landlords of course are more sensible & have brought rents down in order to keep good tenants
one owner has gone even further...... http://hastaqueseacabelacrisis.com/2...tunidad-javea/
www.euroweeklynews.com has the story in English but I can't get the website to open atm
#62
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Joined: Aug 2009
Posts: 5,008











I haven't time to read the link, but I believe you........however, it hasn't stopped some landlords around here telling tenants that their rent has doubled, leading to them either paying up & struggling/going bust, or moving on to other premises to save money
other landlords of course are more sensible & have brought rents down in order to keep good tenants
one owner has gone even further...... http://hastaqueseacabelacrisis.com/2...tunidad-javea/
www.euroweeklynews.com has the story in English but I can't get the website to open atm
other landlords of course are more sensible & have brought rents down in order to keep good tenants
one owner has gone even further...... http://hastaqueseacabelacrisis.com/2...tunidad-javea/
www.euroweeklynews.com has the story in English but I can't get the website to open atm
I know someone who is paying 190 euros a month rent on a premises and has been for years, the rent contract is nearly up and the rent will go up to 500, a large percentage increase but, still a fair rent, and if the business cannot support a rise of 310 eros amonth after20 years, then maybe they should move on to pastures new.
As for newish renters having rent doubled, if all is registered in the camerade comercio, there are limits and rules, which should have been thrashed out when signing the initial contract.
This is where the people who have no business sense come unstuck, as even allowing for the lack of language skill, the "renter" still should have some idea of how these things work, and what they can realistically pay in rent etc, and not leave it to chance.
Another reason could be that the rents have doubled because, the had a discount for the first year or so from the landlord, to get them up and running, and now a proper market rent comes into force.
Dont forget not everyone is cut out to run their own business.
At the risk of sounding nasty, blaming the rent rise for the business failing make a change from the usual"missing the grandchildren" excuse.
A German guy put it about that his landlord was doubling rent, so he could not continue to trade it was bollox, I knew because he was my tenant!!!!!
#63
Lost in BE Cyberspace










Joined: May 2009
Posts: 5,753
From: Alicante province











The previous, automatic rent rises when a lease expired seem to have ceased in my area, and new leaseholders are often able to reduce the rent.
Even the old-fashioned Spanish freehold owners are waking up to the fact that we are in a recession, and that leaving their premises empty for long periods of time is no longer feasable.
They're better off to rent them out to charity shops for next to nothing, just to get some income, while waiting for the next Chinaman or Indian to come along with a big bag of black Euros.
Or yet another mad Englishman who wants to run a bar in the sun.
Even the old-fashioned Spanish freehold owners are waking up to the fact that we are in a recession, and that leaving their premises empty for long periods of time is no longer feasable.
They're better off to rent them out to charity shops for next to nothing, just to get some income, while waiting for the next Chinaman or Indian to come along with a big bag of black Euros.
Or yet another mad Englishman who wants to run a bar in the sun.
#64
Lost in BE Cyberspace










Joined: Apr 2009
Posts: 7,749











Yes now that is true for Amazon or Easyjet, but it wasnt true for those businesses when they just started
If you are not a well recognised brand name then people will not book through your site without talking to someone first. Yes it depends on the business a little and on the value of the transaction, but it is a good rule of thumb
My OH sells language courses on the internet, and has never had anyone book directly online. They always email or call first to discuss the product and what they need - and to suss you out
As for most European customers speaking English. Just nonsense. If what you are selling is very unique then it may not matter so much, but if not, people will go to a company or website in their own language unless their level of ENglish is very good. In Spain, less than 1% of Spaniards (probably more like 0,01%) would be at this level
#65
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Joined: Aug 2009
Posts: 5,008











The previous, automatic rent rises when a lease expired seem to have ceased in my area, and new leaseholders are often able to reduce the rent.
Even the old-fashioned Spanish freehold owners are waking up to the fact that we are in a recession, and that leaving their premises empty for long periods of time is no longer feasable.
They're better off to rent them out to charity shops for next to nothing, just to get some income, while waiting for the next Chinaman or Indian to come along with a big bag of black Euros.
Or yet another mad Englishman who wants to run a bar in the sun.
Even the old-fashioned Spanish freehold owners are waking up to the fact that we are in a recession, and that leaving their premises empty for long periods of time is no longer feasable.
They're better off to rent them out to charity shops for next to nothing, just to get some income, while waiting for the next Chinaman or Indian to come along with a big bag of black Euros.
Or yet another mad Englishman who wants to run a bar in the sun.
The want a place and they want it now, so that they can get cracking and make money.........
It is lack of business sense, lackof patience and in many cases not wanting to pay out a few bob now, to save them a lot of possible hassle in the future.
I have seen it all, from one guy wanting a place where the rent was only 300 a month, it was already closed, no going in money to pay just a months rent up front, all equipment included, buthe was responsible for the upkeep and repairs.
The fool did not have the gumption to ask around as to why it was closed, because the previous tenant still lived a few doors down,
Bar fridges were all but knackered and after spending hundreds or repairs, needed to be replaced, same with some of the kitchen stuff, so the easy in , now expense option has now cost him a few thousand, SO FAR...............
#66
Lost in BE Cyberspace










Joined: May 2009
Posts: 5,753
From: Alicante province











Good point, so many dont understandwhat they are signing, and even if they did they would still sign anyway!!!!!
The want a place and they want it now, so that they can get cracking and make money.........
It is lack of business sense, lackof patience and in many cases not wanting to pay out a few bob now, to save them a lot of possible hassle in the future.
I have seen it all, from one guy wanting a place where the rent was only 300 a month, it was already closed, no going in money to pay just a months rent up front, all equipment included, buthe was responsible for the upkeep and repairs.
The fool did not have the gumption to ask around as to why it was closed, because the previous tenant still lived a few doors down,
Bar fridges were all but knackered and after spending hundreds or repairs, needed to be replaced, same with some of the kitchen stuff, so the easy in , now expense option has now cost him a few thousand, SO FAR...............
The want a place and they want it now, so that they can get cracking and make money.........
It is lack of business sense, lackof patience and in many cases not wanting to pay out a few bob now, to save them a lot of possible hassle in the future.
I have seen it all, from one guy wanting a place where the rent was only 300 a month, it was already closed, no going in money to pay just a months rent up front, all equipment included, buthe was responsible for the upkeep and repairs.
The fool did not have the gumption to ask around as to why it was closed, because the previous tenant still lived a few doors down,
Bar fridges were all but knackered and after spending hundreds or repairs, needed to be replaced, same with some of the kitchen stuff, so the easy in , now expense option has now cost him a few thousand, SO FAR...............
My stupid brother-in-law, bought three premises, all trading successfully, when the recession struck. He's back in the UK now, around 300K the poorer. And his wife f***** off with a Spaniard.
#67
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Joined: Aug 2009
Posts: 5,008











Every British bar or restaurant, or any other business, in my area is for sale at the moment, every single one of them. Recession may be the main reason, in fact it has to be because some of the traders are good at their trade, but they can't hack it without customers who are skint.
My stupid brother-in-law, bought three premises, all trading successfully, when the recession struck. He's back in the UK now, around 300K the poorer. And his wife f***** off with a Spaniard.
My stupid brother-in-law, bought three premises, all trading successfully, when the recession struck. He's back in the UK now, around 300K the poorer. And his wife f***** off with a Spaniard.
Most Brits who take on a bar/restaurant in Spain, would not dream of doing it in the UK.
If they did they would read the small print on contracts etc, and have legal advice every step of the way.
When in Spain, common sense seems to fly out of the window, people quote silly figures such as
"the rent is only 500 per month, we will only need to take 100 euros a day, we will work all hours, and life will be less stressfull than in the UK, we will be our own boss, I dont want to hear any negatives because we knowwhat we are doing and you are afraid that it might turn out to be a good business and you are just jealous, we are going to offer something different for the customers,and it is better to have tried and failed.....yada.....yada....
Amazingly there are still people who think that they can take over a dying on its feet place, in a crap street, in a run down area, offer a cheap brekkie and expect to make a living and enjoy life in Spain.
#68
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Joined: Feb 2011
Posts: 19,367
From: Mallorca











Nothing is easy.
I find that people everywhere often seem to use little common sense when investing in a restaurant or bar. I've seen so many bars open up in some off-beat little street somewhere, struggling to get any business, staying open year round in hopes of attracting 3 customers on any given day in December. Recipe for failure.
If you're going to open such an establishment, you absolutely must consider the potential traffic as your first metric. The 3 most important things: Location, location, and location
Ask these questions:
If you can't answer these questions, then you should seriously question whether you're making a good investment.
If you have a location that you feel is worthy, then you need to know how to offer something that people want, at a fair value. If you have to gouge your customers to make ends meet, you can kiss your business goodbye in short order.
If you can't figure out how to offer something desirable, and make a profit without gouging your customers, then you have a serious problem.
Once you solve all that, then the next question is how to market it and create a good perception to the people who are most likely to be your customers, without wasting too much on marketing to people who will never enter your establishment.
This is the tricky part, but if you use good common sense, develop strategic partnerships with other establishments in the area (hotels, tourist attractions etc), and use common sense advertising and ultimately, online guestbooks combined with opt-in mailing lists, facebook, twitter, etc - it can work well, once you've established a following and manage to keep it active and interesting. They'll recommend you publicly on Tripadvisor and write reviews, and so on.. it can really grow after a few years of running a good business.
If you can manage to cover all these things, you're much more likely to be successful - even in a down economy.
Nothing is easy.
I find that people everywhere often seem to use little common sense when investing in a restaurant or bar. I've seen so many bars open up in some off-beat little street somewhere, struggling to get any business, staying open year round in hopes of attracting 3 customers on any given day in December. Recipe for failure.
If you're going to open such an establishment, you absolutely must consider the potential traffic as your first metric. The 3 most important things: Location, location, and location
Ask these questions:
- How visible is this location? (is it on some side-street away from public eyes? Will people have to "discover" it?).
- How much traffic will this location provide on each day of the week?
- Hourly? Can I expect traffic only in the morning? Only in the evening?
- What is the most common nationality of the traffic (e.g., what food should I be serving, and what language(s) should my servers be most fluent in?) Is it seasonally dependent (tourism)?
- What attractions are there in the neighbourhood that will help bring traffic? (e.g, a tourist attraction, beach, a major government or public office, a famous landmark, etc) What are their hours and seasonal adjustments?
If you can't answer these questions, then you should seriously question whether you're making a good investment.
If you have a location that you feel is worthy, then you need to know how to offer something that people want, at a fair value. If you have to gouge your customers to make ends meet, you can kiss your business goodbye in short order.
If you can't figure out how to offer something desirable, and make a profit without gouging your customers, then you have a serious problem.
Once you solve all that, then the next question is how to market it and create a good perception to the people who are most likely to be your customers, without wasting too much on marketing to people who will never enter your establishment.
This is the tricky part, but if you use good common sense, develop strategic partnerships with other establishments in the area (hotels, tourist attractions etc), and use common sense advertising and ultimately, online guestbooks combined with opt-in mailing lists, facebook, twitter, etc - it can work well, once you've established a following and manage to keep it active and interesting. They'll recommend you publicly on Tripadvisor and write reviews, and so on.. it can really grow after a few years of running a good business.
If you can manage to cover all these things, you're much more likely to be successful - even in a down economy.
Nothing is easy.
Last edited by amideislas; Apr 22nd 2012 at 9:10 pm.
#69










Joined: Jun 2011
Posts: 12,053
From: In the middle of 10million Olive Trees











Why are business people complaining about lack of income and yet they are making little effort to be found?
Everyone knows how hard it is to make a business work, but Please, "no pain, no gain".
Ex pats and locals alike, would like to know where they can find suppliers and services local to them. So WHY do the businesses not let them know where they are?
Everyone can complain that the world is giving them a hard time but it takes real people to stand up and be counted.
If you read through many threads on here, there are many people asking where to find services or suppliers....WHY.
If these businesses want to be found, stop complaining that life in Spain is hard, do something about it.
When people ask, "where is a plumber" How do I find this", "Find it for me", they are asking for assistance. Instead of complaining about the monthly costs of running a business in Spain, let these people know where you are.....Everyone wins...
Everyone knows how hard it is to make a business work, but Please, "no pain, no gain".
Ex pats and locals alike, would like to know where they can find suppliers and services local to them. So WHY do the businesses not let them know where they are?
Everyone can complain that the world is giving them a hard time but it takes real people to stand up and be counted.
If you read through many threads on here, there are many people asking where to find services or suppliers....WHY.
If these businesses want to be found, stop complaining that life in Spain is hard, do something about it.
When people ask, "where is a plumber" How do I find this", "Find it for me", they are asking for assistance. Instead of complaining about the monthly costs of running a business in Spain, let these people know where you are.....Everyone wins...
when in fact they should be increasing their advertising to make more people aware.
looking at recent copies of expat newpapers many of the old stalwarts have cut their advertising down to nothing but are still trading.
one of the reasons expats ask here for suppliers is because they are looking for a recommendation rather than take the risk of being fleeced in a foreign land.
#70










Joined: Jun 2011
Posts: 12,053
From: In the middle of 10million Olive Trees











Of course the recession is the main culprit in bankrupsy, but there is a lot of stupidity when bying a "business in Spain".
Most Brits who take on a bar/restaurant in Spain, would not dream of doing it in the UK.
If they did they would read the small print on contracts etc, and have legal advice every step of the way.
When in Spain, common sense seems to fly out of the window, people quote silly figures such as
"the rent is only 500 per month, we will only need to take 100 euros a day, we will work all hours, and life will be less stressfull than in the UK, we will be our own boss, I dont want to hear any negatives because we knowwhat we are doing and you are afraid that it might turn out to be a good business and you are just jealous, we are going to offer something different for the customers,and it is better to have tried and failed.....yada.....yada....
Amazingly there are still people who think that they can take over a dying on its feet place, in a crap street, in a run down area, offer a cheap brekkie and expect to make a living and enjoy life in Spain.
Most Brits who take on a bar/restaurant in Spain, would not dream of doing it in the UK.
If they did they would read the small print on contracts etc, and have legal advice every step of the way.
When in Spain, common sense seems to fly out of the window, people quote silly figures such as
"the rent is only 500 per month, we will only need to take 100 euros a day, we will work all hours, and life will be less stressfull than in the UK, we will be our own boss, I dont want to hear any negatives because we knowwhat we are doing and you are afraid that it might turn out to be a good business and you are just jealous, we are going to offer something different for the customers,and it is better to have tried and failed.....yada.....yada....
Amazingly there are still people who think that they can take over a dying on its feet place, in a crap street, in a run down area, offer a cheap brekkie and expect to make a living and enjoy life in Spain.
As a dog is for life not just for Christmas
A business is for life not just for the holidays.
#71
Thanks Domino,
Before I reply to this, I would like to thank you for your reply, for seeing the point and not pretending it isn't there and for giving a genuine comment, on an issue that is very important (in my mind) to all expats and local business.
This is my point but why does it seam so hard for these firms to realise it. Maybe the idea of living off of previous work or word of mouth, is their idea?
I have also noticed this.
I agree completely. If there was a way to advertise withing the expat community and have a system where other expats could recommend or not, maybe this would relieve some of that concern. Also, giving the expat a position of control, over their needs. Not only relying on one expat forum (as there are many) but having the views of many expats and locals alike?
Thanks again for your reply.
Before I reply to this, I would like to thank you for your reply, for seeing the point and not pretending it isn't there and for giving a genuine comment, on an issue that is very important (in my mind) to all expats and local business.
Thanks again for your reply.
#73
squeaky clean






Joined: Mar 2010
Posts: 1,576
From: Spain 4th feb 08 - October 11, now flits batck and forth from sunny Worthing











I agree completely. If there was a way to advertise withing the expat community and have a system where other expats could recommend or not, maybe this would relieve some of that concern. Also, giving the expat a position of control, over their needs. Not only relying on one expat forum (as there are many) but having the views of many expats and locals alike?
Thanks again for your reply.
Jo xxx
#74
Its certainly not something I or anyone I know would trust. People prefer proper recommendations from people they know. i certainly wouldnt bother firing up the computer and scouring the internet, or even going on the forums if my washing machine broke down or I wanted a local restaurant to go to - just to see what some other expat or fake comment said. At best I'd look in the local paper.
Jo xxx
Jo xxx
As they say, you can lead a horse to water but you can't make it drink.
Some people may well have been in the area they live, for some time. They might have got to know many people, to get this advise from. Someone just arriving could be in a very different situation. Saying that, unless someone cant quote "I know everything", there comes a time that (even locals) a little help is good.
#75
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Joined: Aug 2009
Posts: 5,008











Its certainly not something I or anyone I know would trust. People prefer proper recommendations from people they know. i certainly wouldnt bother firing up the computer and scouring the internet, or even going on the forums if my washing machine broke down or I wanted a local restaurant to go to - just to see what some other expat or fake comment said. At best I'd look in the local paper.
Jo xxx
Jo xxx
There are some business that would benefit from advertising further afield, but to rely on expats using other expats just because they happen to speak the same language is a bit of non starter in my opinion.




