Tell Me. Why Buy a Lease On a Bar?
Many people don’t fully understand what a commercial lease is, so I often get asked the following question :
Why Lease A Bar When You Can Just Rent One?
The bars that are available for rent are usually:
- Closed for trading
- Not taking any money
- Or the rent is VERY high
A rental agreement lasts usually for one year and then you have to renegotiate the rent. Here are just a few problems that can occur:
- Quite often if you’ve done well the owner will take the bar back at the end of your contract.
- He/she may ask for a big increase in your monthly rental.
- He/she may sell the business at a good price because you have built up the trade.
When you lease a bar, you are buying:
- The customers
- The fixtures and fittings, machines etc
- The right to continue trading in the bar for 5-10 years and even after that you can, if you have the specific clause within your contract, renew for an extra 5-year period
- Rent increases are mostly in line with the Standard Inflation Index (IBOR) and at the end of the lease there will be an increase of typically 10-15%
- If you do well and build the business up, you can sell the lease at a profit
IMHO renting is a mug’s game.
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A Sunny Easter on the Costa del Sol. You Must be Ready!
By Easter you should have everything prepared for the summer season and if on top of that when Easter arrives, it’s warm and sunny, which is usually the case, you’ll be ready for the increased volume of trade that Easter, like any school holiday brings.One of the things that’s just so nice about living and working on the Costa del Sol, is that when the sun shines, which is most of the time, people are so happy and smiling and when your customers are like that, it’s so lovely to work with them and you don’t need any reminding why you left the UK or wherever to come here.
If I may just slip back into talking about work again; here are some of the things that you should have been working on during the winter months in readiness for the increased trade level that starts at Easter:
- Repaint or replace advertising boards.
- New plastic covered menus to start the new season.
- Redecoration of the premises where required.
- New uniforms aprons etc. (With your logo on if possible.)
- Replace or repair any terrace furniture, which is looking tired.
- Replace any damaged parts of your awning.
- Replace anything in the kitchen that is looking old or is getting unreliable.
- Spring-clean every nook and cranny of your premises.
Good luck for the new season and don’t forget to start building your tan now ready for July and August when you’ll be in the pool a lot!
