Admiral – Punch – Star Pubs & Bars – Marston’s – Greene King – EI Group (tied tenants only)
IMPORTANT NEWS: If your pub company landlord has written to you recently and notified you of a change to your tied rent it is likely you can make this a permanent change by savvy use of the pubs code regulations.
This will be to tenants advantage for a number of reasons but mostly it will mean a fresh opportunity to move off the current rent and onto a new rent taking into account fully the economic reality of the trade for the years ahead.
It’s true to say pub rents have never been further out of kilter than right now, we think it is of critical importance for tied publicans to activate a rent review if they can (now called a rent assessment under the pubs-code). Most pub agreements do not automatically allow for such an assessment, but the tied tenants of regulated pub companies have statutory rights –
……..you should note this maybe you only chance to do this as most regulations are time sensitive so do not delay………
We think it will be of immense value as even if you have a sympathetic landlord it remains very uncertain if the sales will return to previous levels of activity when restrictions are finally lifted and when the concessionary support they are offering now is withdrawn.
Consider if your rent goes back to 100% but the trade and level of sales are still far from normal and (say) 10% 20% or 50% down from previous – what can you do to redress the huge imbalance of a rent that is no longer representative of the market conditions? Imagine for a moment what any “willing tenant” acting prudently would bid or pay for rent if the they took a pub on now?