A D V E R T I S E M E N T


Author Topic: "It's complicated" - rental situation advice  (Read 313 times)

0 Members and 1 Guest are viewing this topic.

Offline Bobby Lawn

  • Registered User
  • Posts: 72
  • Location: Northern Canada
  • I Love Pizza!
"It's complicated" - rental situation advice
« on: May 03, 2023, 01:38:25 PM »
Hello pizza wizards,

Backstory: My wife and I bought half of a building with a friend last June. We renovated the two apartments above our side of the building and have them occupied for cashflow. Main floor is a commercial space on a downtown street in our small city. Renovating the main floor for a bakery. Our friend has an instagram business that sells classic sourdough bread and baking and she needed a bricks and mortar.  I'm an aspiring (wannabe?) pizzaiolo who scooped up 75 full size Detroit pans last year with the goal of doing DSP pop ups out of the same bakery. I chose Detroit style because I can bake them in a convection oven that I bought - plus I feel I can train students to top and bake a Detroit pizza easier than a round pie, should i get to the point that i trust others to do it. 

The bakery renovation is nearly complete and now comes the hard part: how much should I charge my bakery tenant?.....*****if I'm also using the space a few times a month, and maybe more if it takes off and I quit my day job.

We will be getting a business/tax number to run the commercial rental (to recoup the taxes we paid on the purchase of it). We (the baker and my pizza gig) will both be paying rent to the rental company.

The baker won't be full time, but using it more as a ghost kitchen to bake bread for the farmer's market on Saturday, her instagram customers, and maybe a restaurant or two.

Right now the renters upstairs pay for most of the expenses/mortgage but some months I have to contribute - and once we're baking in there the electricity bill will rise (no gas ovens)
I was thinking of charging her a pay per use rent - $100/day with a minimum of $1000/month and a max of $1600/month and I would charge myself the same daily rate (but without the monthly minimum). So 4 Fridays in the month would be $400 for me.

We paid for the triple sinks, hand washing sinks, big fridge, convection oven, renovations..... the baker bought a boutique bread oven, mixer, proofing cabinet and tables on her own. So the equipment is a blend of both of ours and she will be using my convection oven for some stuff and I will be using her mixer and tables for my stuff. "it's complicated"


Any advice on how to determine the rent for the baker, rent for my pizza hustle, how to balance the two operations, anything else I should consider besides lawyers?

Thanks in advance!





Offline TXCraig1

  • Supporting Member
  • *
  • Posts: 31406
  • Location: Houston, TX
  • Pizza is not bread.
    • Craig's Neapolitan Garage
Re: "It's complicated" - rental situation advice
« Reply #1 on: May 03, 2023, 01:51:57 PM »
How much would a similar ghost kitchen rent for in your area?
"We make great pizza, with sourdough when we can, baker's yeast when we must, but always great pizza."  
Craig's Neapolitan Garage

Offline Bobby Lawn

  • Registered User
  • Posts: 72
  • Location: Northern Canada
  • I Love Pizza!
Re: "It's complicated" - rental situation advice
« Reply #2 on: May 03, 2023, 02:25:08 PM »
How much would a similar ghost kitchen rent for in your area?

She asked the local United Way kitchen and a church - they were both asking around $2000/month iirc - but they have much more square footage and ovens than I offer. I'm a quarter of their size.






Offline TXCraig1

  • Supporting Member
  • *
  • Posts: 31406
  • Location: Houston, TX
  • Pizza is not bread.
    • Craig's Neapolitan Garage
Re: "It's complicated" - rental situation advice
« Reply #3 on: May 03, 2023, 04:30:07 PM »
She asked the local United Way kitchen and a church - they were both asking around $2000/month iirc - but they have much more square footage and ovens than I offer. I'm a quarter of their size.

Are they permitted to make food for sale?
"We make great pizza, with sourdough when we can, baker's yeast when we must, but always great pizza."  
Craig's Neapolitan Garage

Offline chefmattboz

  • Registered User
  • Posts: 5
  • Location: Troy, MO
  • I Love Pizza!
Re: "It's complicated" - rental situation advice
« Reply #4 on: May 03, 2023, 05:58:36 PM »
I would do some research on commissary kitchen rentals in the area. Some rent by hour, day, or month. Maybe come up with a price and knock off a percentage since they have equipment and your sharing it.

Matt

A D V E R T I S E M E N T


Offline Bobby Lawn

  • Registered User
  • Posts: 72
  • Location: Northern Canada
  • I Love Pizza!
Re: "It's complicated" - rental situation advice
« Reply #5 on: May 04, 2023, 06:59:02 AM »
Are they permitted to make food for sale?

Yeah, the United Way kitchen is for the local food bank and has a full kitchen and the church has a really nice big kitchen - both are public health approved.


A D V E R T I S E M E N T


 

wordpress