Our tenants run a restaurant. Should we keep them or finish the contract?

[ubonr1971]

5 hours ago, JimTripper said:

Sounds like you are fishing for a reason to not be a landlord or rent the place out. Could be a territorial mindset (you looking in, frequent thought rumination, etc) or an envy problem that they are doing well (you mention their other businesses, etc).

 

I would say it's envy most likely. You feel like you need to protect what's yours more, because of the threat of them doing better and symbolically taking what's yours. Related would be wanting to increase the rent because they are doing so well, so what is theirs becomes yours in a way.

You couldn't be more wrong. Dont think too much pal. 

 

Give up the ganga. 

[ubonr1971]

7 hours ago, ThaiFelix said:

Living off the proceeds of hard working/rich Thais?  Im sure theres a hefty fine in there somewhere, its supposed to be the opposite?

This is not communist Cuba mate. Deriving rental income and paying taxes is normal in most countries. 

[geisha]

The basics should be done by the owner. I have had a few successful restaurants albeit in a country that is strictly regulated. The health and safety always checked once a year minimum. Electrician  plumber and all fridges / deep freeze  checked etc as in hot countries this is especially important., License up to date and good insurance. Get the experts in and you have peace of mind. You should be lucky to have good tenants in Thailand. Keep them and stop bothering them.. 

[ubonr1971]

6 hours ago, soi3eddie said:

 

Yes, that is true. A gas bottle won't explode on it's own unless it was engulfed in an inferno already. The biggest risk is that one of the supply lines to the cookers/hobs was to leak. This could lead to a build up of gas in the building. At the right concentration, one spark and BOOM! That would be my biggest worry. As others have suggested, ensure that the restaurant apparatus is inspected periodically by any safety/licensing body (if that's even a thing in Thailand). 

 

Yes. that is our worry as well. 

 

On the plus side.... They raise all the metal gates in the rest'. Its all open door / tables outside. No windows at all. They removed them all. So a lot of fresh air comes in. I think its low risk after reading your comments. Thanks for educating me about this

[ubonr1971]

5 hours ago, digbeth said:

'd be more concerned about them installing proper grease traps

May I ask what does that mean. I have no restaurant experience. is that a tray under the cooker to collect the oil?

[Gottfrid]

2 hours ago, ubonr1971 said:

I have a WP and we dont have a company structure. Many foreigners here do this. In fact I recently read a comment about a guy in Chiang mai thereabouts who is applying for citizenship. 

 

Respect your other comments above and agree with most of it. 

cheers

 

 

 

Ok, thanks for the answer, but I have a problem understanding. You have a WP, but not a company structure? That must mean you have a WP for something else? Am I right? Are you teaching or giving cooking classes? I just not get this one. Please help me in the right direction, as it otherwise might be a problem for you in the long run.

 

[ChrisP24]

I think you may be worrying way too much.   It's probably quite difficult to find a tenant to rent an entire three-story building, and you've been fortunate to have a good tenant for whom the building works so well that they've made a successful business out of it, and it appears that they may well continue to be your tenant for many more years.  Add to this the fact that they continued to pay rent even during the pandemic.

 

As successful business owners, your tenants have a strong interest in making sure that there are no mishaps like what you are worried about. You have insurance, they have insurance, and both of you can get more insurance if you are still worried. 

 

But if you really can't stop worrying, maybe consider selling the building.  It's probably at peak value right now in light of having such a good long-term tenant and the associated secure revenue stream in place.

[degrub]

2 hours ago, ubonr1971 said:

May I ask what does that mean. I have no restaurant experience. is that a tray under the cooker to collect the oil?

A grease trap is an underflow weir box on the water sewer line. It is a box, usually, with a partition in it. Water flows out under the edge if the partition. Fat/oil/grease (anything that floats) is  trapped in the upper half and must be cleaned out periodically.

[degrub]

2 hours ago, ubonr1971 said:

Yes. that is our worry as well. 

 

On the plus side.... They raise all the metal gates in the rest'. Its all open door / tables outside. No windows at all. They removed them all. So a lot of fresh air comes in. I think its low risk after reading your comments. Thanks for educating me about this

Are the gas bottles outside the building structure ? 
Thats is where they should be with a pipe running to the cooking hobs and other users. The only exception might be if the bottle is very small and could not release enough gas to fill 25% of the volume with an ignitable mixture. 
 

One of the main risks would be if a user were left on but no flame or if a leak occurred in the supply line overnight when the building is closed up and gas accumulates. Turning off the cylinder valve at the end if each day would be a reasonable precaution. A simple flammable gas detector would at least give some warning. 

[digbeth]

11 hours ago, ubonr1971 said:

May I ask what does that mean. I have no restaurant experience. is that a tray under the cooker to collect the oil?

in the plumbing, it's a thing to trap grease they pour down the drain even from washing dishes if they don't have it, your drain's gonna be blocked, most municipalities won't give restaurant license if they don't see it installed

[ubonr1971]

12 hours ago, geisha said:

The basics should be done by the owner. I have had a few successful restaurants albeit in a country that is strictly regulated. The health and safety always checked once a year minimum. Electrician  plumber and all fridges / deep freeze  checked etc as in hot countries this is especially important., License up to date and good insurance. Get the experts in and you have peace of mind. You should be lucky to have good tenants in Thailand. Keep them and stop bothering them.. 

for the fridges and freezers, what do they check exactly. I think its a risk as well. thanks

[ubonr1971]

10 hours ago, Gottfrid said:

Ok, thanks for the answer, but I have a problem understanding. You have a WP, but not a company structure? That must mean you have a WP for something else? Am I right? Are you teaching or giving cooking classes? I just not get this one. Please help me in the right direction, as it otherwise might be a problem for you in the long run.

 

my wife and I run a small business together. Not a restaurant or teaching or anything like that. Business is in her personal name. Taxes are paid every 6 months. We still pay social security to all the staff. I have a WP based on this. Many westerners do. Company structure is not mandatory for a WP but many farang think it is. 

[Celsius]

On 8/23/2024 at 9:21 PM, mogandave said:

You’re insured, yes?

 

He is, but it doesn't matter because insurance in this case will most likely be invalid.

[baansgr]

I doubt you should even be doing inspections, even with a WP that would be a reserved occupation. Let the Mrs handle it

[steven100]

On 8/23/2024 at 8:56 PM, ubonr1971 said:

Im trying to make a decision as to whether or not keep our tenants or replace them. 

 

They started renting our 3 storey building 4 yrs ago. They have a busy successful restaurant. Its in prime location in our city right opposite the shopping centre

 

Positives:
- They didn’t cancel the contract during the quiet covid years
- Friendly enough. They are well off financially and travel to Europe. But not stuck up and pretentious. 
- Pay rent on time. Never defaulted on the rent. 
- Now we get 59k a month. 
- Most of their staff are from Cambodia. Very friendly to me when I do inspections. 

Negatives:
- All their staff live in the upper 2 floors. The place is really dirty but normal I suppose
- We installed a new fire alarm in Jan. At a recent inspection I was pissed to see it was unplugged. Tenants assure us it will be on all the time from now on. 
- We worry about gas explosion/ fire. They have a line of gas cookers in the kitchen. Also a cooking area in the section where the guests sit at the tables. I read online that this is illegal in Thailand. If you own a restaurant here could you please comment. 
- I drive past the building several times a day bc our land is nearby. I rarely see them inside. We think they are never there. They have several other restaurants and a hotel. I probably see him in there once a month at our building

 

We pay 50% each on 2 insurance policies. 1 for fire /explosion damage to our building. 1. For 3rd party damage to neighbours building

I suppose Im worried what happens if, in worse case scenario, gas bottle explodes in dining area with many fatalities. Ins polices might pay out for damage to building’s. If tenants don’t play ball and we have to take them to court, it could take years. Currently the contract is with them personally. But this year they changed to company structure. If we renew the contracts should we do contract with their company or keep to personal names? If you have experience with this in Thailand NOT your western country please make a comment. 

Does anyone know if a permit to operate gas cooker is required at a restaurant in Thailand or does it come with the general license issued by the local govt dept?

 

At the end of Aug’, this month, we could give them 4 months notice to terminate the contract and they are out at the end of Dec. I think its safer to rent to a motorcycle shop or a furniture outlet for example. Im seeing on the news gas explosions all the time. Warehouses, buildings and houses on fire. 

 

Am I thinking too much about this. Thai landlords probably would not give a crap about the risks. My wife doesn’t care. She says leave them alone. TIT. Should I just put my head in the sand as well??

 

New tenants could be double trouble. Just don’t know what you get when tenants first move in. 

 

Whats your opinion. What would you do in this situation getting 708,000 a year in rent for a high risk business? Or do you think its low risk. Gas bottles rarely explode.....
thanks

 

They sound like good tenants.     Many landlords would love tenants like yours.

 

You sound like a problem landlord.    Many tenants usually try to avoid landlords like you.

 

You should be pleased with them and let them stay as long as they like.  

 

Just keep reminding them of the safety requirements with gas. 

Maybe have the local fire chief pop in sometime and advise if anything needs updating or doing.   

 

You are lucky to have such good tenants,  appreciate them. 

[Trippy]

Threads like this is the reason I only rent from Thai's, Farang think too much. 

[ubonr1971]

2 hours ago, baansgr said:

I doubt you should even be doing inspections, even with a WP that would be a reserved occupation. Let the Mrs handle it

hahaha. Thanks for giving me my first laugh for the day. 

 

Do you actually think doing a 20min inspection is a risk.... Immigration come running in arrest and deport me. Dont be rediculous. 

 

Im not getting income from it. Duh. Its boring to read such fearful comments by old folk who have no idea. 

[Celsius]

1 minute ago, ubonr1971 said:

hahaha. Thanks for giving me my first laugh for the day. 

 

Do you actually think doing a 20min inspection is a risk.... Immigration come running in arrest and deport me. Dont be rediculous. 

 

Im not getting income from it. Duh. Its boring to read such fearful comments by old folk who have no idea. 

 

You are 52

 

🙄

[john donson]

raise the rent 100% and see if they stay or cancel

[ubonr1971]

On 8/25/2024 at 11:01 AM, Celsius said:

 

You are 52

 

🙄

I suppose you think that one cannot mow the lawns or paint the house without a work permit....

[Rimmer]

Off topic post and replies removed

[Chris Daley]

Do it the Thai way:  Run the place into the ground.  Get them to fix it using their money.  Don't pay back their deposit.