Pub Rent Reviews

Since COVID 19, there has been a considerable impact on the pub trade. The change in demand will have a direct impact on rent for a pub rent review.  The majority of Tied rents (regardless of lease covenants) are able to fall at rent review. All pub rents are reviewed upward or downwards at lease renewal.

If you are facing a rent review or have not had your review formally documented please read this – it could save you thousands because most pub co’s allow rent to fall at review if proven to be over rented.

The key to rent reviews is the evidence available and the hypothetical “Fair Maintainable Trade” (FMT). In the post COVID trading environment, evidence is not available, or will be in short supply initially. Determining FMT without evidence will be subjective, both sides will have different views of trading potential, this will inevitably lead to greater levels of dispute and a rise in Third Party determinations, at a greater cost to the parties involved. Pub Innsite can assist with an appropriate strategy and a case to support a fair FMT.

You may also be able to secure a free of tie lease if your pub company has more than 500 tied pubs – click here if this is the case

• Is your Pub Co Lease Rent Review or Renewal Due soon or in the next 12 months?
• Is your Rent set by someone who is bonused on their rent line?
• Do you think your lease sale is blighted because you are over rented?
• Have you been offered “Nil Increase” on your review/ renewal if you act quickly?
• Is the new rent proposed exceptionally high?
• Do you think your renewal negotiations are unduly protracted?
  (Without a formal notice your new rent can not take effect)

Do you need Professional Representation on affordable terms that won’t impact your current cash flow?

In some instances Pub Innsite can operate on a no win no fee basis, as well as potentially self financing payment options, each case is dependent on its merits – many tenants have been skeptical but just review our testimonials – our clients are happy to provide references!

If you have answered yes to any of the above you may need Pub Innsite, to act in your best interests, because you shouldn’t expect your Pub Company to act for both sides.

Be Professional, be Prepared, call Pub Innsite for a no obligation discussion about your pub rent review or renewal.

Negotiated settlements have cost clients from £1,500 to £4,000 plus VAT and have saved tenants many times the cost of the fees in actual reduced rent or in quoted rent.

If you would like a brief “how to” leaflet providing basic pub rent review advice or lease renewal advice, please e-mail us and we’ll send you the relevant information.